Bill Text: OH HB474 | 2011-2012 | 129th General Assembly | Introduced

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Bill Title: To require a background check of an applicant for an injection well, to establish recycling and treatment requirements for wastewater from oil and gas drilling and production operations, to revise the procedures and requirements governing the application for and issuance of a permit for a well to inject such wastewater, to establish an additional fee on that injection, and to establish requirements governing ground water monitoring related to that injection.

Spectrum: Partisan Bill (Democrat 11-0)

Status: (Introduced - Dead) 2012-03-13 - To Agriculture & Natural Resources [HB474 Detail]

Download: Ohio-2011-HB474-Introduced.html

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As Introduced

129th General Assembly Regular Session 2011-2012

H. B. No. 474

Representative Goyal 

Cosponsors: Representatives Hagan, R., Foley, Driehaus, Boyd, O'Brien, Murray, Gerberry, Antonio, Fedor, Heard 

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A BILL

To amend sections 1509.02, 1509.06, 1509.22,

1

1509.221, and 1509.31 and to enact sections

2

1509.074, 1509.227, and 1590.228 of the Revised

3

Code to require a background check of an applicant

4

for an injection well, to establish recycling and

5

treatment requirements for wastewater from oil and

6

gas drilling and production operations, to revise

7

the procedures and requirements governing the

8

application for and issuance of a permit for a

9

well to inject such wastewater, to establish an

10

additional fee on that injection, and to establish

11

requirements governing ground water monitoring

12

related to that injection.

13

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

Section 1. That sections 1509.02, 1509.06, 1509.22, 1509.221,	14
and 1509.31 be amended and sections 1509.074, 1509.227, and	15
1509.228 of the Revised Code be enacted to read as follows:	16

Sec. 1509.02.  There is hereby created in the department of	17
natural resources the division of oil and gas resources	18
management, which shall be administered by the chief of the	19
division of oil and gas resources management. The division has	20
sole and exclusive authority to regulate the permitting, location,	21
and spacing of oil and gas wells and production operations within	22
the state, excepting only those activities regulated under federal	23
laws for which oversight has been delegated to the environmental	24
protection agency, the permitting of a well to inject brine or	25
other waste substances under division (D) of section 1509.22 of	26
the Revised Code, and activities regulated under sections 6111.02	27
to 6111.029 of the Revised Code. The regulation of oil and gas	28
activities is a matter of general statewide interest that requires	29
uniform statewide regulation, and this chapter and rules adopted	30
under it constitute a comprehensive plan with respect to all	31
aspects of the locating, drilling, well stimulation, completing,	32
and operating of oil and gas wells within this state, including	33
site construction and restoration, permitting related to those	34
activities, and the disposal of wastes from those wells. Nothing	35
in this section affects the authority granted to the director of	36
transportation and local authorities in section 723.01 or 4513.34	37
of the Revised Code, provided that the authority granted under	38
those sections shall not be exercised in a manner that	39
discriminates against, unfairly impedes, or obstructs oil and gas	40
activities and operations regulated under this chapter.	41

The chief shall not hold any other public office, nor shall	42
the chief be engaged in any occupation or business that might	43
interfere with or be inconsistent with the duties as chief.	44

All moneys collected by the chief pursuant to sections	45
1509.06, 1509.061, 1509.062, 1509.071, 1509.13, 1509.22, 1509.221,	46
1509.222, 1509.34, and 1509.50 and division (B)(1) of section	47
1509.221 of the Revised Code, ninety per cent of moneys received	48
by the treasurer of state from the tax levied in divisions (A)(5)	49
and (6) of section 5749.02 of the Revised Code, all civil	50
penalties paid under section 1509.33 of the Revised Code, and,	51
notwithstanding any section of the Revised Code relating to the	52
distribution or crediting of fines for violations of the Revised	53
Code, all fines imposed under divisions (A) and (B) of section	54
1509.99 of the Revised Code and fines imposed under divisions (C)	55
and (D) of section 1509.99 of the Revised Code for all violations	56
prosecuted by the attorney general and for violations prosecuted	57
by prosecuting attorneys that do not involve the transportation of	58
brine by vehicle shall be deposited into the state treasury to the	59
credit of the oil and gas well fund, which is hereby created.	60
Fines imposed under divisions (C) and (D) of section 1509.99 of	61
the Revised Code for violations prosecuted by prosecuting	62
attorneys that involve the transportation of brine by vehicle and	63
penalties associated with a compliance agreement entered into	64
pursuant to this chapter shall be paid to the county treasury of	65
the county where the violation occurred.	66

The fund shall be used solely and exclusively for the	67
purposes enumerated in division (B) of section 1509.071 of the	68
Revised Code, for the expenses of the division associated with the	69
administration of this chapter and Chapter 1571. of the Revised	70
Code and rules adopted under them, and for expenses that are	71
critical and necessary for the protection of human health and	72
safety and the environment related to oil and gas production in	73
this state. The expenses of the division in excess of the moneys	74
available in the fund shall be paid from general revenue fund	75
appropriations to the department.	76

Sec. 1509.06. (A) An application for a permit to drill a new	77
well, drill an existing well deeper, reopen a well, convert a well	78
to any use other than its original purpose, or plug back a well to	79
a different source of supply, including associated production	80
operations, shall be filed with the chief of the division of oil	81
and gas resources management upon such form as the chief	82
prescribes and shall contain each of the following that is	83
applicable:	84

(1) The name and address of the owner and, if a corporation,	85
the name and address of the statutory agent;	86

(2) The signature of the owner or the owner's authorized	87
agent. When an authorized agent signs an application, it shall be	88
accompanied by a certified copy of the appointment as such agent.	89

(3) The names and addresses of all persons holding the	90
royalty interest in the tract upon which the well is located or is	91
to be drilled or within a proposed drilling unit;	92

(4) The location of the tract or drilling unit on which the	93
well is located or is to be drilled identified by section or lot	94
number, city, village, township, and county;	95

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

96

(6) The geological formation to be tested or used and the	97
proposed total depth of the well;	98

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

99

(8) If the well is for the injection of a liquid, identity of	100
the geological formation to be used as the injection zone and the	101
composition of the liquid to be injected;	102

(9) For an application for a permit to drill a new well	103
within an urbanized area, a sworn statement that the applicant has	104
provided notice by regular mail of the application to the owner of	105
each parcel of real property that is located within five hundred	106
feet of the surface location of the well and to the executive	107
authority of the municipal corporation or the board of township	108
trustees of the township, as applicable, in which the well is to	109
be located. In addition, the notice shall contain a statement that	110
informs an owner of real property who is required to receive the	111
notice under division (A)(9) of this section that within five days	112
of receipt of the notice, the owner is required to provide notice	113
under section 1509.60 of the Revised Code to each residence in an	114
occupied dwelling that is located on the owner's parcel of real	115
property. The notice shall contain a statement that an application	116
has been filed with the division of oil and gas resources	117
management, identify the name of the applicant and the proposed	118
well location, include the name and address of the division, and	119
contain a statement that comments regarding the application may be	120
sent to the division. The notice may be provided by hand delivery	121
or regular mail. The identity of the owners of parcels of real	122
property shall be determined using the tax records of the	123
municipal corporation or county in which a parcel of real property	124
is located as of the date of the notice.	125

(10) A plan for restoration of the land surface disturbed by	126
drilling operations. The plan shall provide for compliance with	127
the restoration requirements of division (A) of section 1509.072	128
of the Revised Code and any rules adopted by the chief pertaining	129
to that restoration.	130

(11) A description by name or number of the county, township,	131
and municipal corporation roads, streets, and highways that the	132
applicant anticipates will be used for access to and egress from	133
the well site;	134

(12) On and after the effective date of the rules adopted	135
under section 1509.074 of the Revised Code, a plan that complies	136
with that section and those rules for the recycling and treatment	137
of wastewater, including brine and other waste substances, that	138
results from, is obtained from, or is produced in connection with	139
oil or gas drilling, exploration, or production;	140

(13) Such other relevant information as the chief prescribes	141
by rule.	142

Each application shall be accompanied by a map, on a scale	143
not smaller than four hundred feet to the inch, prepared by an	144
Ohio registered surveyor, showing the location of the well and	145
containing such other data as may be prescribed by the chief. If	146
the well is or is to be located within the excavations and	147
workings of a mine, the map also shall include the location of the	148
mine, the name of the mine, and the name of the person operating	149
the mine.	150

(B) The chief shall cause a copy of the weekly circular	151
prepared by the division to be provided to the county engineer of	152
each county that contains active or proposed drilling activity.	153
The weekly circular shall contain, in the manner prescribed by the	154
chief, the names of all applicants for permits, the location of	155
each well or proposed well, the information required by division	156
(A)(11) of this section, and any additional information the chief	157
prescribes. In addition, the chief promptly shall transfer an	158
electronic copy or facsimile, or if those methods are not	159
available to a municipal corporation or township, a copy via	160
regular mail, of a drilling permit application to the clerk of the	161
legislative authority of the municipal corporation or to the clerk	162
of the township in which the well or proposed well is or is to be	163
located if the legislative authority of the municipal corporation	164
or the board of township trustees has asked to receive copies of	165
such applications and the appropriate clerk has provided the chief	166
an accurate, current electronic mailing address or facsimile	167
number, as applicable.	168

(C)(1) Except as provided in division (C)(2) of this section,	169
the chief shall not issue a permit for at least ten days after the	170
date of filing of the application for the permit unless, upon	171
reasonable cause shown, the chief waives that period or a request	172
for expedited review is filed under this section. However, the	173
chief shall issue a permit within twenty-one days of the filing of	174
the application unless the chief denies the application by order.	175

(2) If the location of a well or proposed well will be or is	176
within an urbanized area, the chief shall not issue a permit for	177
at least eighteen days after the date of filing of the application	178
for the permit unless, upon reasonable cause shown, the chief	179
waives that period or the chief at the chief's discretion grants a	180
request for an expedited review. However, the chief shall issue a	181
permit for a well or proposed well within an urbanized area within	182
thirty days of the filing of the application unless the chief	183
denies the application by order.	184

(D) An applicant may file a request with the chief for	185
expedited review of a permit application if the well is not or is	186
not to be located in a gas storage reservoir or reservoir	187
protective area, as "reservoir protective area" is defined in	188
section 1571.01 of the Revised Code. If the well is or is to be	189
located in a coal bearing township, the application shall be	190
accompanied by the affidavit of the landowner prescribed in	191
section 1509.08 of the Revised Code.	192

In addition to a complete application for a permit that meets	193
the requirements of this section and the permit fee prescribed by	194
this section, a request for expedited review shall be accompanied	195
by a separate nonrefundable filing fee of two hundred fifty	196
dollars. Upon the filing of a request for expedited review, the	197
chief shall cause the county engineer of the county in which the	198
well is or is to be located to be notified of the filing of the	199
permit application and the request for expedited review by	200
telephone or other means that in the judgment of the chief will	201
provide timely notice of the application and request. The chief	202
shall issue a permit within seven days of the filing of the	203
request unless the chief denies the application by order.	204
Notwithstanding the provisions of this section governing expedited	205
review of permit applications, the chief may refuse to accept	206
requests for expedited review if, in the chief's judgment, the	207
acceptance of the requests would prevent the issuance, within	208
twenty-one days of their filing, of permits for which applications	209
are pending.	210

(E) A well shall be drilled and operated in accordance with	211
the plans, sworn statements, and other information submitted in	212
the approved application.	213

(F) The chief shall issue an order denying a permit if the	214
chief finds that there is a substantial risk that the operation	215
will result in violations of this chapter or rules adopted under	216
it that will present an imminent danger to public health or safety	217
or damage to the environment, provided that where the chief finds	218
that terms or conditions to the permit can reasonably be expected	219
to prevent such violations, the chief shall issue the permit	220
subject to those terms or conditions, including, if applicable,	221
terms and conditions regarding subjects identified in rules	222
adopted under section 1509.03 of the Revised Code. The issuance of	223
a permit shall not be considered an order of the chief.	224

(G) Each application for a permit required by section 1509.05	225
of the Revised Code, except an application to plug back an	226
existing well that is required by that section and an application	227
for a well drilled or reopened for purposes of section 1509.22 of	228
the Revised Code, also shall be accompanied by a nonrefundable fee	229
as follows:	230

(1) Five hundred dollars for a permit to conduct activities	231
in a township with a population of fewer than ten thousand;	232

(2) Seven hundred fifty dollars for a permit to conduct	233
activities in a township with a population of ten thousand or	234
more, but fewer than fifteen thousand;	235

(3) One thousand dollars for a permit to conduct activities	236
in either of the following:	237

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

238

(b) A municipal corporation regardless of population.

239

(4) If the application is for a permit that requires	240
mandatory pooling, an additional five thousand dollars.	241

For purposes of calculating fee amounts, populations shall be	242
determined using the most recent federal decennial census.	243

Each application for the revision or reissuance of a permit	244
shall be accompanied by a nonrefundable fee of two hundred fifty	245
dollars.	246

(H) Prior to the issuance of a permit to drill a proposed	247
well that is to be located in an urbanized area, the division	248
shall conduct a site review to identify and evaluate any	249
site-specific terms and conditions that may be attached to the	250
permit. At the site review, a representative of the division shall	251
consider fencing, screening, and landscaping requirements, if any,	252
for similar structures in the community in which the well is	253
proposed to be located. The terms and conditions that are attached	254
to the permit shall include the establishment of fencing,	255
screening, and landscaping requirements for the surface facilities	256
of the proposed well, including a tank battery of the well.	257

(I) A permit shall be issued by the chief in accordance with	258
this chapter. A permit issued under this section for a well that	259
is or is to be located in an urbanized area shall be valid for	260
twelve months, and all other permits issued under this section	261
shall be valid for twenty-four months.	262

(J) A permittee or a permittee's authorized representative	263
shall notify an inspector from the division at least twenty-four	264
hours, or another time period agreed to by the chief's authorized	265
representative, prior to the commencement of drilling, reopening,	266
converting, well stimulation, or plugback operations.	267

Sec. 1509.074. (A) On and after the effective date of the	268
rules adopted under division (B) of this section, the owner of a	269
well that has been issued a permit under section 1509.06 of the	270
Revised Code shall recycle or treat wastewater, including brine	271
and other waste substances, that results from, is obtained from,	272
or is produced in connection with oil or gas drilling,	273
exploration, or production in accordance with the plan submitted	274
under division (A)(12) of that section.	275

(B) The chief of the division of oil and gas resources	276
management shall adopt rules in accordance with Chapter 119. of	277
the Revised Code establishing all of the following:	278

(1) Requirements governing the content and implementation of	279
the plan that must be submitted under division (A)(12) of section	280
1509.06 of the Revised Code;	281

(2) Procedures and requirements in accordance with which the	282
chief may authorize an owner to dispose of wastewater, including	283
brine and other waste substances, that results from, is obtained	284
from, or is produced in connection with oil or gas drilling,	285
exploration, or production in accordance with section 1509.22 of	286
the Revised Code if the owner demonstrates to the satisfaction of	287
the chief that such wastewater cannot be recycled or otherwise	288
treated;	289

(3) Any other requirement that the chief determines is	290
necessary to administer this section and division (A)(12) of	291
section 1509.06 of the Revised Code.	292

Sec. 1509.22.  (A) Except when acting in accordance with	293
section 1509.226 of the Revised Code, no person shall place or	294
cause to be placed brine, crude oil, natural gas, or other fluids	295
associated with the exploration or development of oil and gas	296
resources in surface or ground water or in or on the land in such	297
quantities or in such manner as actually causes or could	298
reasonably be anticipated to cause either of the following:	299

(1) Water used for consumption by humans or domestic animals	300
to exceed the standards of the Safe Drinking Water Act;	301

(2) Damage or injury to public health or safety or the	302
environment.	303

(B) No person shall store or dispose of brine in violation of	304
a plan approved under division (A) of section 1509.222 or section	305
1509.226 of the Revised Code, in violation of a resolution	306
submitted under section 1509.226 of the Revised Code, or in	307
violation of rules or orders applicable to those plans or	308
resolutions.	309

(C) The chief of the division of oil and gas resources	310
management shall adopt rules and issue orders regarding storage	311
and disposal of brine and other waste substances; however, the	312
storage and disposal of brine and other waste substances and the	313
chief's rules relating to storage and disposal are subject to all	314
of the following standards:	315

(1) Brine from any well except an exempt Mississippian well	316
shall be disposed of only by injection into an underground	317
formation, including annular disposal if approved by rule of the	318
chief, which injection shall be subject to division (D) of this	319
section; by surface application in accordance with section	320
1509.226 of the Revised Code; in association with a method of	321
enhanced recovery as provided in section 1509.21 of the Revised	322
Code; or by other methods approved by the chief for testing or	323
implementing a new technology or method of disposal. Brine from	324
exempt Mississippian wells shall not be discharged directly into	325
the waters of the state.	326

(2) Muds, cuttings, and other waste substances shall not be	327
disposed of in violation of any rule.	328

(3) Pits or steel tanks shall be used as authorized by the	329
chief for containing brine and other waste substances resulting	330
from, obtained from, or produced in connection with drilling, well	331
stimulation, reworking, reconditioning, plugging back, or plugging	332
operations. The pits and steel tanks shall be constructed and	333
maintained to prevent the escape of brine and other waste	334
substances.	335

(4) A dike or pit may be used for spill prevention and	336
control. A dike or pit so used shall be constructed and maintained	337
to prevent the escape of brine and crude oil, and the reservoir	338
within such a dike or pit shall be kept reasonably free of brine,	339
crude oil, and other waste substances.	340

(5) Earthen impoundments constructed pursuant to the	341
division's specifications may be used for the temporary storage of	342
fluids used in the stimulation of a well.	343

(6) No pit, earthen impoundment, or dike shall be used for	344
the temporary storage of brine or other substances except in	345
accordance with divisions (C)(3) to (5) of this section.	346

(7) No pit or dike shall be used for the ultimate disposal of	347
brine or other liquid waste substances.	348

(D)(1) No person, without first having obtained a permit from	349
the chief, shall inject brine or other waste substances resulting	350
from, obtained from, or produced in connection with oil or gas	351
drilling, exploration, or production into an underground formation	352
unless a rule of the chief expressly authorizes the injection	353
without a permit. The permit shall be in addition to any permit	354
required by section 1509.05 of the Revised Code, and the permit	355
application shall be accompanied by a permit fee of one thousand	356
dollars, the information that is required in section 1509.228 of	357
the Revised Code, and the waste analysis plan that is required by	358
division (D)(2) of this section. The	359

(2)(a) A person that submits an application for a permit to	360
inject brine or other waste substances resulting from, obtained	361
from, or produced in connection with oil or gas drilling,	362
exploration, or production into an underground formation shall	363
prepare and submit to the chief a waste analysis plan. The plan	364
shall consist of a written document that will be used as the basis	365
for analyzing the contents in each container of brine or other	366
waste substances that will be injected in the well. The waste	367
analysis plan shall include all of the following:	368

(i) A detailed description of the physical and chemical tests	369
that will be used to identify the contents in each container of	370
brine or other waste substances;	371

(ii) An explanation of the reasons for the selection of the	372
physical and chemical tests described pursuant to division	373
(D)(2)(a)(i) of this section;	374

(iii) A detailed description of the methods that will be used	375
to obtain a sample of the contents in each container of brine or	376
waste substances;	377

(iv) A detailed description of the quality assurance	378
procedures that will be used in the analysis of the contents in	379
each container of brine or other waste substances that will be	380
injected in the well;	381

(v) Any other information that the chief determines is	382
necessary.	383

(b) The chief shall review a waste analysis plan submitted	384
under division (D)(2)(a) of this section and approve or disapprove	385
the plan. The chief shall notify the applicant of the chief's	386
approval or disapproval of the plan. If the chief disapproves the	387
waste analysis plan, the applicant may correct any deficiencies	388
and resubmit the plan for approval.	389

(c) A person that obtains a permit under this section shall	390
revise the permittee's waste analysis plan as needed and shall	391
submit the revised plan to the chief for approval in the same	392
manner as the original plan. If the chief disapproves the revised	393
plan, the permittee may correct any deficiencies and resubmit the	394
revised plan for approval. For the purpose of division (D)(2)(d)	395
of this section, the permittee may continue to use the waste	396
analysis plan that was approved immediately prior to the	397
submission of a revised plan until the revised plan is approved.	398
The permittee of an injection well may analyze the contents in	399
each container of brine or other waste substances in accordance	400
with the revised plan.	401

(d) A permittee shall analyze the contents in each container	402
of brine or other waste substances in accordance with an approved	403
waste analysis plan prior to injecting the brine or other waste	404
substances into an underground formation.	405

(3)(a) After the chief determines that an application for a	406
permit is complete, the chief shall post on the division of oil	407
and gas resources management's web site a notification that	408
contains information regarding the application that is the same as	409
the information that is required to be contained in the weekly	410
circular of the division in division (B) of section 1509.06 of the	411
Revised Code. In addition, the chief shall establish the time,	412
date, and location of the public hearing that is required by	413
division (D)(3)(b) of this section and provide to the applicant	414
information regarding the public hearing, the permit application	415
number, and the location where a copy of the application may be	416
inspected.	417

(b) The chief shall hold a public hearing in the township or	418
municipal corporation, as applicable, where the proposed injection	419
well is to be located on the application for a permit submitted	420
under this section. The meeting shall be held not later than sixty	421
days after the applicant's fourth publication in a newspaper that	422
is required by division (D)(3)(c) of this section.	423

(c) Beginning in the week following the week of receipt of	424
the information provided by the chief under division (D)(3)(a) of	425
this section, the applicant shall publish a notice, at least once	426
a week for four consecutive weeks, in a newspaper of general	427
circulation in the county in which the proposed injection well is	428
to be located and, if available, in any local weekly news	429
publication that serves the township or municipal corporation in	430
which the proposed well is to be located. The font for the notice	431
shall be of a reasonable size. In addition, the notice shall	432
contain all of the following information:	433

(i) The name of the applicant;

434

(ii) A statement that the applicant intends to drill an	435
injection well;	436

(iii) A description of the location at which the proposed	437
well will be drilled;	438

(iv) The permit application number;

439

(v) The time, date, and location of the public hearing that	440
the chief will hold under division (D)(3)(b) of this section;	441

(vi) The location where a copy of the permit application may	442
be inspected.	443

(d) The chief shall provide a notice containing all of the	444
information required by division (D)(3)(c) of this section to all	445
of the following, as applicable:	446

(i) The board of county commissioners of the county in which	447
the proposed injection well is to be located;	448

(ii) The legislative authority of the municipal corporation	449
or the board of township trustees of the township in which the	450
proposed well is to be located;	451

(iii) Each private water company that has a well or a	452
reservoir that is located within a two-mile radius of the proposed	453
location of the well;	454

(iv) The board of directors of each conservancy district	455
established under Chapter 6101. of the Revised Code with	456
jurisdiction in the area in which the well is proposed to be	457
located, if applicable;	458

(v) Each planning commission with jurisdiction in the area in	459
which the well is proposed to be located;	460

(vi) Each state and federal legislator in whose legislative	461
district the well is proposed to be located.	462

An individual or entity that received a notice under division	463
(D)(3)(d) of this section may submit to the chief written comments	464
concerning the application with respect to the effects of the	465
operation of the proposed injection well on the environment that	466
are within the individual's or entity's area of responsibility.	467
The written comments shall be submitted to the chief not later	468
than thirty days after the individual's or entity's receipt of the	469
notice. If the chief receives such written comments concerning an	470
application, the chief immediately shall transmit a copy of the	471
comments to the applicant and post a copy of them on the	472
division's web site.	473

(e) Any person may submit a written comment or objection to	474
the chief with respect to an application submitted under division	475
(D)(1) of this section. A comment or objection shall be submitted	476
not later than ninety days after the date of the first publication	477
of the notice by the applicant under division (D)(3)(c) of this	478
section unless the chief grants an extension.	479

(4)(a) A person that submits an application for a permit	480
under division (D)(1) of this section shall conduct reflection	481
seismology at the location of the proposed injection well in order	482
to identify geologic features under the surface location of the	483
proposed injection well. The person shall submit the results of	484
the reflection seismology to the chief.	485

(b) As used in division (D)(4)(a) of this section, "geologic	486
features" means lateral stratigraphic changes, faults, fractures,	487
or other structural irregularities.	488

(5) The board of township trustees of the township or the	489
legislative authority of the municipal corporation, as applicable,	490
in which an injection well is proposed to be located for which an	491
application was submitted under division (D)(1) of this section	492
may adopt a resolution or enact an ordinance, as applicable,	493
objecting to the issuance of a permit for the well. The board or	494
the legislative authority may submit the resolution or ordinance	495
to the chief.	496

(6) The chief shall not issue a permit for an application	497
submitted under division (D)(1) of this section if any of the	498
following applies:	499

(a) The applicant has not submitted a waste analysis plan	500
under division (D)(2)(a) of this section.	501

(b) The chief has not approved the applicant's waste analysis	502
plan under division (D)(2)(b) of this section.	503

(c) The applicant has not conducted and submitted the results	504
of reflection seismology at the location of the proposed injection	505
well under division (D)(4) of this section.	506

(d) The chief has received within thirty days after the	507
public hearing required by division (D)(3)(b) of this section a	508
resolution or an ordinance under division (D)(5) of this section	509
objecting to the issuance of a permit for the well from the board	510
of township trustees of the township or the legislative authority	511
of the municipal corporation, as applicable, in which the proposed	512
injection well is to be located.	513

(7) To implement the goals of the Safe Drinking Water Act,	514
the chief shall not issue a permit for the injection of brine or	515
other waste substances resulting from, obtained from, or produced	516
in connection with oil or gas drilling, exploration, or production	517
unless the chief concludes that the applicant has demonstrated	518
that the injection will not result in the presence of any	519
contaminant in ground water that supplies or can reasonably be	520
expected to supply any public water system, such that the presence	521
of the contaminant may result in the system's not complying with	522
any national primary drinking water regulation or may otherwise	523
adversely affect the health of persons.	524

(E) The chief shall adopt rules in accordance with Chapter	525
119. of the Revised Code regarding the injection into wells of	526
brine and other waste substances resulting from, obtained from, or	527
produced in connection with oil or gas drilling, exploration, or	528
production. The rules shall require a person who has been issued a	529
permit under division (D) of this section for such a well to add a	530
stable benign chemical tracer into the well in an amount and at a	531
frequency that are determined by the chief for the purposes of	532
determining if brine and other waste substances that are injected	533
into the well have migrated and if impacts to ground water have	534
occurred from the operation of the well. The rules may authorize	535
tests to evaluate whether fluids or carbon dioxide may be injected	536
in a reservoir and to determine the maximum allowable injection	537
pressure, which shall be conducted in accordance with methods	538
prescribed in the rules or in accordance with conditions of the	539
permit. In addition, the rules shall include provisions regarding	540
applicationsall of the following:	541

(1) Applications for and issuance of the permits required by	542
this division (D) of this section; entry	543

(2) Entry to conduct inspections and to examine and copy	544
records to ascertain compliance with this divisionsection and	545
rules, orders, and terms and conditions of permits adopted or	546
issued under it; the	547

(3) The provision and maintenance of information through	548
monitoring, recordkeeping, and reporting; and other	549

(4) Other provisions in furtherance of the goals of this	550
section and the Safe Drinking Water Act. To implement the goals of	551
the Safe Drinking Water Act, the chief shall not issue a permit	552
for the injection of brine or other waste substances resulting	553
from, obtained from, or produced in connection with oil or gas	554
drilling, exploration, or production unless the chief concludes	555
that the applicant has demonstrated that the injection will not	556
result in the presence of any contaminant in ground water that	557
supplies or can reasonably be expected to supply any public water	558
system, such that the presence of the contaminant may result in	559
the system's not complying with any national primary drinking	560
water regulation or may otherwise adversely affect the health of	561
persons. This division	562

(F) Divisions (D) and (E) of this section and rules, orders,	563
and terms and conditions of permits adopted or issued under it	564
those divisions shall be construed to be no more stringent than	565
required for compliance with the Safe Drinking Water Act unless	566
essential to ensure that underground sources of drinking water	567
will not be endangered.	568

(E)(G) The owner holding a permit, or an assignee or	569
transferee who has assumed the obligations and liabilities imposed	570
by this chapter and any rules adopted or orders issued under it	571
pursuant to section 1509.31 of the Revised Code, and the operator	572
of a well shall be liable for a violation of this section or any	573
rules adopted or orders or terms or conditions of a permit issued	574
under it.	575

(F)(H) An owner shall replace the water supply of the holder	576
of an interest in real property who obtains all or part of the	577
holder's supply of water for domestic, agricultural, industrial,	578
or other legitimate use from an underground or surface source	579
where the supply has been substantially disrupted by	580
contamination, diminution, or interruption proximately resulting	581
from the owner's oil or gas operation, or the owner may elect to	582
compensate the holder of the interest in real property for the	583
difference between the fair market value of the interest before	584
the damage occurred to the water supply and the fair market value	585
after the damage occurred if the cost of replacing the water	586
supply exceeds this difference in fair market values. However,	587
during the pendency of any order issued under this division, the	588
owner shall obtain for the holder or shall reimburse the holder	589
for the reasonable cost of obtaining a water supply from the time	590
of the contamination, diminution, or interruption by the operation	591
until the owner has complied with an order of the chief for	592
compliance with this division or such an order has been revoked or	593
otherwise becomes not effective. If the owner elects to pay the	594
difference in fair market values, but the owner and the holder	595
have not agreed on the difference within thirty days after the	596
chief issues an order for compliance with this division, within	597
ten days after the expiration of that thirty-day period, the owner	598
and the chief each shall appoint an appraiser to determine the	599
difference in fair market values, except that the holder of the	600
interest in real property may elect to appoint and compensate the	601
holder's own appraiser, in which case the chief shall not appoint	602
an appraiser. The two appraisers appointed shall appoint a third	603
appraiser, and within thirty days after the appointment of the	604
third appraiser, the three appraisers shall hold a hearing to	605
determine the difference in fair market values. Within ten days	606
after the hearing, the appraisers shall make their determination	607
by majority vote and issue their final determination of the	608
difference in fair market values. The chief shall accept a	609
determination of the difference in fair market values made by	610
agreement of the owner and holder or by appraisers under this	611
division and shall make and dissolve orders accordingly. This	612
division does not affect in any way the right of any person to	613
enforce or protect, under applicable law, the person's interest in	614
water resources affected by an oil or gas operation.	615

(G)(I) In any action brought by the state for a violation of	616
division (A) of this section involving any well at which annular	617
disposal is used, there shall be a rebuttable presumption	618
available to the state that the annular disposal caused the	619
violation if the well is located within a one-quarter-mile radius	620
of the site of the violation.	621

(J) An owner who has been issued a permit for a well under	622
division (D) of this section and the operator of the well shall	623
allow the board of township trustees of the township or the	624
legislative authority of the municipal corporation, as applicable,	625
in which the injection well is located to remove a sample for	626
analysis from any container of brine or other waste substances	627
that is delivered to the well prior to injecting the brine or	628
other waste substances into the well.	629

Sec. 1509.221.  (A) No person, without first having obtained	630
a permit from the chief of the division of oil and gas resources	631
management, shall drill a well or inject a substance into a well	632
for the exploration for or extraction of minerals or energy, other	633
than oil or natural gas, including, but not limited to, the mining	634
of sulfur by the Frasch process, the solution mining of minerals,	635
the in situ combustion of fossil fuel, or the recovery of	636
geothermal energy to produce electric power, unless a rule of the	637
chief expressly authorizes the activity without a permit. The	638
permit shall be in addition to any permit required by section	639
1509.05 of the Revised Code. The chief shall adopt rules in	640
accordance with Chapter 119. of the Revised Code governing the	641
issuance of permits under this section. The rules shall include	642
provisions regarding the matters the applicant for a permit shall	643
demonstrate to establish eligibility for a permit; the form and	644
content of applications for permits; the terms and conditions of	645
permits; entry to conduct inspections and to examine and copy	646
records to ascertain compliance with this section and rules,	647
orders, and terms and conditions of permits adopted or issued	648
thereunder; provision and maintenance of information through	649
monitoring, recordkeeping, and reporting; and other provisions in	650
furtherance of the goals of this section and the Safe Drinking	651
Water Act. To implement the goals of the Safe Drinking Water Act,	652
the chief shall not issue a permit under this section, unless the	653
chief concludes that the applicant has demonstrated that the	654
drilling, injection of a substance, and extraction of minerals or	655
energy will not result in the presence of any contaminant in	656
underground water that supplies or can reasonably be expected to	657
supply any public water system, such that the presence of the	658
contaminant may result in the system's not complying with any	659
national primary drinking water regulation or may otherwise	660
adversely affect the health of persons. The chief may issue,	661
without a prior adjudication hearing, orders requiring compliance	662
with this section and rules, orders, and terms and conditions of	663
permits adopted or issued thereunder. This section and rules,	664
orders, and terms and conditions of permits adopted or issued	665
thereunder shall be construed to be no more stringent than	666
required for compliance with the Safe Drinking Water Act, unless	667
essential to ensure that underground sources of drinking water	668
will not be endangered.	669

(B)(1) There is levied on the owner of an injection well who	670
has been issued a permit under division (D) of section 1509.22 of	671
the Revised Code the following fees:	672

(a) Five cents per barrel of each substance that is delivered	673
to a well to be injected in the well when the substance is	674
produced within the division of oil and gas resources management	675
regulatory district in which the well is located or within an	676
adjoining oil and gas resources management regulatory district;	677

(b) Twenty cents per barrel of each substance that is	678
delivered to a well to be injected in the well when the substance	679
is not produced within the division of oil and gas resources	680
management regulatory district in which the well is located or	681
within an adjoining oil and gas resources management regulatory	682
district.	683

(2) The maximum number of barrels of substance per injection	684
well in a calendar year on which a fee may be levied under	685
division (B) of this section is five hundred thousand. If in a	686
calendar year the owner of an injection well receives more than	687
five hundred thousand barrels of substance to be injected in the	688
owner's well and if the owner receives at least one substance that	689
is produced within the division's regulatory district in which the	690
well is located or within an adjoining regulatory district and at	691
least one substance that is not produced within the division's	692
regulatory district in which the well is located or within an	693
adjoining regulatory district, the fee shall be calculated first	694
on all of the barrels of substance that are not produced within	695
the division's regulatory district in which the well is located or	696
within an adjoining district at the rate established in division	697
(B)(2) of this section. The fee then shall be calculated on the	698
barrels of substance that are produced within the division's	699
regulatory district in which the well is located or within an	700
adjoining district at the rate established in division (B)(1) of	701
this section until the maximum number of barrels established in	702
division (B)(2) of this section has been attainedThere is levied	703
on the owner of an injection well who has been issued a permit	704
under division (D) of section 1509.22 of the Revised Code an	705
additional fee of five cents per barrel of each substance that is	706
delivered to the well to be injected in the well.	707

(3) The owner of an injection well who is issued a permit	708
under division (D) of section 1509.22 of the Revised Code shall	709
collect the feefees levied by division (B) of this section on	710
behalf of the division of oil and gas resources management and	711
forward the feefees to the division. The chief shall transmit all	712
money received under division (B)(1) of this section to the	713
treasurer of state who shall deposit the money in the state	714
treasury to the credit of the oil and gas well fund created in	715
section 1509.02 of the Revised Code. The chief shall transmit all	716
money received under division (B)(2) of this section to the	717
treasurer of state who shall deposit the money in the state	718
treasury to the credit of the injection well ground water	719
monitoring fund created in section 1509.227 of the Revised Code.	720
The owner of an injection well who collects the feefees levied	721
by this division (B) of this section may retain up to three per	722
cent of the amount that is collected.	723

(4) The chief shall adopt rules in accordance with Chapter	724
119. of the Revised Code establishing requirements and procedures	725
for collection of the feefees levied by division (B) of this	726
section.	727

(C) In an action under section 1509.04 or 1509.33 of the	728
Revised Code to enforce this section, the court shall grant	729
preliminary and permanent injunctive relief and impose a civil	730
penalty upon the showing that the person against whom the action	731
is brought has violated, is violating, or will violate this	732
section or rules, orders, or terms or conditions of permits	733
adopted or issued thereunder. The court shall not require, prior	734
to granting such preliminary and permanent injunctive relief or	735
imposing a civil penalty, proof that the violation was, is, or	736
will be the result of intentional conduct or negligence. In any	737
such action, any person may intervene as a plaintiff upon the	738
demonstration that the person has an interest that is or may be	739
adversely affected by the activity for which injunctive relief or	740
a civil penalty is sought.	741

Sec. 1509.227. (A) There is hereby created in the state	742
treasury the injection well ground water monitoring fund	743
consisting of money credited to it under section 1509.221 of the	744
Revised Code. The chief of the division of oil and gas resources	745
management shall administer the fund and shall use money credited	746
to it solely to conduct ground water monitoring in accordance with	747
rules adopted under division (B) of this section.	748

(B) The chief shall adopt rules in accordance with Chapter	749
119. of the Revised Code establishing requirements for the	750
installation of ground water monitoring wells and the monitoring	751
of ground water quality and quantity prior to the commencement of	752
drilling of a well for which a permit is issued under division (D)	753
of section 1509.22 of the Revised Code and during the injection of	754
brine or other waste substances into such a well. The rules shall	755
require that ground water monitoring be capable of determining	756
impacts resulting from the operation of the injection well. In	757
addition, the rules shall establish requirements governing ground	758
water assessment and corrective actions for impacts to ground	759
water. Further, the rules shall require that the owner of an	760
injection well submit to the chief a monitoring report that has	761
been prepared by a qualified ground water scientist and that	762
includes all of the following:	763

(1) A determination of any impacts to ground water from the	764
migration of contaminants from the injection well;	765

(2) A list of the contaminants from the injection well that	766
may be causing contamination of ground water;	767

(3) Recommendations for actions, if any, that should be taken	768
to investigate or remediate the source of any ground water	769
contamination.	770

Sec. 1509.228. (A) An application for a permit for an	771
injection well that is submitted under section 1509.22 of the	772
Revised Code shall include all of the following:	773

(1) A listing of all injection wells that the owner of the	774
proposed new injection well or a key employee of the owner has	775
operated or is operating in this state;	776

(2) A listing of the injection wells that the owner or a key	777
employee of the owner has operated or is operating elsewhere in	778
the United States together with a listing of the injection wells	779
that the owner or a key employee of the owner has operated or is	780
operating outside the United States;	781

(3) A listing of all administrative enforcement orders issued	782
to the owner or a key employee of the owner, all civil actions in	783
which the owner or a key employee of the owner was determined by	784
the trier of fact to be liable in damages or was the subject of	785
injunctive relief or another type of civil relief, and all	786
criminal actions in which the owner or a key employee of the owner	787
pleaded guilty or was convicted, during the ten years immediately	788
preceding the submission of the application, in connection with	789
any violation by the owner or a key employee of the owner of an	790
applicable state or federal law pertaining to oil and gas	791
operations or environmental protection or the laws of another	792
country pertaining to oil and gas operations or environmental	793
protection;	794

(4) A listing of all administrative enforcement orders, civil	795
actions, or criminal actions pending at the time of the submission	796
of the application for a permit for an injection well in	797
connection with a violation of any applicable state or federal law	798
pertaining to oil and gas operations or environmental protection	799
that was alleged to have been committed by the owner or a key	800
employee of the owner.	801

The lists of injection wells operated by the owner or a key	802
employee of the owner within or outside this state or outside the	803
United States shall include all such injection wells operated by	804
the owner or a key employee of the owner during the ten-year	805
period immediately preceding the submission of the application.	806

(B) If the applicant for a permit for an injection well has	807
been involved in any prior activity involving the operation of an	808
injection well, the chief of the division of oil and gas resources	809
management may deny the application if the chief finds from the	810
application, the information submitted under divisions (A)(1) to	811
(4) of this section, pertinent information submitted to the chief,	812
and other pertinent information obtained by the chief at the	813
chief's discretion that the applicant or any other person listed	814
on the application, in the operation of injection wells, has a	815
history of substantial noncompliance with state and federal laws	816
pertaining to oil and gas operations or environmental protection	817
or the laws of another country pertaining to oil and gas	818
operations or environmental protection that indicates that the	819
applicant lacks sufficient reliability, expertise, and competence	820
to operate the proposed new injection well in substantial	821
compliance with this chapter and rules adopted under it.	822

(C) An owner that has submitted the information required	823
under division (A) of this section annually shall submit to the	824
chief all information required to be submitted under division (A)	825
of this section that has changed or been added in the immediately	826
preceding year. If, during that period, there have been no changes	827
in or additions to that information, the owner shall submit to the	828
chief an affidavit stating that there have been no changes in or	829
additions to that information during that time period. The chief	830
may revoke the permit for the injection well if the updated	831
information indicates any of the reasons specified in division (B)	832
of this section for the denial of an application for a permit for	833
an injection well.	834

(D) When the owner of an injection well employs a new key	835
employee, the owner shall submit or shall require the new key	836
employee to submit to the chief information regarding the new key	837
employee that is required to be submitted under division (A) of	838
this section by an applicant for a permit for an injection well.	839
The chief may revoke the permit for the injection well if the	840
information regarding the new key employee indicates any of the	841
reasons specified in division (B) of this section for the denial	842
of an application for a permit for an injection well.	843

(E) As used in this section:

844

(1) "Injection well" means a well for which an application	845
for a permit has been submitted under division (D) of section	846
1509.22 of the Revised Code.	847

(2) "Key employee" means an individual employed by an	848
applicant for a permit for an injection well in a supervisory	849
capacity or who is empowered to make discretionary decisions with	850
respect to the injection well operations of the applicant, but	851
does not include an employee who is exclusively engaged in the	852
physical or mechanical transportation or disposal of brine or	853
other waste substances. If the applicant has entered into a	854
contract with another person to operate the injection well that is	855
the subject of the application, "key employee" includes an	856
employee of the contractor who acts in a supervisory capacity or	857
is empowered to make discretionary decisions with respect to the	858
operation of the injection well.	859

Sec. 1509.31.  (A) Whenever the entire interest of an oil and	860
gas lease is assigned or otherwise transferred, the assignor or	861
transferor shall notify the holders of the royalty interests, and,	862
if a well or wells exist on the lease, the division of oil and gas	863
resources management, of the name and address of the assignee or	864
transferee by certified mail, return receipt requested, not later	865
than thirty days after the date of the assignment or transfer.	866
When notice of any such assignment or transfer is required to be	867
provided to the division, it shall be provided on a form	868
prescribed and provided by the division and verified by both the	869
assignor or transferor and by the assignee or transferee and shall	870
be accompanied by a nonrefundable fee of one hundred dollars for	871
each well. The notice form applicable to assignments or transfers	872
of a well to the owner of the surface estate of the tract on which	873
the well is located shall contain a statement informing the	874
landowner that the well may require periodic servicing to maintain	875
its productivity; that, upon assignment or transfer of the well to	876
the landowner, the landowner becomes responsible for compliance	877
with the requirements of this chapter and rules adopted under it,	878
including, without limitation, the proper disposal of brine	879
obtained from the well, the plugging of the well when it becomes	880
incapable of producing oil or gas, and the restoration of the well	881
site; and that, upon assignment or transfer of the well to the	882
landowner, the landowner becomes responsible for the costs of	883
compliance with the requirements of this chapter and rules adopted	884
under it and the costs for operating and servicing the well.	885

(B) When the entire interest of a well is proposed to be	886
assigned or otherwise transferred to the landowner for use as an	887
exempt domestic well, the owner who has been issued a permit under	888
this chapter for the well shall submit to the chief of the	889
division of oil and gas resources management an application for	890
the assignment or transfer that contains all documents that the	891
chief requires and a nonrefundable fee of one hundred dollars. The	892
application for such an assignment or transfer shall be prescribed	893
and provided by the chief. The chief may approve the application	894
if the application is accompanied by a release of all of the oil	895
and gas leases that are included in the applicable formation of	896
the drilling unit, the release is in a form such that the well	897
ownership merges with the fee simple interest of the surface	898
tract, and the release is in a form that may be recorded. However,	899
if the owner of the well does not release the oil and gas leases	900
associated with the well that is proposed to be assigned or	901
otherwise transferred or if the fee simple tract that results from	902
the merger of the well ownership with the fee simple interest of	903
the surface tract is less than five acres, the proposed exempt	904
domestic well owner shall post a five thousand dollar bond with	905
the division prior to the assignment or transfer of the well to	906
ensure that the well will be properly plugged. The chief, for good	907
cause, may modify the requirements of this section governing the	908
assignment or transfer of the interests of a well to the	909
landowner. Upon the assignment or transfer of the well, the owner	910
of an exempt domestic well is not subject to the severance tax	911
levied under section 5749.02 of the Revised Code, but is subject	912
to all applicable fees established in this chapter.	913

(C) The owner holding a permit under section 1509.05 of the	914
Revised Code is responsible for all obligations and liabilities	915
imposed by this chapter and any rules, orders, and terms and	916
conditions of a permit adopted or issued under it, and no	917
assignment or transfer by the owner relieves the owner of the	918
obligations and liabilities until and unless the assignee or	919
transferee files with the division the information described in	920
divisions (A)(1), (2), (3), (4), (5), (10), (11), and (12)(13) of	921
section 1509.06 of the Revised Code; obtains liability insurance	922
coverage required by section 1509.07 of the Revised Code, except	923
when none is required by that section; and executes and files a	924
surety bond, negotiable certificates of deposit or irrevocable	925
letters of credit, or cash, as described in that section. Instead	926
of a bond, but only upon acceptance by the chief, the assignee or	927
transferee may file proof of financial responsibility, described	928
in section 1509.07 of the Revised Code. Section 1509.071 of the	929
Revised Code applies to the surety bond, cash, and negotiable	930
certificates of deposit and irrevocable letters of credit	931
described in this section. Unless the chief approves a	932
modification, each assignee or transferee shall operate in	933
accordance with the plans and information filed by the permit	934
holder pursuant to section 1509.06 of the Revised Code.	935

(D) If a mortgaged property that is being foreclosed is	936
subject to an oil or gas lease, pipeline agreement, or other	937
instrument related to the production or sale of oil or natural gas	938
and the lease, agreement, or other instrument was recorded	939
subsequent to the mortgage, and if the lease, agreement, or other	940
instrument is not in default, the oil or gas lease, pipeline	941
agreement, or other instrument, as applicable, has priority over	942
all other liens, claims, or encumbrances on the property so that	943
the oil or gas lease, pipeline agreement, or other instrument is	944
not terminated or extinguished upon the foreclosure sale of the	945
mortgaged property. If the owner of the mortgaged property was	946
entitled to oil and gas royalties before the foreclosure sale, the	947
oil or gas royalties shall be paid to the purchaser of the	948
foreclosed property.	949

Section 2. That existing sections 1509.02, 1509.06, 1509.22,	950
1509.221, and 1509.31 of the Revised Code are hereby repealed.	951