Bill Text: OH HB42 | 2013-2014 | 130th General Assembly | Introduced

---

Bill Title: To revise the requirements concerning an oil and gas permit application, an oil and gas well completion record, designation of trade secret protection for chemicals used to drill or stimulate an oil and gas well, and disclosure of chemical information to a health care professional or emergency responder, to require an owner to report all chemicals brought to a well site, and to make other changes in the Oil and Gas Law.

Spectrum: Partisan Bill (Democrat 11-0)

Status: (Introduced - Dead) 2013-02-12 - To Agriculture and Natural Resources [HB42 Detail]

Download: Ohio-2013-HB42-Introduced.html

---

As Introduced

130th General Assembly Regular Session 2013-2014

H. B. No. 42

Representative Hagan, R. 

Cosponsors: Representatives Foley, Patterson, Boyd, Fedor, Antonio, Driehaus, Ramos, Mallory, Rogers, Milkovich 

---

A BILL

To amend sections 1509.06, 1509.10, and 1509.31 and

1

to enact section 1509.091 of the Revised Code to

2

revise the requirements concerning an oil and gas

3

permit application, an oil and gas well completion

4

record, designation of trade secret protection for

5

chemicals used to drill or stimulate an oil and

6

gas well, and disclosure of chemical information

7

to a health care professional or emergency

8

responder, to require an owner to report all

9

chemicals brought to a well site, and to make

10

other changes in the Oil and Gas Law.

11

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:

Section 1.  That sections 1509.06, 1509.10, and 1509.31 be	12
amended and section 1509.091 of the Revised Code be enacted to	13
read as follows:	14

Sec. 1509.06. (A) An application for a permit to drill a new	15
well, drill an existing well deeper, reopen a well, convert a well	16
to any use other than its original purpose, or plug back a well to	17
a different source of supply, including associated production	18
operations, shall be filed with the chief of the division of oil	19
and gas resources management upon such form as the chief	20
prescribes and shall contain each of the following that is	21
applicable:	22

(1) The name and address of the owner and, if a corporation,	23
the name and address of the statutory agent;	24

(2) The signature of the owner or the owner's authorized	25
agent. When an authorized agent signs an application, it shall be	26
accompanied by a certified copy of the appointment as such agent.	27

(3) The names and addresses of all persons holding the	28
royalty interest in the tract upon which the well is located or is	29
to be drilled or within a proposed drilling unit;	30

(4) The location of the tract or drilling unit on which the	31
well is located or is to be drilled identified by section or lot	32
number, city, village, township, and county;	33

(5) Designation of the well by name and number;

34

(6)(a) The geological formation to be tested or used and the	35
proposed total depth of the well;	36

(b) If the well is for the injection of a liquid, identity of	37
the geological formation to be used as the injection zone and the	38
composition of the liquid to be injected.	39

(7) The type of drilling equipment to be used;

40

(8)(a) An identification, to the best of the owner's	41
knowledge, of each proposed source of ground water and surface	42
water that will be used in the production operations of the well.	43
The identification of each proposed source of water shall indicate	44
if the water will be withdrawn from the Lake Erie watershed or the	45
Ohio river watershed. In addition, the owner shall provide, to the	46
best of the owner's knowledge, the proposed estimated rate and	47
volume of the water withdrawal for the production operations. If	48
recycled water will be used in the production operations, the	49
owner shall provide the estimated volume of recycled water to be	50
used. The owner shall submit to the chief an update of any of the	51
information that is required by division (A)(8)(a) of this section	52
if any of that information changes before the chief issues a	53
permit for the application.	54

(b) Except as provided in division (A)(8)(c) of this section,	55
for an application for a permit to drill a new well within an	56
urbanized area, the results of sampling of water wells within	57
three hundred feet of the proposed well prior to commencement of	58
drilling. In addition, the owner shall include a list that	59
identifies the location of each water well where the owner of the	60
property on which the water well is located denied the owner	61
access to sample the water well. The sampling shall be conducted	62
in accordance with the guidelines established in "Best Management	63
Practices For Pre-drilling Water Sampling" in effect at the time	64
that the application is submitted. The division shall furnish	65
those guidelines upon request and shall make them available on the	66
division's web site. If the chief determines that conditions at	67
the proposed well site warrant a revision, the chief may revise	68
the distance established in this division for purposes of	69
pre-drilling water sampling.	70

(c) For an application for a permit to drill a new horizontal	71
well, the results of sampling of water wells within one thousand	72
five hundred feet of the proposed horizontal wellhead prior to	73
commencement of drilling. In addition, the owner shall include a	74
list that identifies the location of each water well where the	75
owner of the property on which the water well is located denied	76
the owner access to sample the water well. The sampling shall be	77
conducted in accordance with the guidelines established in "Best	78
Management Practices For Pre-drilling Water Sampling" in effect at	79
the time that the application is submitted. The division shall	80
furnish those guidelines upon request and shall make them	81
available on the division's web site. If the chief determines that	82
conditions at the proposed well site warrant a revision, the chief	83
may revise the distance established in this division for purposes	84
of pre-drilling water sampling.	85

(9) For an application for a permit to drill a new well	86
within an urbanized area, a sworn statement that the applicant has	87
provided notice by regular mail of the application to the owner of	88
each parcel of real property that is located within five hundred	89
feet of the surface location of the well and to the executive	90
authority of the municipal corporation or the board of township	91
trustees of the township, as applicable, in which the well is to	92
be located. In addition, the notice shall contain a statement that	93
informs an owner of real property who is required to receive the	94
notice under division (A)(9) of this section that within five days	95
of receipt of the notice, the owner is required to provide notice	96
under section 1509.60 of the Revised Code to each residence in an	97
occupied dwelling that is located on the owner's parcel of real	98
property. The notice shall contain a statement that an application	99
has been filed with the division of oil and gas resources	100
management, identify the name of the applicant and the proposed	101
well location, include the name and address of the division, and	102
contain a statement that comments regarding the application may be	103
sent to the division. The notice may be provided by hand delivery	104
or regular mail. The identity of the owners of parcels of real	105
property shall be determined using the tax records of the	106
municipal corporation or county in which a parcel of real property	107
is located as of the date of the notice.	108

(10) A plan for restoration of the land surface disturbed by	109
drilling operations. The plan shall provide for compliance with	110
the restoration requirements of division (A) of section 1509.072	111
of the Revised Code and any rules adopted by the chief pertaining	112
to that restoration.	113

(11)(a) A description by name or number of the county,	114
township, and municipal corporation roads, streets, and highways	115
that the applicant anticipates will be used for access to and	116
egress from the well site;	117

(b) For an application for a permit for a horizontal well, a	118
copy of an agreement concerning maintenance and safe use of the	119
roads, streets, and highways described in division (A)(11)(a) of	120
this section entered into on reasonable terms with the public	121
official that has the legal authority to enter into such	122
maintenance and use agreements for each county, township, and	123
municipal corporation, as applicable, in which any such road,	124
street, or highway is located or an affidavit on a form prescribed	125
by the chief attesting that the owner attempted in good faith to	126
enter into an agreement under division (A)(11)(b) of this section	127
with the applicable public official of each such county, township,	128
or municipal corporation, but that no agreement was executed.	129

(12) For an application for a permit to drill a new	130
horizontal well, the type, volume, and geochemistry of each fluid	131
that is proposed to be used to stimulate the reservoir of the	132
proposed well, the proposed method that will be used for the	133
containment of fluids recovered from the fracturing of the	134
proposed well, and the proposed methods that will be used for the	135
containment of fluids when pulled from the wellbore from swabbing	136
the proposed well. In addition, the application shall include an	137
identification of any chemical that is proposed to be added to	138
each fluid that is proposed to be used to stimulate the reservoir	139
of the proposed well and shall include the chemical's name, the	140
chemical abstracts service number, the chemical family name, the	141
trade name, the vendor, a brief description of the chemical's	142
intended use or function, and the proposed quantity to be used	143
that is reported as a percentage, by weight or volume, of the	144
total fluid. However, the application shall not include	145
information that is designated as a trade secret pursuant to	146
division (I)(1) of section 1509.10 of the Revised Code.	147

(13) Such other relevant information as the chief prescribes	148
by rule.	149

Each application shall be accompanied by a map, on a scale	150
not smaller than four hundred feet to the inch, prepared by an	151
Ohio registered surveyor, showing the location of the well and	152
containing such other data as may be prescribed by the chief. If	153
the well is or is to be located within the excavations and	154
workings of a mine, the map also shall include the location of the	155
mine, the name of the mine, and the name of the person operating	156
the mine.	157

(B) The chief shall cause a copy of the weekly circular	158
prepared by the division to be provided to the county engineer of	159
each county that contains active or proposed drilling activity.	160
The weekly circular shall contain, in the manner prescribed by the	161
chief, the names of all applicants for permits, the location of	162
each well or proposed well, the information required by division	163
(A)(11) of this section, and any additional information the chief	164
prescribes. In addition, the chief promptly shall transfer an	165
electronic copy or facsimile, or if those methods are not	166
available to a municipal corporation or township, a copy via	167
regular mail, of a drilling permit application to the clerk of the	168
legislative authority of the municipal corporation or to the clerk	169
of the township in which the well or proposed well is or is to be	170
located if the legislative authority of the municipal corporation	171
or the board of township trustees has asked to receive copies of	172
such applications and the appropriate clerk has provided the chief	173
an accurate, current electronic mailing address or facsimile	174
number, as applicable.	175

(C)(1) Except as provided in division (C)(2) of this section,	176
the chief shall not issue a permit for at least ten days after the	177
date of filing of the application for the permit unless, upon	178
reasonable cause shown, the chief waives that period or a request	179
for expedited review is filed under this section. However, the	180
chief shall issue a permit within twenty-one days of the filing of	181
the application unless the chief denies the application by order.	182

(2) If the location of a well or proposed well will be or is	183
within an urbanized area, the chief shall not issue a permit for	184
at least eighteen days after the date of filing of the application	185
for the permit unless, upon reasonable cause shown, the chief	186
waives that period or the chief at the chief's discretion grants a	187
request for an expedited review. However, the chief shall issue a	188
permit for a well or proposed well within an urbanized area within	189
thirty days of the filing of the application unless the chief	190
denies the application by order.	191

(D) An applicant may file a request with the chief for	192
expedited review of a permit application if the well is not or is	193
not to be located in a gas storage reservoir or reservoir	194
protective area, as "reservoir protective area" is defined in	195
section 1571.01 of the Revised Code. If the well is or is to be	196
located in a coal bearing township, the application shall be	197
accompanied by the affidavit of the landowner prescribed in	198
section 1509.08 of the Revised Code.	199

In addition to a complete application for a permit that meets	200
the requirements of this section and the permit fee prescribed by	201
this section, a request for expedited review shall be accompanied	202
by a separate nonrefundable filing fee of two hundred fifty	203
dollars. Upon the filing of a request for expedited review, the	204
chief shall cause the county engineer of the county in which the	205
well is or is to be located to be notified of the filing of the	206
permit application and the request for expedited review by	207
telephone or other means that in the judgment of the chief will	208
provide timely notice of the application and request. The chief	209
shall issue a permit within seven days of the filing of the	210
request unless the chief denies the application by order.	211
Notwithstanding the provisions of this section governing expedited	212
review of permit applications, the chief may refuse to accept	213
requests for expedited review if, in the chief's judgment, the	214
acceptance of the requests would prevent the issuance, within	215
twenty-one days of their filing, of permits for which applications	216
are pending.	217

(E) A well shall be drilled and operated in accordance with	218
the plans, sworn statements, and other information submitted in	219
the approved application.	220

(F) The chief shall issue an order denying a permit if the	221
chief finds that there is a substantial risk that the operation	222
will result in violations of this chapter or rules adopted under	223
it that will present an imminent danger to public health or safety	224
or damage to the environment, provided that where the chief finds	225
that terms or conditions to the permit can reasonably be expected	226
to prevent such violations, the chief shall issue the permit	227
subject to those terms or conditions, including, if applicable,	228
terms and conditions regarding subjects identified in rules	229
adopted under section 1509.03 of the Revised Code. The issuance of	230
a permit shall not be considered an order of the chief.	231

The chief shall post notice of each permit that has been	232
approved under this section on the division's web site not later	233
than two business days after the application for a permit has been	234
approved.	235

(G) Each application for a permit required by section 1509.05	236
of the Revised Code, except an application to plug back an	237
existing well that is required by that section and an application	238
for a well drilled or reopened for purposes of section 1509.22 of	239
the Revised Code, also shall be accompanied by a nonrefundable fee	240
as follows:	241

(1) Five hundred dollars for a permit to conduct activities	242
in a township with a population of fewer than ten thousand;	243

(2) Seven hundred fifty dollars for a permit to conduct	244
activities in a township with a population of ten thousand or	245
more, but fewer than fifteen thousand;	246

(3) One thousand dollars for a permit to conduct activities	247
in either of the following:	248

(a) A township with a population of fifteen thousand or more;

249

(b) A municipal corporation regardless of population.

250

(4) If the application is for a permit that requires	251
mandatory pooling, an additional five thousand dollars.	252

For purposes of calculating fee amounts, populations shall be	253
determined using the most recent federal decennial census.	254

Each application for the revision or reissuance of a permit	255
shall be accompanied by a nonrefundable fee of two hundred fifty	256
dollars.	257

(H)(1) Prior to the commencement of well pad construction and	258
prior to the issuance of a permit to drill a proposed horizontal	259
well or a proposed well that is to be located in an urbanized	260
area, the division shall conduct a site review to identify and	261
evaluate any site-specific terms and conditions that may be	262
attached to the permit. At the site review, a representative of	263
the division shall consider fencing, screening, and landscaping	264
requirements, if any, for similar structures in the community in	265
which the well is proposed to be located. The terms and conditions	266
that are attached to the permit shall include the establishment of	267
fencing, screening, and landscaping requirements for the surface	268
facilities of the proposed well, including a tank battery of the	269
well.	270

(2) Prior to the issuance of a permit to drill a proposed	271
well, the division shall conduct a review to identify and evaluate	272
any site-specific terms and conditions that may be attached to the	273
permit if the proposed well will be located in a one-hundred-year	274
floodplain or within the five-year time of travel associated with	275
a public drinking water supply.	276

(I) A permit shall be issued by the chief in accordance with	277
this chapter. A permit issued under this section for a well that	278
is or is to be located in an urbanized area shall be valid for	279
twelve months, and all other permits issued under this section	280
shall be valid for twenty-four months.	281

(J) An applicant or a permittee, as applicable, shall submit	282
to the chief an update of the information that is required under	283
division (A)(8)(a) of this section if any of that information	284
changes prior to commencement of production operations.	285

(K) In addition to a complete application to drill a new	286
horizontal well, an applicant also shall submit to the chief the	287
specific chemical identity or chemical name or other specific	288
information pertaining to each chemical, as applicable, for which	289
the chief has issued an order under division (I)(1) of section	290
1509.10 of the Revised Code approving a request for trade secret	291
designation and that is proposed to be added to each fluid that is	292
proposed to be used to stimulate the reservoir of the proposed	293
well. The applicant shall include the chemical's name, the	294
chemical abstracts service number, the chemical family name, the	295
trade name, the vendor, a brief description of the chemical's	296
intended use or function, and the proposed quantity to be used	297
that is reported as a percentage, by weight or volume, of the	298
total fluid. The chief shall maintain a database consisting of the	299
information received pursuant to this division and shall disclose	300
the information in the database only for the purposes specified in	301
division (H) of section 1509.10 of the Revised Code. The chief may	302
adopt rules in accordance with Chapter 119. of the Revised Code	303
that are necessary for the administration of this division.	304

(L) A permittee or a permittee's authorized representative	305
shall notify an inspector from the division at least twenty-four	306
hours, or another time period agreed to by the chief's authorized	307
representative, prior to the commencement of well pad construction	308
and of drilling, reopening, converting, well stimulation, or	309
plugback operations.	310

Sec. 1509.091. If a chemical or a fluid containing a chemical	311
is brought to a well site, the owner of the well immediately shall	312
submit to the chief of the division of oil and gas resources	313
management a list that identifies each chemical or each chemical	314
in the fluid, as applicable, and that includes information that is	315
designated as a trade secret pursuant to division (I)(1) of	316
section 1509.10 of the Revised Code, and that identifies the well.	317
The chief shall maintain a database consisting of the information	318
received pursuant to this section and shall disclose the	319
information in the database only for the purposes specified in	320
division (H) of section 1509.10 of the Revised Code. The chief	321
shall adopt rules in accordance with Chapter 119. of the Revised	322
Code that are necessary for the administration of this section and	323
to preserve the confidentiality of trade secrets.	324

Sec. 1509.10.  (A) Any person drilling within the state	325
shall, within sixty days after the completion of drilling	326
operations to the proposed total depth or after a determination	327
that a well is a dry or lost hole, file with the division of oil	328
and gas resources management all wireline electric logs and an	329
accurate well completion record on a form that is prescribed by	330
the chief of the division of oil and gas resources management that	331
designates:	332

(1) The purpose for which the well was drilled;

333

(2) The character, depth, and thickness of geological units	334
encountered, including coal seams, mineral beds, associated fluids	335
such as fresh water, brine, and crude oil, natural gas, and sour	336
gas, if such seams, beds, fluids, or gases are known;	337

(3) The dates on which drilling operations were commenced and	338
completed;	339

(4) The types of drilling tools used and the name of the	340
person that drilled the well;	341

(5) The length in feet of the various sizes of casing and	342
tubing used in drilling the well, the amount removed after	343
completion, the type and setting depth of each packer, all other	344
data relating to cementing in the annular space behind such casing	345
or tubing, and data indicating completion as a dry, gas, oil,	346
combination oil and gas, brine injection, or artificial brine well	347
or a stratigraphic test;	348

(6) The number of perforations in the casing and the	349
intervals of the perforations;	350

(7) The elevation above mean sea level of the point from	351
which the depth measurements were made, stating also the height of	352
the point above ground level at the well, the total depth of the	353
well, and the deepest geological unit that was penetrated in the	354
drilling of the well;	355

(8) If applicable, the type, volume, and concentration of	356
acid, and the date on which acid was used in acidizing the well;	357

(9)(a) If applicable, the trade name and the total amount of	358
all products, fluids, and substances, and the supplier of each	359
product, fluid, or substance, not including cement and its	360
constituents and lost circulation materials, intentionally added	361
to facilitate the drilling of any portion of the well until the	362
surface casing is set and properly sealed. The owner shall	363
identify each additive used and provide a brief description of the	364
purpose for which the additive is used. In addition, the owner	365
shall include a list of all chemicals, not including any	366
information that is designated as a trade secret pursuant to	367
division (I)(1) of this section, intentionally added to all	368
products, fluids, or substances and include each chemical's	369
corresponding chemical abstracts service number and the maximum	370
concentration of each chemical. The owner shall obtain the	371
chemical information, not including any information that is	372
designated as a trade secret pursuant to division (I)(1) of this	373
section, from the company that drilled the well, provided service	374
at the well, or supplied the chemicals. If the company that	375
drilled the well, provided service at the well, or supplied the	376
chemicals provides incomplete or inaccurate chemical information,	377
the owner shall make reasonable efforts to obtain the required	378
information from the company or supplier.	379

(b) For purposes of division (A)(9)(a) of this section, if	380
recycled fluid was used, the total volume of recycled fluid and	381
the well that is the source of the recycled fluid or the	382
centralized facility that is the source of the recycled fluid.	383

(10)(a) If applicable, the type and volume of fluid, not	384
including cement and its constituents or information that is	385
designated as a trade secret pursuant to division (I)(1) of this	386
section, used to stimulate the reservoir of the well, the	387
reservoir breakdown pressure, the method used for the containment	388
of fluids recovered from the fracturing of the well, the methods	389
used for the containment of fluids when pulled from the wellbore	390
from swabbing the well, the average pumping rate of the well, and	391
the name of the person that performed the well stimulation. In	392
addition, the owner shall include a copy of the log from the	393
stimulation of the well, a copy of the invoice for each of the	394
procedures and methods described in division (A)(10) of this	395
section that were used on a well, and a copy of the pumping	396
pressure and rate graphs. However, the owner may redact from the	397
copy of each invoice that is required to be included under	398
division (A)(10) of this section the costs of and charges for the	399
procedures and methods described in division (A)(10) of this	400
section that were used on a well.	401

(b) If applicable, the trade name and the total volume of all	402
products, fluids, and substances, and the supplier of each	403
product, fluid, or substance used to stimulate the well. The owner	404
shall identify each additive used, provide a brief description of	405
the purpose for which the additive is used, and include the	406
maximum concentration of the additive used. In addition, the owner	407
shall include a list of all chemicals, not including any	408
information that is designated as a trade secret pursuant to	409
division (I)(1) of this section, intentionally added to all	410
products, fluids, or substances, include the name of each vendor	411
of each chemical, and include each chemical's corresponding	412
chemical abstracts service number, the chemical family name, the	413
trade name, a brief description of each chemical's intended use or	414
function, and the maximum concentration of each chemical reported	415
as a percentage. The owner shall obtain the chemical information,	416
not including any information that is designated as a trade secret	417
pursuant to division (I)(1) of this section, from the company that	418
stimulated the well or supplied the chemicals. If the company that	419
stimulated the well or supplied the chemicals provides incomplete	420
or inaccurate chemical information, the owner shall make	421
reasonable efforts to obtain the required information from the	422
company or supplier.	423

(c) For purposes of division (A)(10)(b) of this section, if	424
recycled fluid was used, the total volume of recycled fluid and	425
the well that is the source of the recycled fluid or the	426
centralized facility that is the source of the recycled fluid.	427

(11) The name of the company that performed the logging of	428
the well and the types of wireline electric logs performed on the	429
well.	430

The well completion record shall be submitted in duplicate.	431
The first copy shall be retained as a permanent record in the	432
files of the division, and the second copy shall be transmitted by	433
the chief to the division of geological survey.	434

(B)(1) Not later than sixty days after the completion of the	435
drilling operations to the proposed total depth, the owner shall	436
file all wireline electric logs with the division of oil and gas	437
resources management and the chief shall transmit such logs	438
electronically, if available, to the division of geological	439
survey. Such logs may be retained by the owner for a period of not	440
more than six months, or such additional time as may be granted by	441
the chief in writing, after the completion of the well	442
substantially to the depth shown in the application required by	443
section 1509.06 of the Revised Code.	444

(2) If a well is not completed within sixty days after the	445
completion of drilling operations, the owner shall file with the	446
division of oil and gas resources management a supplemental well	447
completion record that includes all of the information required	448
under this section within sixty days after the completion of the	449
well.	450

(3) After a well is initially completed and stimulated and	451
until the well is plugged, the owner shall report, on a form	452
prescribed by the chief, all materials placed into the formation	453
to refracture, restimulate, or newly complete the well. The owner	454
shall submit the information within sixty days after completing	455
the refracturing, restimulation, or new completion. In addition,	456
the owner shall report the information required in divisions	457
(A)(10)(a) to (c) of this section, as applicable, in a manner	458
consistent with the requirements established in this section.	459

(C) Upon request in writing by the chief of the division of	460
geological survey prior to the beginning of drilling of the well,	461
the person drilling the well shall make available a complete set	462
of cuttings accurately identified as to depth.	463

(D) The form of the well completion record required by this	464
section shall be one that has been prescribed by the chief of the	465
division of oil and gas resources management and the chief of the	466
division of geological survey. The filing of a log as required by	467
this section fulfills the requirement of filing a log with the	468
chief of the division of geological survey in section 1505.04 of	469
the Revised Code.	470

(E) If a material listed or designated under division (A)(9)	471
or (10) or (B)(3) of this section is a material for which the	472
division of oil and gas resources management does not have a	473
material safety data sheet, the owner shall provide a copy of the	474
material safety data sheet for the material to the chief.	475

(F) An owner shall submit to the chief the information that	476
is required in divisions (A)(10)(b) and (c) and (B)(3) of this	477
section consistent with the requirements established in this	478
section using one of the following methods:	479

(1) On a form prescribed by the chief;

480

(2) Through the chemical disclosure registry that is	481
maintained by the ground water protection council and the	482
interstate oil and gas compact commission;	483

(3) Any other means approved by the chief.

484

(G) The chief shall post on the division's web site each	485
material safety data sheet obtained under division (E) of this	486
section. In addition, the chief shall make available through the	487
division's web site the chemical information that is required by	488
divisions (A)(9) and (10) and (B)(3) of this section. If the chief	489
issues an order pursuant to division (I)(1) of this section	490
denying a request for trade secret designation and if the owner or	491
person requesting the trade secret designation does not appeal the	492
chief's order or if a court determines that the chemical identity,	493
the chemical name, or other specific information pertaining to the	494
chemical is not entitled to trade secret protection, the chief	495
shall make available through the division's web site the chemical	496
information.	497

(H)(1) As used in this division:

498

(a) "Health care professional" means an individual authorized	499
under Chapter 4731. of the Revised Code to practice medicine and	500
surgery, osteopathic medicine and surgery, or podiatric medicine	501
and surgery and an individual licensed under Chapter 4723. of the	502
Revised Code to practice nursing as a registered nurse or licensed	503
practical nurse.	504

(b) "Emergency responder" means a member of a fire department	505
as defined in section 742.01 of the Revised Code, a member of a	506
police department as defined in section 742.01 of the Revised	507
Code, emergency medical service personnel as defined in section	508
4765.01 of the Revised Code, and a member of a regional response	509
team as defined in section 5502.41 of the Revised Code.	510

(2) If a medicalhealth care professional or emergency	511
responder, in order to assist in the diagnosis or treatment of an	512
individual who wasmay have been affected by an incident	513
associated with the production operations of a well construction,	514
drilling, stimulation, completion, production, or other production	515
operations at a well or by chemical transportation accidents	516
related to the production operations of a well, requests the exact	517
chemical composition of each product, fluid, or substance and of	518
each chemical component in a product, fluid, or substanceidentity	519
or chemical name or other specific information pertaining to a	520
chemical that is designated as a trade secret pursuant to division	521
(I) of this section, the person claiming the trade secret	522
protection pursuant to that divisionchief shall provide to the	523
medicalhealth care professional or emergency responder, as	524
expeditiously as possible, the exact chemical composition of the	525
product, fluid, or substance and of the chemical component in a	526
product, fluid, or substanceidentity or chemical name or other	527
specified information pertaining to the chemical that is	528
requested.	529

(2) A medical professional who receives information pursuant	530
to division (H)(1) of this section shall keep the information	531
confidential and shall not disclose the information for any	532
purpose that is not related to the diagnosis or treatment of an	533
individual who was affected by an incident associated with the	534
production operations of a well. Nothing in division (H)(2) of	535
this section precludes a medical professional from making any	536
report required by law or professional ethical standards.	537

(3) The chief shall provide to the directors of all county	538
emergency management agencies in the state continuous online	539
access to all chemical information received by the chief in	540
conjunction with a permit application or report regarding a	541
horizontal well site pursuant to division (K) of section 1509.06,	542
section 1509.091, and division (L) of section 1509.10 of the	543
Revised Code.	544

(I)(1) The owner of a well who is required to submit a well	545
completion record under division (A) of this section or a report	546
under division (B)(3) of this section or a person that provides	547
information to the owner as described in and for purposes of	548
division (A)(9) or (10) or (B)(3) of this section may designate	549
without disclosingrequest on a form prescribed by the chief and	550
withhold from disclosure to the chief the identity, amount,	551
concentration, or purpose of a product, fluid, or substance or of	552
a chemical component in a product, fluid, or substance as a trade	553
secret. Thethat the specific chemical identity, including the	554
chemical name and other specific information pertaining to the	555
chemical, be designated as a trade secret and withheld from	556
disclosure. The owner or person shall demonstrate on the form that	557
the information sought to be designated as a trade secret is a	558
trade secret as defined in section 1333.61 of the Revised Code.	559
After receipt and review of a form requesting trade secret	560
designation, the chief may request the owner or person to provide	561
additional information concerning the request. Not later than	562
sixty days after receipt of a form requesting trade secret	563
designation, the chief shall issue an order either approving or	564
denying the request for trade secret designation. The chief shall	565
send a copy of the order to the owner or person. The owner or	566
person may appeal the chief's order denying the request for trade	567
secret designation pursuant to section 1509.36 of the Revised	568
Code. The chief may adopt rules in accordance with Chapter 119. of	569
the Revised Code that are necessary and appropriate to administer	570
this division or to preserve the confidentiality of trade secrets.	571

(2) The owner or person may pursue enforcement of any rights	572
or remedies established in sections 1333.61 to 1333.69 of the	573
Revised Code for misappropriation, as defined in section 1333.61	574
of the Revised Code, with respect to the chemical identity,	575
amount, concentration, or purpose of a product, fluid, or	576
substance or a chemical component in a product, fluid, or	577
substanceor chemical name or other specific information	578
pertaining to the chemical designated as a trade secret pursuant	579
to division (I)(1) of this section. The division shall not	580
disclose information regarding the chemical identity, amount,	581
concentration, or purpose of any product, fluid, or substance or	582
of any chemical component in a product, fluid, or substanceor	583
chemical name or other specific information pertaining to the	584
chemical designated as a trade secret pursuant to division (I)(1)	585
of this section.	586

(2)(3) A property owner, an adjacent property owner, or any	587
person or agency of this state having an interest that is or may	588
be adversely affected by a product, fluid, or substance or by a	589
chemical component in a product, fluid, or substance may commence	590
a civil action in the court of common pleas of Franklin county	591
against an owner or person described in division (I)(1) of this	592
section challenging the owner's or person's claim to entitlement	593
to trade secret protection for the specific chemical identity,	594
amount, concentration, or purpose of a product, fluid, or	595
substance or of a chemical component in a product, fluid, or	596
substanceor chemical name or other specific information	597
pertaining to the chemical pursuant to division (I)(1) of this	598
section. A person who commences a civil action pursuant to	599
division (I)(2)(3) of this section shall provide notice to the	600
chief in a manner prescribed by the chief. In the civil action,	601
the court shall conduct an in camera review of information	602
submitted by an owner or person described in division (I)(1) of	603
this section to determine if the chemical identity, amount,	604
concentration, or purpose of a product, fluid, or substance or of	605
a chemical component in a product, fluid, or substanceor chemical	606
name or other specific information pertaining to the chemical	607
pursuant to division (I)(1) of this section is entitled to trade	608
secret protection.	609

(J)(1) Except for any information that is designated as a	610
trade secret pursuant to division (I)(1) of this section and	611
except as provided in division (J)(2) of this section, the owner	612
of a well shall maintain records of all chemicals placed in a well	613
for a period of not less than two years after the date on which	614
each such chemical was placed in the well. The chief may inspect	615
the records at any time concerning any such chemical.	616

(2) An owner or person whoto whom the chief has designated	617
issued an order designating the chemical identity, amount,	618
concentration, or purpose of a product, fluid, or substance or of	619
a chemical component in a product, fluid, or substanceor chemical	620
name or other specific information pertaining to a chemical as a	621
trade secret pursuant to division (I)(1) of this section shall	622
maintain the records for such a product, fluid, or substance or	623
for a chemical component in a product, fluid, or substance	624
chemical for a period of not less than two years after the date on	625
which each such product, fluid, or substance or each such chemical	626
component in a product, fluid, or substancechemical was placed in	627
the well. Upon the request of the chief, the owner or person, as	628
applicable, shall disclose the records to the chief if the	629
information is necessary to respond to a spill, release, or	630
investigation. However, the chief shall not disclose the	631
information that is designated as a trade secret.	632

(K)(1) For purposes of correcting inaccuracies and	633
incompleteness in chemical information required by divisions	634
(A)(9) and (10) and (B)(3) of this section, an owner shall be	635
considered in substantial compliance if the owner has made	636
reasonable efforts to obtain the required information from the	637
supplier.	638

(2) For purposes of reporting under this section, an owner is	639
not required to report chemicals that occur incidentally or in	640
trace amounts.	641

(L) At the same time that a well completion record is	642
submitted in accordance with division (A) of this section and at	643
the same time that a report is submitted under division (B)(3) of	644
this section, the owner separately shall submit to the chief the	645
information that is required in division (A)(9) or (10) or (B)(3)	646
of this section, as applicable. However, the information also	647
shall include the specific chemical identity or chemical name or	648
other specific information pertaining to a chemical, as	649
applicable, for which the chief has issued an order under division	650
(I)(1) of this section approving a request for trade secret	651
designation. The chief shall maintain a database consisting of the	652
information received pursuant to this division and shall disclose	653
the information in the database only for the purposes specified in	654
division (H) of this section. The chief may adopt rules in	655
accordance with Chapter 119. of the Revised Code that are	656
necessary for the administration of this division.	657

Sec. 1509.31.  (A) Whenever the entire interest of an oil and	658
gas lease is assigned or otherwise transferred, the assignor or	659
transferor shall notify the holders of the royalty interests, and,	660
if a well or wells exist on the lease, the division of oil and gas	661
resources management, of the name and address of the assignee or	662
transferee by certified mail, return receipt requested, not later	663
than thirty days after the date of the assignment or transfer.	664
When notice of any such assignment or transfer is required to be	665
provided to the division, it shall be provided on a form	666
prescribed and provided by the division and verified by both the	667
assignor or transferor and by the assignee or transferee and shall	668
be accompanied by a nonrefundable fee of one hundred dollars for	669
each well. The notice form applicable to assignments or transfers	670
of a well to the owner of the surface estate of the tract on which	671
the well is located shall contain a statement informing the	672
landowner that the well may require periodic servicing to maintain	673
its productivity; that, upon assignment or transfer of the well to	674
the landowner, the landowner becomes responsible for compliance	675
with the requirements of this chapter and rules adopted under it,	676
including, without limitation, the proper disposal of brine	677
obtained from the well, the plugging of the well when it becomes	678
incapable of producing oil or gas, and the restoration of the well	679
site; and that, upon assignment or transfer of the well to the	680
landowner, the landowner becomes responsible for the costs of	681
compliance with the requirements of this chapter and rules adopted	682
under it and the costs for operating and servicing the well.	683

(B) When the entire interest of a well is proposed to be	684
assigned or otherwise transferred to the landowner for use as an	685
exempt domestic well, the owner who has been issued a permit under	686
this chapter for the well shall submit to the chief of the	687
division of oil and gas resources management an application for	688
the assignment or transfer that contains all documents that the	689
chief requires and a nonrefundable fee of one hundred dollars. The	690
application for such an assignment or transfer shall be prescribed	691
and provided by the chief. The chief may approve the application	692
if the application is accompanied by a release of all of the oil	693
and gas leases that are included in the applicable formation of	694
the drilling unit, the release is in a form such that the well	695
ownership merges with the fee simple interest of the surface	696
tract, and the release is in a form that may be recorded. However,	697
if the owner of the well does not release the oil and gas leases	698
associated with the well that is proposed to be assigned or	699
otherwise transferred or if the fee simple tract that results from	700
the merger of the well ownership with the fee simple interest of	701
the surface tract is less than five acres, the proposed exempt	702
domestic well owner shall post a five thousand dollar bond with	703
the division prior to the assignment or transfer of the well to	704
ensure that the well will be properly plugged. The chief, for good	705
cause, may modify the requirements of this section governing the	706
assignment or transfer of the interests of a well to the	707
landowner. Upon the assignment or transfer of the well, the owner	708
of an exempt domestic well is not subject to the severance tax	709
levied under section 5749.02 of the Revised Code, but is subject	710
to all applicable fees established in this chapter.	711

(C) The owner holding a permit under section 1509.05 of the	712
Revised Code is responsible for all obligations and liabilities	713
imposed by this chapter and any rules, orders, and terms and	714
conditions of a permit adopted or issued under it, and no	715
assignment or transfer by the owner relieves the owner of the	716
obligations and liabilities until and unless the assignee or	717
transferee files with the division the information described in	718
divisions (A)(1), (2), (3), (4), (5), (10), (11), and (12)(13) of	719
section 1509.06 of the Revised Code; obtains liability insurance	720
coverage required by section 1509.07 of the Revised Code, except	721
when none is required by that section; and executes and files a	722
surety bond, negotiable certificates of deposit or irrevocable	723
letters of credit, or cash, as described in that section. Instead	724
of a bond, but only upon acceptance by the chief, the assignee or	725
transferee may file proof of financial responsibility, described	726
in section 1509.07 of the Revised Code. Section 1509.071 of the	727
Revised Code applies to the surety bond, cash, and negotiable	728
certificates of deposit and irrevocable letters of credit	729
described in this section. Unless the chief approves a	730
modification, each assignee or transferee shall operate in	731
accordance with the plans and information filed by the permit	732
holder pursuant to section 1509.06 of the Revised Code.	733

(D) If a mortgaged property that is being foreclosed is	734
subject to an oil or gas lease, pipeline agreement, or other	735
instrument related to the production or sale of oil or natural gas	736
and the lease, agreement, or other instrument was recorded	737
subsequent to the mortgage, and if the lease, agreement, or other	738
instrument is not in default, the oil or gas lease, pipeline	739
agreement, or other instrument, as applicable, has priority over	740
all other liens, claims, or encumbrances on the property so that	741
the oil or gas lease, pipeline agreement, or other instrument is	742
not terminated or extinguished upon the foreclosure sale of the	743
mortgaged property. If the owner of the mortgaged property was	744
entitled to oil and gas royalties before the foreclosure sale, the	745
oil or gas royalties shall be paid to the purchaser of the	746
foreclosed property.	747

Section 2.  That existing sections 1509.06, 1509.10, and	748
1509.31 of the Revised Code are hereby repealed.	749