Bill Text: IL SB1715 | 2013-2014 | 98th General Assembly | Amended
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Amends the Weights and Measures Act. Provides that weights and measures or weighing and measuring devices used for commercial or law enforcement purposes must have a Certificate of Conformance or have been certified by the Department or the city sealer on or before July 1, 2012. Provides that any apparatus certified by the Department or city sealer as of July 1, 2012 satisfies construction and installation requirements. Provides that the Department shall furnish an identification plate for registration and tracking purposes for any type of weight or measure or weighing or measuring device is impracticable to mark as required by the Act. Effective immediately.
Spectrum: Moderate Partisan Bill (Republican 40-13)
Status: (Passed) 2013-06-17 - Public Act . . . . . . . . . 98-0022 [SB1715 Detail]
Download: Illinois-2013-SB1715-Amended.html
Bill Title: Amends the Weights and Measures Act. Provides that weights and measures or weighing and measuring devices used for commercial or law enforcement purposes must have a Certificate of Conformance or have been certified by the Department or the city sealer on or before July 1, 2012. Provides that any apparatus certified by the Department or city sealer as of July 1, 2012 satisfies construction and installation requirements. Provides that the Department shall furnish an identification plate for registration and tracking purposes for any type of weight or measure or weighing or measuring device is impracticable to mark as required by the Act. Effective immediately.
Spectrum: Moderate Partisan Bill (Republican 40-13)
Status: (Passed) 2013-06-17 - Public Act . . . . . . . . . 98-0022 [SB1715 Detail]
Download: Illinois-2013-SB1715-Amended.html
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1 | AMENDMENT TO SENATE BILL 1715
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2 | AMENDMENT NO. ______. Amend Senate Bill 1715 by replacing | ||||||
3 | everything after the enacting clause with the following:
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4 | "ARTICLE 1. | ||||||
5 | Section 1-1. Short title. This Act may be cited as the | ||||||
6 | Hydraulic Fracturing Regulatory Act.
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7 | Section 1-5. Definitions. For the purposes of this Act, | ||||||
8 | unless the context otherwise requires: | ||||||
9 | "Agency" means the Illinois Environmental Protection | ||||||
10 | Agency. | ||||||
11 | "Aquatic life" means all fish, reptiles, amphibians, | ||||||
12 | crayfish, and mussels. | ||||||
13 | "Aquifer" means saturated (with groundwater) soils and | ||||||
14 | geologic materials that are sufficiently permeable to readily | ||||||
15 | yield economically useful quantities (at least 70 gallons per |
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1 | minute) of fresh water to wells, springs, or streams under | ||||||
2 | ordinary hydraulic gradients.
"Aquifer" is limited to aquifers | ||||||
3 | identified as major sand and gravel aquifers in the Illinois | ||||||
4 | State Water Survey's Illinois Community Water Supply Wells map, | ||||||
5 | Map Series 2006-01. | ||||||
6 | "Base fluid" means the continuous phase fluid type, | ||||||
7 | including, but not limited to, water used in a high volume | ||||||
8 | horizontal hydraulic fracturing operation.
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9 | "BTEX" means benzene, toluene, ethylbenzene, and xylene.
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10 | "Chemical" means any element, chemical compound, or | ||||||
11 | mixture of elements or compounds that has its own specific name | ||||||
12 | or identity, such as a Chemical Abstracts Service number, | ||||||
13 | regardless of whether the chemical is subject to the | ||||||
14 | requirements of paragraph (2) of subsection (g) of 29 Code of | ||||||
15 | Federal Regulations §1910.1200.
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16 | "Chemical Abstracts Service" means the division of the | ||||||
17 | American Chemical Society that is the globally recognized | ||||||
18 | authority for information on chemical substances.
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19 | "Chemical Abstracts Service number" or "CAS number" means | ||||||
20 | the unique identification number assigned to a chemical by the | ||||||
21 | Chemical Abstracts Service.
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22 | "Completion combustion device" means any ignition device, | ||||||
23 | installed horizontally or vertically, used in exploration and | ||||||
24 | production operations to combust otherwise vented emissions. | ||||||
25 | "Delineation well" means a well drilled in order to | ||||||
26 | determine the boundary of a field or producing reservoir. |
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1 | "Department" means the Illinois Department of Natural | ||||||
2 | Resources.
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3 | "Diesel" means a substance having any one of the following | ||||||
4 | Chemical Abstracts Service Registry numbers: 68334-30-5; | ||||||
5 | 68476-34-6; 68476-30-2; 68476-31-3; 8008-20-6; or 68410-00-4. | ||||||
6 | "Diesel" includes any additional substances regulated by the | ||||||
7 | United States Environmental Protection Agency as diesel fuel | ||||||
8 | used in hydraulic fracturing activities under the federal Safe | ||||||
9 | Drinking Water Act. | ||||||
10 | "Director" means the Director of Natural Resources.
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11 | "Enhanced oil recovery operation" means any secondary or | ||||||
12 | tertiary recovery method used in an effort to recover | ||||||
13 | hydrocarbons from a pool by injection of fluids, gases or other | ||||||
14 | substances to maintain, restore, or augment natural reservoir | ||||||
15 | energy, or by introducing gases, chemicals, other substances, | ||||||
16 | or heat, or by in-situ combustion, or by any combination | ||||||
17 | thereof. | ||||||
18 | "Flare" means a thermal oxidation system using an open, | ||||||
19 | enclosed, or semi-enclosed flame. "Flare" does not include | ||||||
20 | completion combustion devices as defined in this Section.
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21 | "Flowback period" means the process of allowing fluids to | ||||||
22 | flow from a well following a treatment, either in preparation | ||||||
23 | for a subsequent phase of treatment or in preparation for | ||||||
24 | cleanup and returning the well to production. "Flowback period" | ||||||
25 | begins when the material the hydraulic fracturing fluid returns | ||||||
26 | to the surface following hydraulic fracturing or |
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1 | re-fracturing. "Flowback period" ends with either well shut in | ||||||
2 | or when the well is producing continuously to the flow line or | ||||||
3 | to a storage vessel for collection, whichever occurs first.
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4 | "Fresh water" means surface and subsurface water in its | ||||||
5 | natural state that is suitable for drinking water for human | ||||||
6 | consumption, domestic livestock, irrigation, industrial, | ||||||
7 | municipal and recreational purposes, that is capable of | ||||||
8 | supporting aquatic life, and contains less than 10,000 ppm | ||||||
9 | total dissolved solids.
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10 | "Gas" means all natural gas, including casinghead gas, and | ||||||
11 | all other natural hydrocarbons not defined as oil.
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12 | "Groundwater" means any water below the land surface that | ||||||
13 | is within the saturated zone or geologic materials where the | ||||||
14 | fluid pressure in the pore space is equal to or greater than | ||||||
15 | atmospheric pressure.
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16 | "Health professional" means a physician, physician | ||||||
17 | assistant, nurse practitioner, a registered professional | ||||||
18 | nurse, emergency medical technician, or other individual | ||||||
19 | appropriately licensed or registered to provide health care | ||||||
20 | services.
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21 | "High volume horizontal hydraulic fracturing operations" | ||||||
22 | means all stages of a stimulation treatment of a horizontal | ||||||
23 | well as defined by this Act by the pressurized application of | ||||||
24 | more than 80,000 gallons per stage or more than 300,000 gallons | ||||||
25 | total of hydraulic fracturing fluid and proppant to initiate or | ||||||
26 | propagate fractures in a geologic formation to enhance |
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1 | extraction or production of oil or gas.
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2 | "High volume horizontal hydraulic fracturing permit" means | ||||||
3 | the permit issued by the Department under this Act allowing | ||||||
4 | high volume horizontal hydraulic fracturing operations to | ||||||
5 | occur at a well site.
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6 | "High volume horizontal hydraulic fracturing treatment" | ||||||
7 | shall have the same definition as "High volume horizontal | ||||||
8 | hydraulic fracturing operations".
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9 | "Horizontal well" means a well with a wellbore drilled | ||||||
10 | laterally at an angle of at least 80 degrees to the vertical | ||||||
11 | and with a horizontal projection exceeding 100 feet measured | ||||||
12 | from the initial point of penetration into the productive | ||||||
13 | formation through the terminus of the lateral in the same | ||||||
14 | common source of hydrocarbon supply.
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15 | "Hydraulic fracturing additive" means any chemical | ||||||
16 | substance or combination of chemicals, including, but not | ||||||
17 | limited to, any chemical or proppant that is added to a base | ||||||
18 | fluid for the purposes of preparing a hydraulic fracturing | ||||||
19 | fluid for a high volume horizontal hydraulic fracturing | ||||||
20 | operation.
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21 | "Hydraulic fracturing flowback" means all hydraulic | ||||||
22 | fracturing fluid and other fluids that return to the surface | ||||||
23 | after a stage of high volume horizontal hydraulic fracturing | ||||||
24 | operations has been completed and prior to the well being | ||||||
25 | placed in production.
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26 | "Hydraulic fracturing fluid" means the mixture of the base |
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1 | fluid and all the hydraulic fracturing additives, used to | ||||||
2 | perform high volume horizontal hydraulic fracturing.
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3 | "Hydraulic fracturing string" means any pipe or casing | ||||||
4 | string used for the transport of hydraulic fracturing fluids | ||||||
5 | during the conduct of the high volume horizontal hydraulic | ||||||
6 | fracturing operations.
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7 | "Intake" means a pipe or other means to withdraw raw water | ||||||
8 | from a water source.
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9 | "Landowner" means the legal title holder or owner of real | ||||||
10 | property and includes an owner of an undivided interest, a life | ||||||
11 | tenant, a remainderman, a public or private corporation, a | ||||||
12 | trustee under an active trust, and the holder of the beneficial | ||||||
13 | interest under a land trust. "Landowner" does not include a | ||||||
14 | mortgagee, a trustee under a trust deed in the nature of a | ||||||
15 | mortgage, a lien holder, or a lessee.
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16 | "Low pressure well" means a well with reservoir pressure | ||||||
17 | and vertical well depth such that 0.445 times the reservoir | ||||||
18 | pressure (in psia) minus 0.038 times the vertical well depth | ||||||
19 | (in feet) minus 67.578 psia is less than the flow line pressure | ||||||
20 | at the sales meter. | ||||||
21 | "Nature preserve" shall have the same meaning as provided | ||||||
22 | in Section 3.11 of the Illinois Natural Areas Preservation Act.
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23 | "Oil" means natural crude oil or petroleum and other | ||||||
24 | hydrocarbons, regardless of gravity, which are produced at the | ||||||
25 | well in liquid form by ordinary production methods or by the | ||||||
26 | use of an oil and gas separator and which are not the result of |
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1 | condensation of gas after it leaves the underground reservoir.
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2 | "Operator" means the individual or entity controlling the | ||||||
3 | right to drill or produce a horizontal well in accordance with | ||||||
4 | the requirements of the Illinois Oil and Gas Act.
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5 | "Owner" shall have the same meaning as provided in Section | ||||||
6 | 1 of the Illinois Oil and Gas Act.
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7 | "Perennial stream" means a stream that has continuous flow | ||||||
8 | in its stream bed during all of the calendar year. | ||||||
9 | "Permit" means a high volume horizontal hydraulic | ||||||
10 | fracturing permit.
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11 | "Permittee" means a person holding a high volume horizontal | ||||||
12 | hydraulic fracturing permit under this Act.
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13 | "Person" means any individual, partnership, | ||||||
14 | co-partnership, firm, company, limited liability company, | ||||||
15 | corporation, association, joint stock company, trust, estate, | ||||||
16 | political subdivision, state agency, or any other legal entity | ||||||
17 | or their legal representative, agent, or assigns.
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18 | "Pollution or diminution" means: | ||||||
19 | (1) in groundwater, any of the following:
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20 | (A) detection of benzene or any other carcinogen in | ||||||
21 | any Class I, Class II, or Class III groundwater;
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22 | (B) detection of any constituent in item (i) of | ||||||
23 | subparagraph (A) of paragraph (3) of subsection (a) of | ||||||
24 | 35 Ill. Adm. Code 620.310 equal to or above the listed | ||||||
25 | preventive response criteria in any Class I, Class II, | ||||||
26 | or Class III groundwater;
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1 | (C) detection of any constituent in 35 Ill. Adm. | ||||||
2 | Code 620.410 (a), (b), (c), (d) or (e) equal to or | ||||||
3 | above the listed standard in any Class I, Class II, or | ||||||
4 | Class III groundwater;
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5 | (D) detection of any constituent in Class III | ||||||
6 | groundwater equal to or above a standard established | ||||||
7 | under 35 Ill. Adm. Code 620.260; or
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8 | (E) detection of any constituent in Class I, Class | ||||||
9 | II, or Class III groundwater equal to or above a | ||||||
10 | cleanup objective listed in 35 Ill. Adm. Code 742.
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11 | (2) in surface water, exceeding any applicable numeric | ||||||
12 | or narrative standard in 35 Ill. Adm. Code Part 302 or Part | ||||||
13 | 304.
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14 | "Produced water" means water, regardless of chloride and | ||||||
15 | total dissolved solids content, that is produced in conjunction | ||||||
16 | with oil or natural gas production or natural gas storage | ||||||
17 | operations, but does not include hydraulic fracturing | ||||||
18 | flowback.
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19 | "Proppant" means sand or any natural or man-made material | ||||||
20 | that is used during high volume horizontal hydraulic fracturing | ||||||
21 | operations to prop open the artificially created or enhanced | ||||||
22 | fractures.
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23 | "Public water supply" means all mains, pipes, and | ||||||
24 | structures through which water is obtained and distributed to | ||||||
25 | the public, including wells and well structures, intakes and | ||||||
26 | cribs, pumping stations, treatment plants, reservoirs, and |
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1 | storage tanks and appurtenances, collectively or severally, | ||||||
2 | actually used or intended for use for the purpose of furnishing | ||||||
3 | water for drinking or general domestic use, and which serves at | ||||||
4 | least 15 service connections or which regularly serves at least | ||||||
5 | 25 persons at least 60 days per year.
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6 | "Register of Land and Water Reserves" means the list of | ||||||
7 | areas registered in accordance with Section 16 of the Illinois | ||||||
8 | Natural Areas Preservation Act and Part 4010 of Title 17 of the | ||||||
9 | Illinois Administrative Code.
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10 | "Release" means any spilling, leaking, pumping, pouring, | ||||||
11 | emitting, emptying, discharging, injecting, escaping, | ||||||
12 | leaching, dumping, or disposing into the environment.
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13 | "Serious violation" means any violation set forth in 62 | ||||||
14 | Ill. Adm. Code 240.140(c).
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15 | "Service connection" means the opening, including all | ||||||
16 | fittings and appurtenances, at the water main through which | ||||||
17 | water is supplied to the user.
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18 | "Surface water" means all water that is open to the | ||||||
19 | atmosphere and subject to surface runoff.
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20 | "Total water volume" means the total quantity of water from | ||||||
21 | all sources used in the high volume horizontal hydraulic | ||||||
22 | fracturing operations, including surface water, groundwater, | ||||||
23 | produced water, or recycled water.
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24 | "True vertical depth" or "TVD" means the vertical distance | ||||||
25 | from a depth in a planned or existing wellbore or well to a | ||||||
26 | point at the surface.
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1 | "Water pollution" means any alteration of the physical, | ||||||
2 | thermal, chemical, biological, or radioactive properties of | ||||||
3 | any waters of the State, or the discharge of any contaminant | ||||||
4 | into any water of the State, as will or is likely to create a | ||||||
5 | nuisance or render the waters harmful, detrimental, or | ||||||
6 | injurious to public health, safety, or welfare, or to domestic, | ||||||
7 | commercial, industrial, agricultural, recreational, or other | ||||||
8 | legitimate uses, or to livestock, wild animals, birds, or fish | ||||||
9 | or other aquatic life.
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10 | "Water source" means (1) any existing water well or | ||||||
11 | developed spring used for human or domestic animal consumption, | ||||||
12 | or (2) any river, perennial stream, aquifer, natural or | ||||||
13 | artificial lake, pond, wetland listed on the Register of Land | ||||||
14 | and Water Reserves, or reservoir.
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15 | "Well" means any drill hole required to be permitted under | ||||||
16 | the Illinois Oil and Gas Act.
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17 | "Well site" means surface areas, including the well, | ||||||
18 | occupied by all equipment or facilities necessary for or | ||||||
19 | incidental to high volume horizontal hydraulic fracturing | ||||||
20 | operations, drilling, production, or plugging a well.
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21 | "Wildcat well" means a well outside known fields or the | ||||||
22 | first well drilled in an oil or gas field where no other oil | ||||||
23 | and gas production exists. | ||||||
24 | "Wildlife" means any bird or mammal that are by nature wild | ||||||
25 | by way of distinction from those that are naturally tame and | ||||||
26 | are ordinarily living unconfined in a state of nature without |
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1 | the care of man.
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2 | Section 1-10. Intergovernmental cooperation. The | ||||||
3 | Department shall have the primary authority to administer the | ||||||
4 | provisions of this Act. The Illinois State Geological Survey, | ||||||
5 | the Illinois State Water Survey, the Office of the State Fire | ||||||
6 | Marshal, and the Agency shall be advised of high volume | ||||||
7 | horizontal hydraulic fracturing permit applications received | ||||||
8 | by the Department and lend assistance as required by the | ||||||
9 | provisions of this Act.
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10 | Section 1-15. Powers and duties. | ||||||
11 | (a) Except as otherwise provided, the Department shall | ||||||
12 | enforce this Act and all rules and orders adopted in accordance | ||||||
13 | with this Act.
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14 | (b) Except as otherwise provided, the Department shall have | ||||||
15 | jurisdiction and authority over all persons and property | ||||||
16 | necessary to enforce the provisions of this Act effectively. In | ||||||
17 | aid of this jurisdiction, the Director, or anyone designated in | ||||||
18 | writing by the Director, shall have the authority to administer | ||||||
19 | oaths and to issue subpoenas for the production of records or | ||||||
20 | other documents and for the attendance of witnesses at any | ||||||
21 | proceedings of the Department.
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22 | (c) The Department may authorize any employee of the | ||||||
23 | Department, qualified by training and experience, to perform | ||||||
24 | the powers and duties set forth in this Act.
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1 | (d) For the purpose of determining compliance with the | ||||||
2 | provisions of this Act and any orders or rules entered or | ||||||
3 | adopted under this Act, the Department shall have the right at | ||||||
4 | all times to go upon and inspect properties where high volume | ||||||
5 | horizontal hydraulic fracturing operations are being or have | ||||||
6 | been conducted.
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7 | (e) The Department shall make any inquiries as it may deem | ||||||
8 | proper to determine whether a violation of this Act or any | ||||||
9 | orders or rules entered or adopted under this Act exists or is | ||||||
10 | imminent. In the exercise of these powers, the Department shall | ||||||
11 | have the authority to collect data; require testing and | ||||||
12 | sampling; to make investigation and inspections; to examine | ||||||
13 | properties, including records and logs; to examine, check, and | ||||||
14 | test hydrocarbon wells; to hold hearings; to adopt | ||||||
15 | administrative rules; and to take any action as may be | ||||||
16 | reasonably necessary to enforce this Act.
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17 | (f) Except as otherwise provided, the Department may | ||||||
18 | specify the manner in which all information required to be | ||||||
19 | submitted under this Act is submitted.
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20 | Section 1-20. Applicability. Except as provided in Section | ||||||
21 | 1-98 of this Act, this Act applies to all wells where high | ||||||
22 | volume horizontal hydraulic fracturing operations are planned, | ||||||
23 | have occurred, or are occurring in this State. The provisions | ||||||
24 | of this Act shall be in addition to the provisions of the | ||||||
25 | Illinois Oil and Gas Act. However, if there is a conflict, the |
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1 | provisions of the Illinois Oil and Gas Act are superseded by | ||||||
2 | this Act.
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3 | Section 1-25. Setbacks and prohibitions. | ||||||
4 | (a) Except as otherwise provided in this Section, no well | ||||||
5 | site where high volume horizontal hydraulic fracturing | ||||||
6 | operations are proposed, planned, or occurring may be located | ||||||
7 | as follows. Unless specified otherwise, all distances shall be | ||||||
8 | measured from the closest edge of the well site:
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9 | (1) within 500 feet measured horizontally from any | ||||||
10 | residence or place of worship unless the owner of the | ||||||
11 | residence or the governing body of the place of worship | ||||||
12 | otherwise expressly agrees in writing to a closer well | ||||||
13 | location;
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14 | (2) within 500 feet measured horizontally from the edge | ||||||
15 | of the property line from any school, hospital, or licensed | ||||||
16 | nursing home facility;
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17 | (3) within 500 feet measured horizontally from the | ||||||
18 | surface location of any existing water well or developed | ||||||
19 | spring used for human or domestic animal consumption, | ||||||
20 | unless the owner or owners of the well or developed spring | ||||||
21 | otherwise expressly agrees or agree in writing to a closer | ||||||
22 | well location;
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23 | (4) within 300 feet measured horizontally from the | ||||||
24 | center of a perennial stream or from the ordinary high | ||||||
25 | water mark of any river, natural or artificial lake, pond, |
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1 | or reservoir;
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2 | (5) within 750 feet of a nature preserve or a site on | ||||||
3 | the Register of Land and Water Reserves;
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4 | (6) within 1,500 feet of a surface water or groundwater | ||||||
5 | intake of a public water supply; the distance from the | ||||||
6 | public water supply as identified by the Department shall | ||||||
7 | be measured as follows:
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8 | (A) For a surface water intake on a lake or | ||||||
9 | reservoir, the distance shall be measured from the | ||||||
10 | intake point on the lake or reservoir. | ||||||
11 | (B) For a surface water intake on a flowing stream, | ||||||
12 | the distance shall be measured from a semicircular | ||||||
13 | radius extending upstream of the surface water intake. | ||||||
14 | (C) For a groundwater source, the distance shall be | ||||||
15 | measured from the surface location of the wellhead or | ||||||
16 | the ordinary high water mark of the spring.
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17 | The distance restrictions under this subsection (a) shall | ||||||
18 | be determined as conditions exist at the time of the submission | ||||||
19 | of the permit application under this Act. | ||||||
20 | (b) Notwithstanding any other provision of this Section, | ||||||
21 | the owner of a water source identified in paragraph (4) of | ||||||
22 | subsection (a) of this Section that is wholly contained within | ||||||
23 | the owner's property may expressly agree in writing to a closer | ||||||
24 | well location.
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25 | (c) It is unlawful to inject or discharge hydraulic | ||||||
26 | fracturing fluid, produced water, BTEX, diesel, or petroleum |
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1 | distillates into fresh water.
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2 | (d) It is unlawful to perform any high volume horizontal | ||||||
3 | hydraulic fracturing operations by knowingly or recklessly | ||||||
4 | injecting diesel.
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5 | Section 1-30. High volume horizontal hydraulic fracturing | ||||||
6 | permit required. | ||||||
7 | (a) Notwithstanding any other provision of law, a person | ||||||
8 | may not drill, deepen, or convert a horizontal well where high | ||||||
9 | volume horizontal hydraulic fracturing operations are planned | ||||||
10 | or occurring or convert a vertical well into a horizontal well | ||||||
11 | where high volume horizontal hydraulic fracturing operations | ||||||
12 | are planned in this State, unless the person has been issued a | ||||||
13 | permit by the Department under this Act and has obtained all | ||||||
14 | applicable authorizations required by the Illinois Oil and Gas | ||||||
15 | Act.
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16 | (b) If multiple wells are to be stimulated using high | ||||||
17 | volume horizontal hydraulic fracturing operations from a | ||||||
18 | single well site, then a separate permit shall be obtained for | ||||||
19 | each well at the site.
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20 | Section 1-35. High volume horizontal hydraulic fracturing | ||||||
21 | permit application. | ||||||
22 | (a) Every applicant for a permit under this Act shall first | ||||||
23 | register with the Department at least 30 days before applying | ||||||
24 | for a permit. The Department shall make available a |
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1 | registration form within 90 days after the effective date of | ||||||
2 | this Act. The registration form shall require the following | ||||||
3 | information:
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4 | (1) the name and address of the registrant and any | ||||||
5 | parent, subsidiary, or affiliate thereof;
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6 | (2) disclosure of all findings of a serious violation | ||||||
7 | or an equivalent violation under federal or state laws or | ||||||
8 | regulations in the development or operation of an oil or | ||||||
9 | gas exploration or production site via hydraulic | ||||||
10 | fracturing by the applicant or any parent, subsidiary, or | ||||||
11 | affiliate thereof within the previous 5 years; and
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12 | (3) proof of insurance to cover injuries, damages, or | ||||||
13 | loss related to pollution or diminution in the amount of at | ||||||
14 | least $5,000,000, from an insurance carrier authorized, | ||||||
15 | licensed, or permitted to do this insurance business in | ||||||
16 | this State that holds at least an A- rating by A.M. Best & | ||||||
17 | Co. or any comparable rating service.
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18 | A registrant must notify the Department of any change in | ||||||
19 | the information identified in paragraphs (1), (2), or (3) of | ||||||
20 | this subsection (a) at least annually or upon request of the | ||||||
21 | Department.
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22 | (b) Every applicant for a permit under this Act must submit | ||||||
23 | the following information to the Department on an application | ||||||
24 | form provided by the Department:
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25 | (1) the name and address of the applicant and any | ||||||
26 | parent, subsidiary, or affiliate thereof;
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1 | (2) the proposed well name and address and legal | ||||||
2 | description of the well site and its unit area;
| ||||||
3 | (3) a statement whether the proposed location of the | ||||||
4 | well site is in compliance with the requirements of Section | ||||||
5 | 1-25 of this Act and a plat, which shows the proposed | ||||||
6 | surface location of the well site, providing the distance | ||||||
7 | in feet, from the surface location of the well site to the | ||||||
8 | features described in subsection (a) of Section 1-25 of | ||||||
9 | this Act;
| ||||||
10 | (4) a detailed description of the proposed well to be | ||||||
11 | used for the high volume horizontal hydraulic fracturing | ||||||
12 | operations including, but not limited to, the following | ||||||
13 | information:
| ||||||
14 | (A) the approximate total depth to which the well | ||||||
15 | is to be drilled or deepened;
| ||||||
16 | (B) the proposed angle and direction of the well;
| ||||||
17 | (C) the actual depth or the approximate depth at | ||||||
18 | which the well to be drilled deviates from vertical;
| ||||||
19 | (D) the angle and direction of any nonvertical | ||||||
20 | portion of the wellbore until the well reaches its | ||||||
21 | total target depth or its actual final depth; and
| ||||||
22 | (E) the estimated length and direction of the | ||||||
23 | proposed horizontal lateral or wellbore;
| ||||||
24 | (5) the estimated depth and elevation, according to the | ||||||
25 | most recent publication of the Illinois State Geological | ||||||
26 | Survey of Groundwater for the location of the well, of the |
| |||||||
| |||||||
1 | lowest potential fresh water along the entire length of the | ||||||
2 | proposed wellbore;
| ||||||
3 | (6) a detailed description of the proposed high volume | ||||||
4 | horizontal hydraulic fracturing operations, including, but | ||||||
5 | not limited to, the following:
| ||||||
6 | (A) the formation affected by the high volume | ||||||
7 | horizontal hydraulic fracturing operations, including, | ||||||
8 | but not limited to, geologic name and geologic | ||||||
9 | description of the formation that will be stimulated by | ||||||
10 | the operation;
| ||||||
11 | (B) the anticipated surface treating pressure | ||||||
12 | range;
| ||||||
13 | (C) the maximum anticipated injection treating | ||||||
14 | pressure;
| ||||||
15 | (D) the estimated or calculated fracture pressure | ||||||
16 | of the producing and confining zones; and
| ||||||
17 | (E) the planned depth of all proposed perforations | ||||||
18 | or depth to the top of the open hole section;
| ||||||
19 | (7) plat showing all known previous well bores within | ||||||
20 | 750 feet of any part of the horizontal well bore that | ||||||
21 | penetrated within 400 vertical feet of the formation that | ||||||
22 | will be stimulated as part of the high volume horizontal | ||||||
23 | hydraulic fracturing operations;
| ||||||
24 | (8) unless the applicant documents why the information | ||||||
25 | is not available at the time the application is submitted, | ||||||
26 | a chemical disclosure report identifying each chemical and |
| |||||||
| |||||||
1 | proppant anticipated to be used in hydraulic fracturing | ||||||
2 | fluid for each stage of the hydraulic fracturing operations | ||||||
3 | including the following:
| ||||||
4 | (A) the total volume of water anticipated to be | ||||||
5 | used in the hydraulic fracturing treatment of the well | ||||||
6 | or the type and total volume of the base fluid | ||||||
7 | anticipated to be used in the hydraulic fracturing | ||||||
8 | treatment, if something other than water;
| ||||||
9 | (B) each hydraulic fracturing additive anticipated | ||||||
10 | to be used in the hydraulic fracturing fluid, including | ||||||
11 | the trade name, vendor, a brief descriptor of the | ||||||
12 | intended use or function of each hydraulic fracturing | ||||||
13 | additive, and the Material Safety Data Sheet (MSDS), if | ||||||
14 | applicable;
| ||||||
15 | (C) each chemical anticipated to be intentionally | ||||||
16 | added to the base fluid, including for each chemical, | ||||||
17 | the Chemical Abstracts Service number, if applicable; | ||||||
18 | and
| ||||||
19 | (D) the anticipated concentration in the base | ||||||
20 | fluid, in percent by mass, of each chemical to be | ||||||
21 | intentionally added to the base fluid;
| ||||||
22 | (9) a certification of compliance with the Water Use | ||||||
23 | Act of 1983 and applicable regional water supply plans;
| ||||||
24 | (10) a fresh water withdrawal and management plan that | ||||||
25 | shall include the following information:
| ||||||
26 | (A) the source of the water, such as surface or |
| |||||||
| |||||||
1 | groundwater, anticipated to be used for water | ||||||
2 | withdrawals, and the anticipated withdrawal location;
| ||||||
3 | (B) the anticipated volume and rate of each water | ||||||
4 | withdrawal from each withdrawal location; | ||||||
5 | (C) the anticipated months when water withdrawals | ||||||
6 | shall be made from each withdrawal location;
| ||||||
7 | (D) the methods to be used to minimize water | ||||||
8 | withdrawals as much as feasible; and
| ||||||
9 | (E) the methods to be used for surface water | ||||||
10 | withdrawals to minimize adverse impact to aquatic | ||||||
11 | life. | ||||||
12 | Where a surface water source is wholly contained | ||||||
13 | within a single property, and the owner of the property | ||||||
14 | expressly agrees in writing to its use for water | ||||||
15 | withdrawals, the applicant is not required to include | ||||||
16 | this surface water source in the fresh water withdrawal | ||||||
17 | and management plan.
| ||||||
18 | (11) a plan for the handling, storage, transportation, | ||||||
19 | and disposal or reuse of hydraulic fracturing fluids and | ||||||
20 | hydraulic fracturing flowback. The plan shall identify the | ||||||
21 | specific Class II injection well or wells that will be used | ||||||
22 | to dispose of the hydraulic fracturing flowback. The plan | ||||||
23 | shall describe the capacity of the tanks to be used for the | ||||||
24 | capture and storage of flowback and of the lined reserve | ||||||
25 | pit to be used, if necessary, to temporarily store any | ||||||
26 | flowback in excess of the capacity of the tanks. |
| |||||||
| |||||||
1 | Identification of the Class II injection well or wells | ||||||
2 | shall be by name, identification number, and specific | ||||||
3 | location and shall include the date of the most recent | ||||||
4 | mechanical integrity test for each Class II injection well;
| ||||||
5 | (12) a well site safety plan to address proper safety | ||||||
6 | measures to be employed during high volume horizontal | ||||||
7 | hydraulic fracturing operations for the protection of | ||||||
8 | persons on the site as well as the general public. Within | ||||||
9 | 15 calendar days after submitting the permit application to | ||||||
10 | the Department, the applicant must provide a copy of the | ||||||
11 | plan to the county or counties in which hydraulic | ||||||
12 | fracturing operations will occur. Within 5 calendar days of | ||||||
13 | its receipt, the Department shall provide a copy of the | ||||||
14 | well site safety plan to the Office of the State Fire | ||||||
15 | Marshal;
| ||||||
16 | (13) a containment plan describing the containment | ||||||
17 | practices and equipment to be used and the area of the well | ||||||
18 | site where containment systems will be employed, and within | ||||||
19 | 5 calendar days of its receipt, the Department shall | ||||||
20 | provide a copy of the containment plan to the Office of the | ||||||
21 | State Fire Marshal;
| ||||||
22 | (14) a casing and cementing plan that describes the | ||||||
23 | casing and cementing practices to be employed, including | ||||||
24 | the size of each string of pipe, the starting point, and | ||||||
25 | depth to which each string is to be set and the extent to | ||||||
26 | which each string is to be cemented;
|
| |||||||
| |||||||
1 | (15) a traffic management plan that identifies the | ||||||
2 | anticipated roads, streets, and highways that will be used | ||||||
3 | for access to and egress from the well site. The traffic | ||||||
4 | management plan will include a point of contact to discuss | ||||||
5 | issues related to traffic management. Within 15 calendar | ||||||
6 | days after submitting the permit application to the | ||||||
7 | Department, the applicant must provide a copy of the | ||||||
8 | traffic management plan to the county or counties in which | ||||||
9 | the well site is located, and within 5 calendar days of its | ||||||
10 | receipt, the Department shall provide a copy of the traffic | ||||||
11 | management plan to the Office of the State Fire Marshal;
| ||||||
12 | (16) the names and addresses of all owners of any real | ||||||
13 | property within 1,500 feet of the proposed well site, as | ||||||
14 | disclosed by the records in the office of the recorder of | ||||||
15 | the county or counties;
| ||||||
16 | (17) drafts of the specific public notice and general | ||||||
17 | public notice as required by Section 1-40 of this Act;
| ||||||
18 | (18) statement that the well site at which the high | ||||||
19 | volume horizontal hydraulic fracturing operation will be | ||||||
20 | conducted will be restored in compliance with Section | ||||||
21 | 240.1181 of Title 62 of the Illinois Administrative Code | ||||||
22 | and Section 1-95 of this Act;
| ||||||
23 | (19) proof of insurance to cover injuries, damages, or | ||||||
24 | loss related to pollution in the amount of at least | ||||||
25 | $5,000,000; and
| ||||||
26 | (20) any other relevant information which the |
| |||||||
| |||||||
1 | Department may, by rule, require.
| ||||||
2 | (c) Where an application is made to conduct high volume | ||||||
3 | horizontal fracturing operations at a well site located within | ||||||
4 | the limits of any city, village, or incorporated town, the | ||||||
5 | application shall state the name of the city, village, or | ||||||
6 | incorporated town and be accompanied with a certified copy of | ||||||
7 | the official consent for the hydraulic fracturing operations to | ||||||
8 | occur from the municipal authorities where the well site is | ||||||
9 | proposed to be located. No permit shall be issued unless | ||||||
10 | consent is secured and filed with the permit application. In | ||||||
11 | the event that an amended location is selected, the original | ||||||
12 | permit shall not be valid unless a new certified consent is | ||||||
13 | filed for the amended location.
| ||||||
14 | (d) The hydraulic fracturing permit application shall be | ||||||
15 | accompanied by a bond as required by subsection (a) of Section | ||||||
16 | 1-65 of this Act.
| ||||||
17 | (e) Each application for a permit under this Act shall | ||||||
18 | include payment of a non-refundable fee of $13,500. Of this | ||||||
19 | fee, $11,000 shall be deposited into the Mines and Minerals | ||||||
20 | Regulatory Fund for the Department to use to administer and | ||||||
21 | enforce this Act and otherwise support the operations and | ||||||
22 | programs of the Office of Mines and Minerals. The remaining | ||||||
23 | $2,500 shall be deposited into the Illinois Clean Water Fund | ||||||
24 | for the Agency to use to carry out its functions under this | ||||||
25 | Act. The Department shall not initiate its review of the permit | ||||||
26 | application until the applicable fee under this subsection (e) |
| |||||||
| |||||||
1 | has been submitted to and received by the Department.
| ||||||
2 | (f) Each application submitted under this Act shall be | ||||||
3 | signed, under the penalty of perjury, by the applicant or the | ||||||
4 | applicant's designee who has been vested with the authority to | ||||||
5 | act on behalf of the applicant and has direct knowledge of the | ||||||
6 | information contained in the application and its attachments. | ||||||
7 | Any person signing an application shall also sign an affidavit | ||||||
8 | with the following certification:
| ||||||
9 | "I certify, under penalty of perjury as provided by law | ||||||
10 | and under penalty of refusal, suspension, or revocation of | ||||||
11 | a high volume horizontal hydraulic fracturing permit, that | ||||||
12 | this application and all attachments are true, accurate, | ||||||
13 | and complete to the best of my knowledge.".
| ||||||
14 | (g) The permit application shall be submitted to the | ||||||
15 | Department in both electronic and hard copy format. The | ||||||
16 | electronic format shall be searchable.
| ||||||
17 | (h) The application for a high volume horizontal hydraulic | ||||||
18 | fracturing permit may be submitted as a combined permit | ||||||
19 | application with the operator's application to drill on a form | ||||||
20 | as the Department shall prescribe. The combined application | ||||||
21 | must include the information required in this Section. If the | ||||||
22 | operator elects to submit a combined permit application, | ||||||
23 | information required by this Section that is duplicative of | ||||||
24 | information required for an application to drill is only | ||||||
25 | required to be provided once as part of the combined | ||||||
26 | application. The submission of a combined permit application |
| |||||||
| |||||||
1 | under this subsection shall not be interpreted to relieve the | ||||||
2 | applicant or the Department from complying with the | ||||||
3 | requirements of this Act or the Illinois Oil and Gas Act.
| ||||||
4 | (i) Upon receipt of a permit application, the Department | ||||||
5 | shall have no more than 60 calendar days from the date it | ||||||
6 | receives the permit application to approve, with any conditions | ||||||
7 | the Department may find necessary, or reject the application | ||||||
8 | for the high volume horizontal hydraulic fracturing permit. The | ||||||
9 | applicant may waive, in writing, the 60-day deadline upon its | ||||||
10 | own initiative or in response to a request by the Department.
| ||||||
11 | (j) If at any time during the review period the Department | ||||||
12 | determines that the permit application is not complete under | ||||||
13 | this Act, does not meet the requirements of this Section, or | ||||||
14 | requires additional information, the Department shall notify | ||||||
15 | the applicant in writing of the application's deficiencies and | ||||||
16 | allow the applicant to correct the deficiencies and provide the | ||||||
17 | Department any information requested to complete the | ||||||
18 | application. If the applicant fails to provide adequate | ||||||
19 | supplemental information within the review period, the | ||||||
20 | Department may reject the application.
| ||||||
21 | Section 1-40. Public notice. | ||||||
22 | (a) Within 5 calendar days after the Department's receipt | ||||||
23 | of the high volume horizontal hydraulic fracturing | ||||||
24 | application, the Department shall post notice of its receipt | ||||||
25 | and a copy of the permit application on its website. The notice |
| |||||||
| |||||||
1 | shall include the dates of the public comment period and | ||||||
2 | directions for interested parties to submit comments.
| ||||||
3 | (b) Within 5 calendar days after the Department's receipt | ||||||
4 | of the permit application and notice to the applicant that the | ||||||
5 | high volume horizontal hydraulic fracturing permit application | ||||||
6 | was received, the Department shall provide the Agency, the | ||||||
7 | Office of the State Fire Marshal, Illinois State Water Survey, | ||||||
8 | and Illinois State Geological Survey with notice of the | ||||||
9 | application.
| ||||||
10 | (c) The applicant shall provide the following public | ||||||
11 | notice: | ||||||
12 | (1) Applicants shall mail specific public notice by | ||||||
13 | U.S. Postal Service certified mail, return receipt | ||||||
14 | requested, within 3 calendar days after submittal of the | ||||||
15 | high volume horizontal hydraulic fracturing permit | ||||||
16 | application to the Department, to all persons identified as | ||||||
17 | owners of real property within 1,500 feet of the proposed | ||||||
18 | well site, as disclosed by the records in the office of the | ||||||
19 | recorder of the county or counties, and to each | ||||||
20 | municipality and county in which the well site is proposed | ||||||
21 | to be located.
| ||||||
22 | (2) Except as otherwise provided in this paragraph (2) | ||||||
23 | of subsection (c), applicants shall provide general public | ||||||
24 | notice by publication, once each week for 2 consecutive | ||||||
25 | weeks, beginning no later than 3 calendar days after | ||||||
26 | submittal of the high volume horizontal hydraulic |
| |||||||
| |||||||
1 | fracturing permit application to the Department, in a | ||||||
2 | newspaper of general circulation published in each county | ||||||
3 | where the well proposed for high volume hydraulic | ||||||
4 | fracturing operations is proposed to be located.
| ||||||
5 | If a well is proposed for high volume hydraulic | ||||||
6 | fracturing operations in a county where there is no daily | ||||||
7 | newspaper of general circulation, applicant shall provide | ||||||
8 | general public notice, by publication, once each week for 2 | ||||||
9 | consecutive weeks, in a weekly newspaper of general | ||||||
10 | circulation in that county beginning as soon as the | ||||||
11 | publication schedule of the weekly newspaper permits, but | ||||||
12 | in no case later than 10 days after submittal of the high | ||||||
13 | volume hydraulic fracturing permit application to the | ||||||
14 | Department. | ||||||
15 | (3) The specific and general public notices required | ||||||
16 | under this subsection shall contain the following | ||||||
17 | information:
| ||||||
18 | (A) the name and address of the applicant;
| ||||||
19 | (B) the date the application for a high volume | ||||||
20 | horizontal hydraulic fracturing permit was filed;
| ||||||
21 | (C) the dates for the public comment period and a | ||||||
22 | statement that anyone may file written comments about | ||||||
23 | any portion of the applicant's submitted high volume | ||||||
24 | horizontal hydraulic fracturing permit application | ||||||
25 | with the Department during the public comment period;
| ||||||
26 | (D) the proposed well name, reference number |
| |||||||
| |||||||
1 | assigned by the Department, and the address and legal | ||||||
2 | description of the well site and its unit area;
| ||||||
3 | (E) a statement that the information filed by the | ||||||
4 | applicant in their application for a high volume | ||||||
5 | horizontal hydraulic fracturing permit is available | ||||||
6 | from the Department through its website;
| ||||||
7 | (F) the Department's website and the address and | ||||||
8 | telephone number for the Department's Oil and Gas | ||||||
9 | Division;
| ||||||
10 | (G) a statement that any person having an interest | ||||||
11 | that is or may be adversely affected, any government | ||||||
12 | agency that is or may be affected, or the county board | ||||||
13 | of a county to be affected under a proposed permit, may | ||||||
14 | file written objections to a permit application and may | ||||||
15 | request a public hearing.
| ||||||
16 | (d) After providing the public notice as required under | ||||||
17 | paragraph (2) of subsection (c) of this Section, the applicant | ||||||
18 | shall supplement its permit application by providing the | ||||||
19 | Department with a certification and documentation that the | ||||||
20 | applicant fulfilled the public notice requirements of this | ||||||
21 | Section. The Department shall not issue a permit until the | ||||||
22 | applicant has provided the supplemental material required | ||||||
23 | under this subsection.
| ||||||
24 | (e) If multiple applications are submitted at the same time | ||||||
25 | for wells located on the same well site, the applicant may use | ||||||
26 | one public notice for all applications provided the notice is |
| |||||||
| |||||||
1 | clear that it pertains to multiple applications and conforms to | ||||||
2 | the requirements of this Section. Notice shall not constitute | ||||||
3 | standing for purposes of requesting a public hearing or for | ||||||
4 | standing to appeal the decision of the Department in accordance | ||||||
5 | with the Administrative Review Law.
| ||||||
6 | Section 1-45. Public comment periods. | ||||||
7 | (a) The public comment period shall begin 7 calendar days | ||||||
8 | after the Department's receipt of the permit application and | ||||||
9 | last for 30 calendar days.
| ||||||
10 | (b) Where a public hearing is conducted under Section 1-50 | ||||||
11 | of this Act, the Department may provide for an additional | ||||||
12 | public comment period of 15 days as necessary to allow for | ||||||
13 | comments in response to evidence and testimony presented at the | ||||||
14 | hearing. The additional public comment period shall begin on | ||||||
15 | the day after the public hearing.
| ||||||
16 | (c) During any public comment period, any person may file | ||||||
17 | written comments to the Department concerning any portion of | ||||||
18 | the permit application and any issue relating to the | ||||||
19 | applicant's compliance with the requirements of the Act and any | ||||||
20 | other applicable laws.
| ||||||
21 | (d) The Department may request that the applicant respond | ||||||
22 | to any substantive public comments obtained during the public | ||||||
23 | comment period.
| ||||||
24 | Section 1-50. High volume horizontal hydraulic fracturing |
| |||||||
| |||||||
1 | permit; hearing. | ||||||
2 | (a) When a permit application is submitted to conduct high | ||||||
3 | volume horizontal hydraulic fracturing operations for the | ||||||
4 | first time at a particular well site, any person having an | ||||||
5 | interest that is or may be adversely affected, any government | ||||||
6 | agency that is or may be affected, or the county board of a | ||||||
7 | county to be affected under a proposed permit, may file written | ||||||
8 | objections to the permit application and may request a public | ||||||
9 | hearing during the public comment period established under | ||||||
10 | subsection (a) of Section 1-45 of this Act. The request for | ||||||
11 | hearing shall contain a short and plain statement identifying | ||||||
12 | the person and stating facts demonstrating that the person has | ||||||
13 | an interest that is or may be adversely affected. The | ||||||
14 | Department shall hold a public hearing upon a request under | ||||||
15 | this subsection, unless the request is determined by the | ||||||
16 | Department to (i) lack an adequate factual statement that the | ||||||
17 | person is or may be adversely affected or (ii) be frivolous.
| ||||||
18 | (b) Prior to the commencement of a public hearing under | ||||||
19 | this Section, any person who could have requested the hearing | ||||||
20 | under subsection (a) of this Section may petition the | ||||||
21 | Department to participate in the hearing in the same manner as | ||||||
22 | the party requesting the hearing. The petition shall contain a | ||||||
23 | short and plain statement identifying the petitioner and | ||||||
24 | stating facts demonstrating that the petitioner is a person | ||||||
25 | having an interest that is or may be adversely affected. The | ||||||
26 | petitioner shall serve the petition upon the Department. Unless |
| |||||||
| |||||||
1 | the Department determines that the petition is frivolous, or | ||||||
2 | that the petitioner has failed to allege facts in support of an | ||||||
3 | interest that is or may be adversely affected, the petitioner | ||||||
4 | shall be allowed to participate in the hearing in the same | ||||||
5 | manner as the party requesting the hearing.
| ||||||
6 | (c) The public hearing to be conducted under this Section | ||||||
7 | shall comply with the contested case requirements of the | ||||||
8 | Illinois Administrative Procedure Act. The Department shall | ||||||
9 | establish rules and procedures to determine whether any request | ||||||
10 | for a public hearing may be granted in accordance with | ||||||
11 | subsection (a) of this Section, and for the notice and conduct | ||||||
12 | of the public hearing. These procedural rules shall include | ||||||
13 | provisions for reasonable notice to (i) the public and (ii) all | ||||||
14 | parties to the proceeding, which include the applicant, the | ||||||
15 | persons requesting the hearing, and the persons granted the | ||||||
16 | right to participate in the hearing pursuant to subsection (b) | ||||||
17 | of this Section, for the qualifications, powers, and | ||||||
18 | obligations of the hearing officer, and for reasonable | ||||||
19 | opportunity for all the parties to provide evidence and | ||||||
20 | argument, to respond by oral or written testimony to statements | ||||||
21 | and objections made at the public hearing, and for reasonable | ||||||
22 | cross-examination of witnesses. County boards and the public | ||||||
23 | may present their written objections or recommendations at the | ||||||
24 | public hearing. A complete record of the hearings and all | ||||||
25 | testimony shall be made by the Department and recorded | ||||||
26 | stenographically or electronically. The complete record shall |
| |||||||
| |||||||
1 | be maintained and shall be accessible to the public on the | ||||||
2 | Department's website until final release of the applicant's | ||||||
3 | performance bond.
| ||||||
4 | (d) At least 10 calendar days before the date of the public | ||||||
5 | hearing, the Department shall publish notice of the public | ||||||
6 | hearing in a newspaper of general circulation published in the | ||||||
7 | county where the proposed well site will be located.
| ||||||
8 | Section 1-53. High volume horizontal hydraulic fracturing | ||||||
9 | permit; determination; judicial review. | ||||||
10 | (a) The Department shall issue a high volume horizontal | ||||||
11 | hydraulic fracturing permit, with any conditions the | ||||||
12 | Department may find necessary, only if the record of decision | ||||||
13 | demonstrates that:
| ||||||
14 | (1) the well location restrictions of Section 1-25 of | ||||||
15 | this Act have been satisfied;
| ||||||
16 | (2) the application meets the requirements of Section | ||||||
17 | 1-35 of this Act;
| ||||||
18 | (3) the plans required to be submitted with the | ||||||
19 | application under Section 1-35 of this Act are adequate and | ||||||
20 | effective;
| ||||||
21 | (4) the proposed hydraulic fracturing operations will | ||||||
22 | be conducted in a manner that will protect the public | ||||||
23 | health and safety and prevent pollution or diminution of | ||||||
24 | any water source;
| ||||||
25 | (5) the work plan required under Section 1-80 of this |
| |||||||
| |||||||
1 | Act has been submitted to the Department;
| ||||||
2 | (6) the applicant or any parent, subsidiary, or | ||||||
3 | affiliate thereof has not failed to abate a violation of | ||||||
4 | this Act or the Illinois Oil and Gas Act;
| ||||||
5 | (7) the Class II injection wells to be used for | ||||||
6 | disposal of hydraulic fracturing flowback comply with all | ||||||
7 | applicable requirements for mechanical integrity testing, | ||||||
8 | including that the well has been tested within the previous | ||||||
9 | 5 years; and
| ||||||
10 | (8) there is no good cause to deny the permit under | ||||||
11 | subsection (a) of Section 1-60 of this Act.
| ||||||
12 | (b) For the purpose of determining whether to issue a | ||||||
13 | permit, the Department shall consider and the Department's | ||||||
14 | record of decision shall include:
| ||||||
15 | (1) the application for the high volume horizontal | ||||||
16 | hydraulic fracturing permit, including all documentation | ||||||
17 | required by Section 1-35 of this Act;
| ||||||
18 | (2) all written comments received during the public | ||||||
19 | comment periods and, if applicable, the complete record | ||||||
20 | from the public hearing held under Section 1-50 of this | ||||||
21 | Act;
| ||||||
22 | (3) all information provided by the applicant in | ||||||
23 | response to any public comments; and
| ||||||
24 | (4) any information known to the Department as the | ||||||
25 | public entity responsible for regulating high volume | ||||||
26 | horizontal hydraulic fracturing operations, including, but |
| |||||||
| |||||||
1 | not limited to, inspections of the proposed well site as | ||||||
2 | necessary to ensure adequate review of the application.
| ||||||
3 | (c) The Department shall, by U.S. Mail and electronic | ||||||
4 | transmission, provide the applicant with a copy of the high | ||||||
5 | volume horizontal hydraulic fracturing permit as issued or its | ||||||
6 | final administrative decision denying the permit to the | ||||||
7 | applicant and shall, by U.S. Mail or electronic transmission, | ||||||
8 | provide a copy of the permit as issued or the final | ||||||
9 | administrative decision to any person or unit of local | ||||||
10 | government who received specific public notice under Section | ||||||
11 | 1-40 of this Act or submitted comments or participated in any | ||||||
12 | public hearing under Section 1-50 of this Act.
| ||||||
13 | (d) The Department's decision to approve or deny a high | ||||||
14 | volume horizontal hydraulic fracturing permit shall be | ||||||
15 | considered a final administrative decision subject to judicial | ||||||
16 | review under the Administrative Review Law and the rules | ||||||
17 | adopted under that Law.
| ||||||
18 | (e) Following completion of the Department's review and | ||||||
19 | approval process, the Department's website shall indicate | ||||||
20 | whether an individual high volume horizontal hydraulic | ||||||
21 | fracturing permit was approved or denied and provide a copy of | ||||||
22 | the approval or denial.
| ||||||
23 | Section 1-55. High volume horizontal hydraulic fracturing | ||||||
24 | permit; conditions; restriction; modifications. | ||||||
25 | (a) Each permit issued by the Department under this Act |
| |||||||
| |||||||
1 | shall require the permittee to comply with all provisions of | ||||||
2 | this Act and all other applicable local, State, and federal | ||||||
3 | laws, rules, and regulations in effect at the time the permit | ||||||
4 | is issued. All plans submitted with the application under | ||||||
5 | Section 1-35 shall be conditions of the permit.
| ||||||
6 | (b) A permit issued under this Act shall continue in effect | ||||||
7 | until plugging and restoration in compliance with this Act and | ||||||
8 | the Illinois Oil and Gas Act are completed to the Department's | ||||||
9 | satisfaction. No permit may be transferred to another person | ||||||
10 | without approval of the Department.
| ||||||
11 | (c) No permit issued under this Act may be modified without | ||||||
12 | approval of the Department. If the Department determines that | ||||||
13 | the proposed modifications constitute a significant deviation | ||||||
14 | from the terms of the original application and permit approval, | ||||||
15 | or presents a serious risk to public health, life, property, | ||||||
16 | aquatic life, or wildlife, the Department shall provide the | ||||||
17 | opportunities for notice, comment, and hearing required under | ||||||
18 | Sections 1-45 and 1-50 of this Act. The Department shall | ||||||
19 | provide notice of the proposed modification and opportunity for | ||||||
20 | comment and hearing to the persons who received specific public | ||||||
21 | notice under Section 1-40 of this Act and shall publish the | ||||||
22 | notice and the proposed modification on its website. The | ||||||
23 | Department shall adopt rules regarding procedures for a permit | ||||||
24 | modification.
| ||||||
25 | Section 1-60. High volume horizontal hydraulic fracturing |
| |||||||
| |||||||
1 | permit; denial, suspension, or revocation. | ||||||
2 | (a) The Department may suspend, revoke, or refuse to issue | ||||||
3 | a high volume horizontal hydraulic fracturing permit under this | ||||||
4 | Act for one or more of the following causes:
| ||||||
5 | (1) providing incorrect, misleading, incomplete, or | ||||||
6 | materially untrue information in a permit application or | ||||||
7 | any document required to be filed with the Department;
| ||||||
8 | (2) violating any condition of the permit;
| ||||||
9 | (3) violating any provision of or any regulation | ||||||
10 | adopted under this Act or the Illinois Oil and Gas Act;
| ||||||
11 | (4) using fraudulent, coercive, or dishonest | ||||||
12 | practices, or demonstrating incompetence, | ||||||
13 | untrustworthiness, or financial irresponsibility in the | ||||||
14 | conduct of business in this State or elsewhere;
| ||||||
15 | (5) having a high volume horizontal hydraulic | ||||||
16 | fracturing permit, or its equivalent, revoked in any other | ||||||
17 | state, province, district, or territory for incurring a | ||||||
18 | material or major violation or using fraudulent or | ||||||
19 | dishonest practices; or
| ||||||
20 | (6) an emergency condition exists under which conduct | ||||||
21 | of the high volume horizontal hydraulic fracturing | ||||||
22 | operations would pose a significant hazard to public | ||||||
23 | health, aquatic life, wildlife, or the environment.
| ||||||
24 | (b) In every case in which a permit is suspended or | ||||||
25 | revoked, the Department shall serve notice of its action, | ||||||
26 | including a statement of the reasons for the action, either |
| |||||||
| |||||||
1 | personally or by certified mail, receipt return requested, to | ||||||
2 | the permittee.
| ||||||
3 | (c) The order of suspension or revocation of a permit shall | ||||||
4 | take effect upon issuance of the order. The permittee may | ||||||
5 | request, in writing, within 30 days after the date of receiving | ||||||
6 | the notice, a hearing. Except as provided under subsection (d) | ||||||
7 | of this Section, in the event a hearing is requested, the order | ||||||
8 | shall remain in effect until a final order is entered pursuant | ||||||
9 | to the hearing.
| ||||||
10 | (d) The order of suspension or revocation of a permit may | ||||||
11 | be stayed if requested by the permittee and evidence is | ||||||
12 | submitted demonstrating that there is no significant threat to | ||||||
13 | the public health, aquatic life, wildlife, or the environment | ||||||
14 | if the operation is allowed to continue.
| ||||||
15 | (e) The hearing shall be held at a time and place | ||||||
16 | designated by the Department. The Director of the Department or | ||||||
17 | any administrative law judge designated by him or her have the | ||||||
18 | power to administer oaths and affirmations, subpoena witnesses | ||||||
19 | and compel their attendance, take evidence, and require the | ||||||
20 | production of books, papers, correspondence, and other records | ||||||
21 | or information that he or she considers relevant or material.
| ||||||
22 | (f) The costs of the administrative hearing shall be set by | ||||||
23 | rule and shall be borne by the permittee.
| ||||||
24 | (g) The Department's decision to suspend or revoke a high | ||||||
25 | volume horizontal hydraulic fracturing permit is subject to | ||||||
26 | judicial review under the Administrative Review Law.
|
| |||||||
| |||||||
1 | Section 1-65. Hydraulic fracturing permit; bonds. | ||||||
2 | (a) An applicant for a high volume horizontal hydraulic | ||||||
3 | fracturing permit under this Act shall provide a bond, executed | ||||||
4 | by a surety authorized to transact business in this State. The | ||||||
5 | bond shall be in the amount of $50,000 per permit or a blanket | ||||||
6 | bond of $500,000 for all permits. If the applicant is required | ||||||
7 | to submit a bond to the Department under the Illinois Oil and | ||||||
8 | Gas Act, the applicant's submission of a bond under this | ||||||
9 | Section shall satisfy the bonding requirements provided for in | ||||||
10 | the Illinois Oil and Gas Act. In lieu of a bond, the applicant | ||||||
11 | may provide other collateral securities such as cash, | ||||||
12 | certificates of deposit, or irrevocable letters of credit under | ||||||
13 | the terms and conditions as the Department may provide by rule.
| ||||||
14 | (b) The bond or other collateral securities shall remain in | ||||||
15 | force until the well is plugged and abandoned. Upon abandoning | ||||||
16 | a well to the satisfaction of the Department and in accordance | ||||||
17 | with the Illinois Oil and Gas Act, the bond or other collateral | ||||||
18 | securities shall be promptly released by the Department. Upon | ||||||
19 | the release by the Department of the bond or other collateral | ||||||
20 | securities, any cash or collateral securities deposited shall | ||||||
21 | be returned by the Department to the applicant who deposited | ||||||
22 | it.
| ||||||
23 | (c) If, after notice and hearing, the Department determines | ||||||
24 | that any of the requirements of this Act or rules adopted under | ||||||
25 | this Act or the orders of the Department have not been complied |
| |||||||
| |||||||
1 | with within the time limit set by any notice of violation | ||||||
2 | issued under this Act, the permittee's bond or other collateral | ||||||
3 | securities shall be forfeited. Forfeiture under this | ||||||
4 | subsection shall not limit any duty of the permittee to | ||||||
5 | mitigate or remediate harms or foreclose enforcement by the | ||||||
6 | Department or the Agency. In no way will payment under this | ||||||
7 | bond exceed the aggregate penalty as specified.
| ||||||
8 | (d) When any bond or other collateral security is forfeited | ||||||
9 | under the provisions of this Act or rules adopted under this | ||||||
10 | Act, the Department shall collect the forfeiture without delay. | ||||||
11 | The surety shall have 30 days to submit payment for the bond | ||||||
12 | after receipt of notice by the permittee of the forfeiture.
| ||||||
13 | (e) All forfeitures shall be deposited in the Mines and | ||||||
14 | Minerals Regulatory Fund to be used, as necessary, to mitigate | ||||||
15 | or remediate violations of this Act or rules adopted under this | ||||||
16 | Act.
| ||||||
17 | Section 1-70. Well preparation, construction, and | ||||||
18 | drilling. | ||||||
19 | (a) This Section shall apply to all horizontal wells that | ||||||
20 | are to be completed using high volume horizontal hydraulic | ||||||
21 | fracturing operations under a high volume horizontal hydraulic | ||||||
22 | fracturing permit. The requirements of this Section shall be in | ||||||
23 | addition to any other laws or rules regarding wells and well | ||||||
24 | sites.
| ||||||
25 | (b) Site preparation standards shall be as follows: |
| |||||||
| |||||||
1 | (1) The access road to the well site must be located in | ||||||
2 | accordance with access rights identified in the Illinois | ||||||
3 | Oil and Gas Act and located as far as practical from | ||||||
4 | occupied structures, places of assembly, and property | ||||||
5 | lines of unleased property. | ||||||
6 | (2) Unless otherwise approved or directed by the | ||||||
7 | Department, all topsoil stripped to facilitate the | ||||||
8 | construction of the well pad and access roads must be | ||||||
9 | stockpiled, stabilized, and remain on site for use in | ||||||
10 | either partial or final reclamation. In the event it is | ||||||
11 | anticipated that the final reclamation shall take place in | ||||||
12 | excess of one year from drilling the well the topsoil may | ||||||
13 | be disposed of in any lawful manner provided the operator | ||||||
14 | reclaims the site with topsoil of similar characteristics | ||||||
15 | of the topsoil removed. | ||||||
16 | (3) Piping, conveyances, valves, and tanks in contact | ||||||
17 | with hydraulic fracturing fluid, hydraulic fracturing | ||||||
18 | flowback, or produced water must be constructed of | ||||||
19 | materials compatible with the composition of the hydraulic | ||||||
20 | fracturing fluid, hydraulic fracturing flowback, and | ||||||
21 | produced water.
| ||||||
22 | (4) The improvement, construction, or repair of a | ||||||
23 | publicly owned highway or roadway, if undertaken by the | ||||||
24 | owner, operator, permittee, or any other private entity, | ||||||
25 | shall be performed using bidding procedures outlined in the | ||||||
26 | Illinois Department of Transportation rules governing |
| |||||||
| |||||||
1 | local roads and streets or applicable bidding requirements | ||||||
2 | outlined in the Illinois Procurement Code as though the | ||||||
3 | project were publicly funded. | ||||||
4 | (c) Site maintenance standards shall be as follows: | ||||||
5 | (1) Secondary containment is required for all fueling | ||||||
6 | tanks. | ||||||
7 | (2) Fueling tanks shall be subject to Section 1-25 of | ||||||
8 | this Act. | ||||||
9 | (3) Fueling tank filling operations shall be | ||||||
10 | supervised at the fueling truck and at the tank if the tank | ||||||
11 | is not visible to the fueling operator from the truck. | ||||||
12 | (4) Troughs, drip pads, or drip pans are required | ||||||
13 | beneath the fill port of a fueling tank during filling | ||||||
14 | operations if the fill port is not within the secondary | ||||||
15 | containment required by paragraph (1) of this subsection. | ||||||
16 | (d) All wells shall be constructed, and casing and | ||||||
17 | cementing activities shall be conducted, in a manner that shall | ||||||
18 | provide for control of the well at all times, prevent the | ||||||
19 | migration of oil, gas, and other fluids into the fresh water | ||||||
20 | and coal seams, and prevent pollution or diminution of fresh | ||||||
21 | water. In addition to any of the Department's casing and | ||||||
22 | cementing requirements, the following shall apply: | ||||||
23 | (1) All casings must conform to the current industry | ||||||
24 | standards published by the American Petroleum Institute. | ||||||
25 | (2) Casing thread compound and its use must conform to | ||||||
26 | the current industry standards published by the American |
| |||||||
| |||||||
1 | Petroleum Institute. | ||||||
2 | (3) Surface casing shall be centralized at the shoe, | ||||||
3 | above and below a stage collar or diverting tool, if run, | ||||||
4 | and through usable-quality water zones. In non-deviated | ||||||
5 | holes, pipe centralization as follows is required: a | ||||||
6 | centralizer shall be placed every fourth joint from the | ||||||
7 | cement shoe to the ground surface or to the bottom of the | ||||||
8 | cellar. All centralizers shall meet specifications in, or | ||||||
9 | equivalent to, API spec 10D, Specification for Bow-Spring | ||||||
10 | Casing Centralizers; API Spec 10 TR4, Technical Report on | ||||||
11 | Considerations Regarding Selection of Centralizers for | ||||||
12 | Primary Cementing Operations; and API RP 10D-2, | ||||||
13 | Recommended Practice for Centralizer Placement and Stop | ||||||
14 | Collar Testing. The Department may require additional | ||||||
15 | centralization as necessary to ensure the integrity of the | ||||||
16 | well design is adequate. All centralizers must conform to | ||||||
17 | the current industry standards published by the American | ||||||
18 | Petroleum Institute. | ||||||
19 | (4) Cement must conform to current industry standards | ||||||
20 | published by the American Petroleum Institute and the | ||||||
21 | cement slurry must be prepared to minimize its free water | ||||||
22 | content in accordance with the current industry standards | ||||||
23 | published by the American Petroleum Institute; the cement | ||||||
24 | must also: | ||||||
25 | (A) secure the casing in the wellbore; | ||||||
26 | (B) isolate and protect fresh groundwater; |
| |||||||
| |||||||
1 | (C) isolate abnormally pressured zones, lost | ||||||
2 | circulation zones, and any potential flow zones | ||||||
3 | including hydrocarbon and fluid-bearing zones; | ||||||
4 | (D) properly control formation pressure and any | ||||||
5 | pressure from drilling, completion and production; | ||||||
6 | (E) protect the casing from corrosion and | ||||||
7 | degradation; and | ||||||
8 | (F) prevent gas flow in the annulus. | ||||||
9 | (5) Prior to cementing any casing string, the borehole | ||||||
10 | must be circulated and conditioned to ensure an adequate | ||||||
11 | cement bond. | ||||||
12 | (6) A pre-flush or spacer must be pumped ahead of the | ||||||
13 | cement. | ||||||
14 | (7) The cement must be pumped at a rate and in a flow | ||||||
15 | regime that inhibits channeling of the cement in the | ||||||
16 | annulus. | ||||||
17 | (8) Cement compressive strength tests must be | ||||||
18 | performed on all surface, intermediate, and production | ||||||
19 | casing strings; after the cement is placed behind the | ||||||
20 | casing, the operator shall wait on cement to set until the | ||||||
21 | cement achieves a calculated compressive strength of at | ||||||
22 | least 500 pounds per square inch, and a minimum of 8 hours | ||||||
23 | before the casing is disturbed in any way, including | ||||||
24 | installation of a blowout preventer. The cement shall have | ||||||
25 | a 72-hour compressive strength of at least 1,200 psi, and | ||||||
26 | the free water separation shall be no more than 6 |
| |||||||
| |||||||
1 | milliliters per 250 milliliters of cement, tested in | ||||||
2 | accordance with current American petroleum Institute | ||||||
3 | standards. | ||||||
4 | (9) A copy of the cement job log for any cemented | ||||||
5 | casing string in the well shall be maintained in the well | ||||||
6 | file and available to the Department upon request. | ||||||
7 | (10) Surface casing shall be used and set to a depth of | ||||||
8 | at least 200 feet, or 100 feet below the base of the | ||||||
9 | deepest fresh water, whichever is deeper, but no more than | ||||||
10 | 200 feet below the base of the deepest fresh water and | ||||||
11 | prior to encountering any hydrocarbon-bearing zones. The | ||||||
12 | surface casing must be run and cemented as soon as | ||||||
13 | practicable after the hole has been adequately circulated | ||||||
14 | and conditioned. | ||||||
15 | (11) The Department must be notified at least 24 hours | ||||||
16 | prior to surface casing cementing operations. Surface | ||||||
17 | casing must be fully cemented to the surface with excess | ||||||
18 | cements. Cementing must be by the pump and plug method with | ||||||
19 | a minimum of 25% excess cement with appropriate lost | ||||||
20 | circulation material, unless another amount of excess | ||||||
21 | cement is approved by the Department. If cement returns are | ||||||
22 | not observed at the surface, the operator must perform | ||||||
23 | remedial actions as appropriate. | ||||||
24 | (12) Intermediate casing must be installed when | ||||||
25 | necessary to isolate fresh water not isolated by surface | ||||||
26 | casing and to seal off potential flow zones, anomalous |
| |||||||
| |||||||
1 | pressure zones, lost circulation zones and other drilling | ||||||
2 | hazards. | ||||||
3 | Intermediate casing must be set to protect fresh water | ||||||
4 | if surface casing was set above the base of the deepest | ||||||
5 | fresh water, if additional fresh water was found below the | ||||||
6 | surface casing shoe, or both. Intermediate casing used to | ||||||
7 | isolate fresh water must not be used as the production | ||||||
8 | string in the well in which it is installed, and may not be | ||||||
9 | perforated for purposes of conducting a hydraulic fracture | ||||||
10 | treatment through it. | ||||||
11 | When intermediate casing is installed to protect fresh | ||||||
12 | water, the operator shall set a full string of new | ||||||
13 | intermediate casing at least 100 feet below the base of the | ||||||
14 | deepest fresh water and bring cement to the surface. In | ||||||
15 | instances where intermediate casing was set solely to | ||||||
16 | protect fresh water encountered below the surface casing | ||||||
17 | shoe, and cementing to the surface is technically | ||||||
18 | infeasible, would result in lost circulation, or both, | ||||||
19 | cement must be brought to a minimum of 600 feet above the | ||||||
20 | shallowest fresh water zone encountered below the surface | ||||||
21 | casing shoe or to the surface if the fresh water zone is | ||||||
22 | less than 600 feet from the surface. The location and | ||||||
23 | depths of any hydrocarbon-bearing zones or fresh water | ||||||
24 | zones that are open to the wellbore above the casing shoe | ||||||
25 | must be confirmed by coring, electric logs, or testing and | ||||||
26 | must be reported to the Department. |
| |||||||
| |||||||
1 | In the case that intermediate casing was set for a | ||||||
2 | reason other than to protect strata that contains fresh | ||||||
3 | water, the intermediate casing string shall be cemented | ||||||
4 | from the shoe to a point at least 600 true vertical feet | ||||||
5 | above the shoe. If there is a hydrocarbon bearing zone | ||||||
6 | capable of producing exposed above the intermediate casing | ||||||
7 | shoe, the casing shall be cemented from the shoe to a point | ||||||
8 | at least 600 true vertical feet above the shallowest | ||||||
9 | hydrocarbon bearing zone or to a point at least 200 feet | ||||||
10 | above the shoe of the next shallower casing string that was | ||||||
11 | set and cemented in the well (or to the surface if less | ||||||
12 | than 200 feet). | ||||||
13 | (13) The Department must be notified prior to | ||||||
14 | intermediate casing cementing operations. Cementing must | ||||||
15 | be by the pump and plug method with a minimum of 25% excess | ||||||
16 | cement. A radial cement bond evaluation log, or other | ||||||
17 | evaluation approved by the Department, must be run to | ||||||
18 | verify the cement bond on the intermediate casing. Remedial | ||||||
19 | cementing is required if the cement bond is not adequate | ||||||
20 | for drilling ahead. | ||||||
21 | (14) Production casing must be run and fully cemented | ||||||
22 | to 500 feet above the top perforated zone, if possible. The | ||||||
23 | Department must be notified at least 24 hours prior to | ||||||
24 | production casing cementing operations. Cementing must be | ||||||
25 | by the pump and plug method with a minimum of 25% excess | ||||||
26 | cement. |
| |||||||
| |||||||
1 | (15) At any time, the Department, as it deems | ||||||
2 | necessary, may require installation of an additional | ||||||
3 | cemented casing string or strings in the well. | ||||||
4 | (16) After the setting and cementing of a casing | ||||||
5 | string, except the conductor casing, and prior to further | ||||||
6 | drilling, the casing string shall be tested with fresh | ||||||
7 | water, mud, or brine to no less than 0.22 psi per foot of | ||||||
8 | casing string length or 1,500 psi, whichever is greater but | ||||||
9 | not to exceed 70% of the minimum internal yield, for at | ||||||
10 | least 30 minutes with less than a 5% pressure loss, except | ||||||
11 | that any casing string that will have pressure exerted on | ||||||
12 | it during stimulation of the well shall be tested to at | ||||||
13 | least the maximum anticipated treatment pressure. If the | ||||||
14 | pressure declines more than 5% or if there are other | ||||||
15 | indications of a leak, corrective action shall be taken | ||||||
16 | before conducting further drilling and high volume | ||||||
17 | horizontal hydraulic fracturing operations. The operator | ||||||
18 | shall contact the Department's District Office for any | ||||||
19 | county in which the well is located at least 24 hours prior | ||||||
20 | to conducting a pressure test to enable an inspector to be | ||||||
21 | present when the test is done. A record of the pressure | ||||||
22 | test must be maintained by the operator and must be | ||||||
23 | submitted to the Department on a form prescribed by the | ||||||
24 | Department prior to conducting high volume horizontal | ||||||
25 | hydraulic fracturing operations. The actual pressure must | ||||||
26 | not exceed the test pressure at any time during high volume |
| |||||||
| |||||||
1 | horizontal hydraulic fracturing operations. | ||||||
2 | (17) Any hydraulic fracturing string used in the high | ||||||
3 | volume horizontal hydraulic fracturing operations must be | ||||||
4 | either strung into a production liner or run with a packer | ||||||
5 | set at least 100 feet below the deepest cement top and must | ||||||
6 | be tested to not less than the maximum anticipated treating | ||||||
7 | pressure minus the annulus pressure applied between the | ||||||
8 | fracturing string and the production or immediate casing. | ||||||
9 | The pressure test shall be considered successful if the | ||||||
10 | pressure applied has been held for 30 minutes with no more | ||||||
11 | than 5% pressure loss. A function-tested relief valve and | ||||||
12 | diversion line must be installed and used to divert flow | ||||||
13 | from the hydraulic fracturing string-casing annulus to a | ||||||
14 | covered watertight steel tank in case of hydraulic | ||||||
15 | fracturing string failure. The relief valve must be set to | ||||||
16 | limit the annular pressure to no more than 95% of the | ||||||
17 | working pressure rating of the casings forming the annulus. | ||||||
18 | The annulus between the hydraulic fracturing string and | ||||||
19 | casing must be pressurized to at least 250 psi and | ||||||
20 | monitored. | ||||||
21 | (18) After a successful pressure test under paragraph | ||||||
22 | (16) of this subsection, a formation pressure integrity | ||||||
23 | test must be conducted below the surface casing and below | ||||||
24 | all intermediate casing. The operator shall notify the | ||||||
25 | Department's District Office for any county in which the | ||||||
26 | well is located at least 24 hours prior to conducting a |
| |||||||
| |||||||
1 | formation pressure integrity test to enable an inspector to | ||||||
2 | be present when the test is done. A record of the pressure | ||||||
3 | test must be maintained by the operator and must be | ||||||
4 | submitted to the Department on a form prescribed by the | ||||||
5 | Department prior to conducting high volume horizontal | ||||||
6 | hydraulic fracturing operations. The actual hydraulic | ||||||
7 | fracturing treatment pressure must not exceed the test | ||||||
8 | pressure at any time during high volume horizontal | ||||||
9 | hydraulic fracturing operations.
| ||||||
10 | (e) Blowout prevention standards shall be set as follows: | ||||||
11 | (1) The operator shall use blowout prevention | ||||||
12 | equipment after setting casing with a competent casing | ||||||
13 | seat. Blowout prevention equipment shall be in good | ||||||
14 | working condition at all times. | ||||||
15 | (2) The operator shall use pipe fittings, valves, | ||||||
16 | and unions placed on or connected to the blow-out | ||||||
17 | prevention systems that have a working pressure | ||||||
18 | capability that exceeds the anticipated pressures. | ||||||
19 | (3) During all drilling and completion operations | ||||||
20 | when a blowout preventer is installed, tested, or in | ||||||
21 | use, the operator or operator's designated | ||||||
22 | representative shall be present at the well site and | ||||||
23 | that person or personnel shall have a current well | ||||||
24 | control certification from an accredited training | ||||||
25 | program that is acceptable to the Department. The | ||||||
26 | certification shall be available at the well site and |
| |||||||
| |||||||
1 | provided to the Department upon request. | ||||||
2 | (4) Appropriate pressure control procedures and | ||||||
3 | equipment in proper working order must be properly | ||||||
4 | installed and employed while conducting drilling and | ||||||
5 | completion operations including tripping, logging, | ||||||
6 | running casing into the well, and drilling out | ||||||
7 | solid-core stage plugs. | ||||||
8 | (5) Pressure testing of the blowout preventer and | ||||||
9 | related equipment for any drilling or completion | ||||||
10 | operation must be performed. Testing must be conducted | ||||||
11 | in accordance with current industry standards | ||||||
12 | published by the American Petroleum Institute. Testing | ||||||
13 | of the blowout preventer shall include testing after | ||||||
14 | the blowout preventer is installed on the well but | ||||||
15 | prior to drilling below the last cemented casing seat. | ||||||
16 | Pressure control equipment, including the blowout | ||||||
17 | preventer, that fails any pressure test shall not be | ||||||
18 | used until it is repaired and passes the pressure test. | ||||||
19 | (6) A remote blowout preventer actuator, that is | ||||||
20 | powered by a source other than rig hydraulics, shall be | ||||||
21 | located at least 50 feet from the wellhead and have an | ||||||
22 | appropriate rated working pressure.
| ||||||
23 | Section 1-75. High volume horizontal hydraulic fracturing | ||||||
24 | operations. | ||||||
25 | (a) General. |
| |||||||
| |||||||
1 | (1) During all phases of high volume horizontal | ||||||
2 | hydraulic fracturing operations, the permittee shall | ||||||
3 | comply with all terms of the permit. | ||||||
4 | (2) All phases of high volume horizontal hydraulic | ||||||
5 | fracturing operations shall be conducted in a manner that | ||||||
6 | shall not pose a significant risk to public health, life, | ||||||
7 | property, aquatic life, or wildlife. | ||||||
8 | (3) The permittee shall notify the Department by phone, | ||||||
9 | electronic communication, or letter, at least 48 hours | ||||||
10 | prior to the commencement of high volume horizontal | ||||||
11 | hydraulic fracturing operations. | ||||||
12 | (b) Integrity tests and monitoring. | ||||||
13 | (1) Before the commencement of high volume horizontal | ||||||
14 | hydraulic fracturing operations, all mechanical integrity | ||||||
15 | tests required under subsection (d) of Section 1-70 and | ||||||
16 | this subsection must be successfully completed. | ||||||
17 | (2) Prior to commencing high volume horizontal | ||||||
18 | hydraulic fracturing operations and pumping of hydraulic | ||||||
19 | fracturing fluid, the injection lines and manifold, | ||||||
20 | associated valves, fracture head or tree and any other | ||||||
21 | wellhead component or connection not previously tested | ||||||
22 | must be tested with fresh water, mud, or brine to at least | ||||||
23 | the maximum anticipated treatment pressure for at least 30 | ||||||
24 | minutes with less than a 5% pressure loss. A record of the | ||||||
25 | pressure test must be maintained by the operator and made | ||||||
26 | available to the Department upon request. The actual high |
| |||||||
| |||||||
1 | volume horizontal hydraulic fracturing treatment pressure | ||||||
2 | must not exceed the test pressure at any time during high | ||||||
3 | volume horizontal hydraulic fracturing operations. | ||||||
4 | (3) The pressure exerted on treating equipment | ||||||
5 | including valves, lines, manifolds, hydraulic fracturing | ||||||
6 | head or tree, casing and hydraulic fracturing string, if | ||||||
7 | used, must not exceed 95% of the working pressure rating of | ||||||
8 | the weakest component. The high volume horizontal | ||||||
9 | hydraulic fracturing treatment pressure must not exceed | ||||||
10 | the test pressure of any given component at any time during | ||||||
11 | high volume horizontal hydraulic fracturing operations. | ||||||
12 | (4) During high volume horizontal hydraulic fracturing | ||||||
13 | operations, all annulus pressures, the injection pressure, | ||||||
14 | and the rate of injection shall be continuously monitored | ||||||
15 | and recorded. The records of the monitoring shall be | ||||||
16 | maintained by the operator and shall be provided to the | ||||||
17 | Department upon request at any time during the period up to | ||||||
18 | and including 5 years after the well is permanently plugged | ||||||
19 | or abandoned. | ||||||
20 | (5) High volume horizontal hydraulic fracturing | ||||||
21 | operations must be immediately suspended if any anomalous | ||||||
22 | pressure or flow condition or any other anticipated | ||||||
23 | pressure or flow condition is occurring in a way that | ||||||
24 | indicates the mechanical integrity of the well has been | ||||||
25 | compromised and continued operations pose a risk to the | ||||||
26 | environment. Remedial action shall be undertaken |
| |||||||
| |||||||
1 | immediately prior to recommencing high volume horizontal | ||||||
2 | hydraulic fracturing operations. The permittee shall | ||||||
3 | notify the Department within 1 hour of suspending | ||||||
4 | operations for any matters relating to the mechanical | ||||||
5 | integrity of the well or risk to the environment. | ||||||
6 | (c) Fluid and waste management. | ||||||
7 | (1) For the purposes of storage at the well site and | ||||||
8 | except as provided in paragraph (2) of this subsection, | ||||||
9 | hydraulic fracturing additives, hydraulic fracturing | ||||||
10 | fluid, hydraulic fracturing flowback, and produced water | ||||||
11 | shall be stored in above-ground tanks during all phases of | ||||||
12 | drilling, high volume horizontal hydraulic fracturing, and | ||||||
13 | production operations until removed for proper disposal. | ||||||
14 | For the purposes of centralized storage off site for | ||||||
15 | potential reuse prior to disposal, hydraulic fracturing | ||||||
16 | additives, hydraulic fracturing fluid, hydraulic | ||||||
17 | fracturing flowback, and produced water shall be stored in | ||||||
18 | above-ground tanks. | ||||||
19 | (2) In accordance with the plan required by paragraph | ||||||
20 | (11) of subsection (b) of Section 1-35 of this Act and as | ||||||
21 | approved by the Department, the use of a reserve pit is | ||||||
22 | allowed for the temporary storage of hydraulic fracturing | ||||||
23 | flowback. The reserve pit shall be used only in the event | ||||||
24 | of a lack of capacity for tank storage due to higher than | ||||||
25 | expected volume or rate of hydraulic fracturing flowback, | ||||||
26 | or other unanticipated flowback occurrence. Any reserve |
| |||||||
| |||||||
1 | pit must comply with the following construction standards | ||||||
2 | and liner specifications: | ||||||
3 | (A) the synthetic liner material shall have a | ||||||
4 | minimum thickness of 24 mils with high puncture and | ||||||
5 | tear strength and be impervious and resistant to | ||||||
6 | deterioration; | ||||||
7 | (B) the pit lining system shall be designed to have | ||||||
8 | a capacity at least equivalent to 110% of the maximum | ||||||
9 | volume of hydraulic fracturing flowback anticipated to | ||||||
10 | be recovered; | ||||||
11 | (C) the lined pit shall be constructed, installed, | ||||||
12 | and maintained in accordance with the manufacturers' | ||||||
13 | specifications and good engineering practices to | ||||||
14 | prevent overflow during any use; | ||||||
15 | (D) the liner shall have sufficient elongation to | ||||||
16 | cover the bottom and interior sides of the pit with the | ||||||
17 | edges secured with at least a 12 inch deep anchor | ||||||
18 | trench around the pit perimeter to prevent any slippage | ||||||
19 | or destruction of the liner materials; and | ||||||
20 | (E) the foundation for the liner shall be free of | ||||||
21 | rock and constructed with soil having a minimum | ||||||
22 | thickness of 12 inches after compaction covering the | ||||||
23 | entire bottom and interior sides of the pit. | ||||||
24 | (3) Fresh water may be stored in tanks or pits at the | ||||||
25 | election of the operator. | ||||||
26 | (4) Tanks required under this subsection must be |
| |||||||
| |||||||
1 | above-ground tanks that are closed, watertight, and will | ||||||
2 | resist corrosion. The permittee shall routinely inspect | ||||||
3 | the tanks for corrosion. | ||||||
4 | (5) Hydraulic fracturing fluids and hydraulic | ||||||
5 | fracturing flowback must be removed from the well site | ||||||
6 | within 60 days after completion of high volume horizontal | ||||||
7 | fracturing operations, except that any excess hydraulic | ||||||
8 | fracturing flowback captured for temporary storage in a | ||||||
9 | reserve pit as provided in paragraph (2) of this subsection | ||||||
10 | must be removed from the well site within 7 days. | ||||||
11 | (6) Tanks, piping, and conveyances, including valves, | ||||||
12 | must be constructed of suitable materials, be of sufficient | ||||||
13 | pressure rating, be able to resist corrosion, and be | ||||||
14 | maintained in a leak-free condition. Fluid transfer | ||||||
15 | operations from tanks to tanker trucks must be supervised | ||||||
16 | at the truck and at the tank if the tank is not visible to | ||||||
17 | the truck operator from the truck. During transfer | ||||||
18 | operations, all interconnecting piping must be supervised | ||||||
19 | if not visible to transfer personnel at the truck and tank. | ||||||
20 | (7) Hydraulic fracturing flowback must be tested for | ||||||
21 | volatile organic chemicals, semi-volatile organic | ||||||
22 | chemicals, inorganic chemicals, heavy metals, and | ||||||
23 | naturally occurring radioactive material prior to removal | ||||||
24 | from the site. Testing shall occur once per well site and | ||||||
25 | the analytical results shall be filed with the Department | ||||||
26 | and the Agency, and provided to the liquid oilfield waste |
| |||||||
| |||||||
1 | transportation and disposal operators. Prior to plugging | ||||||
2 | and site restoration, the ground adjacent to the storage | ||||||
3 | tanks and any hydraulic fracturing flowback reserve pit | ||||||
4 | must be measured for radioactivity. | ||||||
5 | (8) Hydraulic fracturing flowback may only be disposed | ||||||
6 | of by injection into a Class II injection well that is | ||||||
7 | below interface between fresh water and naturally | ||||||
8 | occurring Class IV groundwater. Produced water may be | ||||||
9 | disposed of by injection in a permitted enhanced oil | ||||||
10 | recovery operation. Hydraulic fracturing flowback and | ||||||
11 | produced water may be treated and recycled for use in | ||||||
12 | hydraulic fracturing fluid for high volume horizontal | ||||||
13 | hydraulic fracturing operations. | ||||||
14 | (9) Discharge of hydraulic fracturing fluids, | ||||||
15 | hydraulic fracturing flowback, and produced water into any | ||||||
16 | surface water or water drainage way is prohibited. | ||||||
17 | (10) Transport of all hydraulic fracturing fluids, | ||||||
18 | hydraulic fracturing flowback, and produced water by | ||||||
19 | vehicle for disposal must be undertaken by a liquid | ||||||
20 | oilfield waste hauler permitted by the Department under | ||||||
21 | Section 8c of the Illinois Oil and Gas Act. The liquid | ||||||
22 | oilfield waste hauler transporting hydraulic fracturing | ||||||
23 | fluids, hydraulic fracturing flowback, or produced water | ||||||
24 | under this Act shall comply with all laws, rules, and | ||||||
25 | regulations concerning liquid oilfield waste. | ||||||
26 | (11) Drill cuttings, drilling fluids, and drilling |
| |||||||
| |||||||
1 | wastes not containing oil-based mud or polymer-based mud | ||||||
2 | may be stored in tanks or pits. Pits used to store | ||||||
3 | cuttings, fluids, and drilling wastes from wells not using | ||||||
4 | fresh water mud shall be subject to the construction | ||||||
5 | standards identified in (2) of this Section. Drill cuttings | ||||||
6 | not contaminated with oil-based mud or polymer-based mud | ||||||
7 | may be disposed of onsite subject to the approval of the | ||||||
8 | Department. Drill cuttings contaminated with oil-based mud | ||||||
9 | or polymer-based mud shall not be disposed of on site. | ||||||
10 | Annular disposal of drill cuttings or fluid is prohibited. | ||||||
11 | (12) Any release of hydraulic fracturing fluid, | ||||||
12 | hydraulic fracturing additive, or hydraulic fracturing | ||||||
13 | flowback, used or generated during or after high volume | ||||||
14 | horizontal hydraulic fracturing operations shall be | ||||||
15 | immediately cleaned up and remediated pursuant to | ||||||
16 | Department requirements. Any release of hydraulic | ||||||
17 | fracturing fluid or hydraulic fracturing flowback in | ||||||
18 | excess of 1 barrel, shall be reported to the Department. | ||||||
19 | Any release of a hydraulic fracturing additive shall be | ||||||
20 | reported to the Department in accordance with the | ||||||
21 | appropriate reportable quantity thresholds established | ||||||
22 | under the federal Emergency Planning and Community | ||||||
23 | Right-to-Know Act as published in the Code of Federal | ||||||
24 | Regulations (CFR), 40 CFR Parts 355, 370, and 372, the | ||||||
25 | federal Comprehensive Environmental Response, | ||||||
26 | Compensation, and Liability Act as published in 40 CFR Part |
| |||||||
| |||||||
1 | 302, and subsection (r) of Section 112 of the Federal Clean | ||||||
2 | Air Act as published in 40 CFR Part 68. Any release of | ||||||
3 | produced water in excess of 5 barrels shall be cleaned up, | ||||||
4 | remediated, and reported pursuant to Department | ||||||
5 | requirements. | ||||||
6 | (13) Secondary containment for tanks required under | ||||||
7 | this subsection and additive staging areas is required. | ||||||
8 | Secondary containment measures may include, as deemed | ||||||
9 | appropriate by the Department, one or a combination of the | ||||||
10 | following: dikes, liners, pads, impoundments, curbs, | ||||||
11 | sumps, or other structures or equipment capable of | ||||||
12 | containing the substance. Any secondary containment must | ||||||
13 | be sufficient to contain 110% of the total capacity of the | ||||||
14 | single largest container or tank within a common | ||||||
15 | containment area. No more than one hour before initiating | ||||||
16 | any stage of the high volume horizontal hydraulic | ||||||
17 | fracturing operations, all secondary containment must be | ||||||
18 | visually inspected to ensure all structures and equipment | ||||||
19 | are in place and in proper working order. The results of | ||||||
20 | this inspection must be recorded and documented by the | ||||||
21 | operator, and available to the Department upon request. | ||||||
22 | (14) A report on the transportation and disposal of the | ||||||
23 | hydraulic fracturing fluids and hydraulic fracturing | ||||||
24 | flowback shall be prepared and included in the well file. | ||||||
25 | The report must include the amount of fluids transported, | ||||||
26 | identification of the company that transported the fluids, |
| |||||||
| |||||||
1 | the destination of the fluids, and the method of disposal. | ||||||
2 | (15) Operators operating wells permitted under this | ||||||
3 | Act must submit an annual report to the Department | ||||||
4 | detailing the management of any produced water associated | ||||||
5 | with the permitted well. The report shall be due to the | ||||||
6 | Department no later than April 30th of each year and shall | ||||||
7 | provide information on the operator's management of any | ||||||
8 | produced water for the prior calendar year. The report | ||||||
9 | shall contain information relative to the amount of | ||||||
10 | produced water the well permitted under this Act produced, | ||||||
11 | the method by which the produced water was disposed, and | ||||||
12 | the destination where the produced water was disposed in | ||||||
13 | addition to any other information the Department | ||||||
14 | determines is necessary by rule. | ||||||
15 | (d) Hydraulic fracturing fluid shall be confined to the | ||||||
16 | targeted formation designated in the permit. If the hydraulic | ||||||
17 | fracturing fluid or hydraulic fracturing flowback are | ||||||
18 | migrating into the freshwater zone or to the surface from the | ||||||
19 | well in question or from other wells, the permittee shall | ||||||
20 | immediately notify the Department and shut in the well until | ||||||
21 | remedial action that prevents the fluid migration is completed. | ||||||
22 | The permittee shall obtain the approval of the Department prior | ||||||
23 | to resuming operations. | ||||||
24 | (e) Emissions controls. | ||||||
25 | (1) This subsection applies to all horizontal wells | ||||||
26 | that are completed with high volume horizontal hydraulic |
| |||||||
| |||||||
1 | fracturing. | ||||||
2 | (2) Except as otherwise provided in paragraph (8) of | ||||||
3 | this subsection (e), permittees shall be responsible for | ||||||
4 | managing gas and hydrocarbon fluids produced during the | ||||||
5 | flowback period by routing recovered hydrocarbon fluids to | ||||||
6 | one or more storage vessels or re-injecting into the well | ||||||
7 | or another well, and routing recovered natural gas into a | ||||||
8 | flow line or collection system, re-injecting the gas into | ||||||
9 | the well or another well, using the gas as an on-site fuel | ||||||
10 | source, or using the gas for another useful purpose that a | ||||||
11 | purchased fuel or raw material would serve, with no direct | ||||||
12 | release to the atmosphere. | ||||||
13 | (3) If it is technically infeasible or economically | ||||||
14 | unreasonable to minimize emissions associated with the | ||||||
15 | venting of hydrocarbon fluids and natural gas during the | ||||||
16 | flowback period using the methods specified in paragraph | ||||||
17 | (2) of this subsection (e), the permittee shall capture and | ||||||
18 | direct the emissions to a completion combustion device, | ||||||
19 | except in conditions that may result in a fire hazard or | ||||||
20 | explosion, or where high heat emissions from a completion | ||||||
21 | combustion device may negatively impact waterways. | ||||||
22 | Completion combustion devices must be equipped with a | ||||||
23 | reliable continuous ignition source over the duration of | ||||||
24 | the flowback period. | ||||||
25 | (4) Except as otherwise provided in paragraph (8) of | ||||||
26 | this subsection (e), permittees shall be responsible for |
| |||||||
| |||||||
1 | minimizing the emissions associated with venting of | ||||||
2 | hydrocarbon fluids and natural gas during the production | ||||||
3 | phase by: | ||||||
4 | (A) routing the recovered fluids into storage | ||||||
5 | vessels and (i) routing the recovered gas into a gas | ||||||
6 | gathering line, collection system, or to a generator | ||||||
7 | for onsite energy generation, providing that gas to the | ||||||
8 | surface owner of the well site for use for heat or | ||||||
9 | energy generation, or (ii) using another method other | ||||||
10 | than venting or flaring; and | ||||||
11 | (B) employing sand traps, surge vessels, | ||||||
12 | separators, and tanks as soon as practicable during | ||||||
13 | cleanout operations to safely maximize resource | ||||||
14 | recovery and minimize releases to the environment. | ||||||
15 | (5) If the permittee establishes that it is technically | ||||||
16 | infeasible or economically unreasonable to minimize | ||||||
17 | emissions associated with the venting of hydrocarbon | ||||||
18 | fluids and natural gas during production using the methods | ||||||
19 | specified in paragraph (4) of this subsection (e), the | ||||||
20 | Department shall require the permittee to capture and | ||||||
21 | direct any natural gas produced during the production phase | ||||||
22 | to a flare. Any flare used pursuant to this paragraph shall | ||||||
23 | be equipped with a reliable continuous ignition source over | ||||||
24 | the duration of production. In order to establish technical | ||||||
25 | infeasibility or economic unreasonableness under this | ||||||
26 | paragraph (5), the permittee must demonstrate, for each |
| |||||||
| |||||||
1 | well site on an annual basis, that taking the actions | ||||||
2 | listed in paragraph (4) of this subsection (e) are not cost | ||||||
3 | effective based on a site-specific analysis. Permittees | ||||||
4 | that use a flare during the production phase for operations | ||||||
5 | other than emergency conditions shall file an updated | ||||||
6 | site-specific analysis annually with the Department. The | ||||||
7 | analysis shall be due one year from the date of the | ||||||
8 | previous submission and shall detail whether any changes | ||||||
9 | have occurred that alter the technical infeasibility or | ||||||
10 | economic unreasonableness of the permittee to reduce their | ||||||
11 | emissions in accordance with paragraph (4) of this | ||||||
12 | subsection (e). | ||||||
13 | (6) Uncontrolled emissions exceeding 6 tons per year | ||||||
14 | from storage tanks shall be recovered and routed to a flare | ||||||
15 | that is designed in accordance with 40 CFR 60.18 and is | ||||||
16 | certified by the manufacturer of the device. The permittee | ||||||
17 | shall maintain and operate the flare in accordance with | ||||||
18 | manufacturer specifications. Any flare used under this | ||||||
19 | paragraph must be equipped with a reliable continuous | ||||||
20 | ignition source over the duration of production. | ||||||
21 | (7) The Department may approve an exemption that waives | ||||||
22 | the flaring requirements of paragraphs (5) and (6) of this | ||||||
23 | subsection (e) only if the permittee demonstrates that the | ||||||
24 | use of the flare will pose a significant risk of injury or | ||||||
25 | property damage and that alternative methods of collection | ||||||
26 | will not threaten harm to the environment. In determining |
| |||||||
| |||||||
1 | whether to approve a waiver, the Department shall consider | ||||||
2 | the quantity of casinghead gas produced, the topographical | ||||||
3 | and climatological features at the well site, and the | ||||||
4 | proximity of agricultural structures, crops, inhabited | ||||||
5 | structures, public buildings, and public roads and | ||||||
6 | railways. | ||||||
7 | (8) For each wildcat well, delineation well, or low | ||||||
8 | pressure well, permittees shall be responsible for | ||||||
9 | minimizing the emissions associated with venting of | ||||||
10 | hydrocarbon fluids and natural gas during the flowback | ||||||
11 | period and production phase by capturing and directing the | ||||||
12 | emissions to a completion combustion device during the | ||||||
13 | flowback period and to a flare during the production phase, | ||||||
14 | except in conditions that may result in a fire hazard or | ||||||
15 | explosion, or where high heat emissions from a completion | ||||||
16 | combustion device or flare may negatively impact | ||||||
17 | waterways. Completion combustion devices and flares shall | ||||||
18 | be equipped with a reliable continuous ignition source over | ||||||
19 | the duration of the flowback period and the production | ||||||
20 | phase, as applicable. | ||||||
21 | (9) On or after July 1, 2015, all flares used under | ||||||
22 | paragraphs (5) and (8) of this subsection (e) shall (i) | ||||||
23 | operate with a combustion efficiency of at least 98% and in | ||||||
24 | accordance with 40 CFR 60.18; and (ii) be certified by the | ||||||
25 | manufacturer of the device. The permittee shall maintain | ||||||
26 | and operate the flare in accordance with manufacturer |
| |||||||
| |||||||
1 | specifications.
| ||||||
2 | (10) Permittees shall employ practices for control of
| ||||||
3 | fugitive dust related to their operations. These practices | ||||||
4 | shall include, but are not limited to, the use of speed | ||||||
5 | restrictions, regular road maintenance, and restriction of | ||||||
6 | construction activity during high-wind days. Additional | ||||||
7 | management practices such as road surfacing, wind breaks | ||||||
8 | and barriers, or automation of wells to reduce truck | ||||||
9 | traffic may also be required by the Department if | ||||||
10 | technologically feasible and economically reasonable to | ||||||
11 | minimize fugitive dust emissions. | ||||||
12 | (11) Permittees shall record and report to the | ||||||
13 | Department on an annual basis the amount of gas flared or | ||||||
14 | vented from each high volume horizontal hydraulic | ||||||
15 | fracturing well. Three years after the effective date of | ||||||
16 | the first high-volume horizontal hydraulic fracturing well | ||||||
17 | permit issued by the Department, and every 3 years | ||||||
18 | thereafter, the Department shall prepare a report that | ||||||
19 | analyzes the amount of gas that has been flared or vented | ||||||
20 | and make recommendations to the General Assembly on whether | ||||||
21 | steps should be taken to reduce the amount of gas that is | ||||||
22 | being flared or vented in this State. | ||||||
23 | (f) High volume horizontal hydraulic fracturing operations | ||||||
24 | completion report. Within 60 calendar days after the conclusion | ||||||
25 | of high volume horizontal hydraulic fracturing operations, the | ||||||
26 | operator shall file a high volume horizontal hydraulic |
| |||||||
| |||||||
1 | fracturing operations completion report with the Department. A | ||||||
2 | copy of each completion report submitted to the Department | ||||||
3 | shall be provided by the Department to the Illinois State | ||||||
4 | Geological Survey. The completion reports required by this | ||||||
5 | Section shall be considered public information and shall be | ||||||
6 | made available on the Department's website. The high volume | ||||||
7 | horizontal hydraulic fracturing operations completion report | ||||||
8 | shall contain the following information: | ||||||
9 | (1) the permittee name as listed in the permit | ||||||
10 | application; | ||||||
11 | (2) the dates of the high volume horizontal hydraulic | ||||||
12 | fracturing operations; | ||||||
13 | (3) the county where the well is located; | ||||||
14 | (4) the well name and Department reference number; | ||||||
15 | (5) the total water volume used in the high volume | ||||||
16 | horizontal hydraulic fracturing operations of the well, | ||||||
17 | and the type and total volume of the base fluid used if | ||||||
18 | something other than water; | ||||||
19 | (6) each source from which the water used in the high | ||||||
20 | volume horizontal hydraulic fracturing operations was | ||||||
21 | drawn, and the specific location of each source, including, | ||||||
22 | but not limited to, the name of the county and latitude and | ||||||
23 | longitude coordinates; | ||||||
24 | (7) the quantity of hydraulic fracturing flowback | ||||||
25 | recovered from the well; | ||||||
26 | (8) a description of how hydraulic fracturing flowback |
| |||||||
| |||||||
1 | recovered from the well was disposed and, if applicable, | ||||||
2 | reused; | ||||||
3 | (9) a chemical disclosure report identifying each | ||||||
4 | chemical and proppant used in hydraulic fracturing fluid | ||||||
5 | for each stage of the hydraulic fracturing operations | ||||||
6 | including the following: | ||||||
7 | (A) the total volume of water used in the hydraulic | ||||||
8 | fracturing treatment of the well or the type and total | ||||||
9 | volume of the base fluid used in the hydraulic | ||||||
10 | fracturing treatment, if something other than water; | ||||||
11 | (B) each hydraulic fracturing additive used in the | ||||||
12 | hydraulic fracturing fluid, including the trade name, | ||||||
13 | vendor, a brief descriptor of the intended use or | ||||||
14 | function of each hydraulic fracturing additive, and | ||||||
15 | the Material Safety Data Sheet (MSDS), if applicable; | ||||||
16 | (C) each chemical intentionally added to the base | ||||||
17 | fluid, including for each chemical, the Chemical | ||||||
18 | Abstracts Service number, if applicable; and | ||||||
19 | (D) the actual concentration in the base fluid, in | ||||||
20 | percent by mass, of each chemical intentionally added | ||||||
21 | to the base fluid;
| ||||||
22 | (10) all pressures recorded during the high volume | ||||||
23 | horizontal hydraulic fracturing operations; and | ||||||
24 | (11) any other reasonable or pertinent information | ||||||
25 | related to the conduct of the high volume horizontal | ||||||
26 | hydraulic fracturing operations the Department may request |
| |||||||
| |||||||
1 | or require by administrative rule.
| ||||||
2 | Section 1-77. Chemical disclosure; trade secret | ||||||
3 | protection. | ||||||
4 | (a) If the chemical disclosure information required by | ||||||
5 | paragraph (8) of subsection (b) of Section 1-35 of this Act is | ||||||
6 | not submitted at the time of permit application, then the | ||||||
7 | permittee, applicant, or person who will perform high volume | ||||||
8 | horizontal hydraulic fracturing operations at the well shall | ||||||
9 | submit this information to the Department in electronic format | ||||||
10 | no less than 21 calendar days prior to performing the high | ||||||
11 | volume horizontal hydraulic fracturing operations. The | ||||||
12 | permittee shall not cause or allow any stimulation of the well | ||||||
13 | if it is not in compliance with this Section. Nothing in this | ||||||
14 | Section shall prohibit the person performing high volume | ||||||
15 | horizontal hydraulic fracturing operations from adjusting or | ||||||
16 | altering the contents of the fluid during the treatment process | ||||||
17 | to respond to unexpected conditions, as long as the permittee | ||||||
18 | or the person performing the high volume horizontal hydraulic | ||||||
19 | fracturing operations notifies the Department by electronic | ||||||
20 | mail within 24 hours of the departure from the initial | ||||||
21 | treatment design and includes a brief explanation of the reason | ||||||
22 | for the departure.
| ||||||
23 | (b) No permittee shall use the services of another person | ||||||
24 | to perform high volume horizontal hydraulic fracturing | ||||||
25 | operations unless the person is in compliance with this |
| |||||||
| |||||||
1 | Section.
| ||||||
2 | (c) Any person performing high volume horizontal hydraulic | ||||||
3 | fracturing operations within this State shall:
| ||||||
4 | (1) be authorized to do business in this State; and | ||||||
5 | (2) maintain and disclose to the Department separate | ||||||
6 | and up-to-date master lists of: | ||||||
7 | (A) the base fluid to be used during any high | ||||||
8 | volume horizontal hydraulic fracturing operations | ||||||
9 | within this State;
| ||||||
10 | (B) all hydraulic fracturing additives to be used | ||||||
11 | during any high volume horizontal hydraulic fracturing | ||||||
12 | operations within this State; and
| ||||||
13 | (C) all chemicals and associated Chemical Abstract | ||||||
14 | Service numbers to be used in any high volume | ||||||
15 | horizontal hydraulic fracturing operations within this | ||||||
16 | State.
| ||||||
17 | (d) Persons performing high volume horizontal hydraulic | ||||||
18 | fracturing operations are prohibited from using any base fluid, | ||||||
19 | hydraulic fracturing additive, or chemical not listed on their | ||||||
20 | master lists disclosed under paragraph (2) of subsection (c) of | ||||||
21 | this Section.
| ||||||
22 | (e) The Department shall assemble and post up-to-date | ||||||
23 | copies of the master lists it receives under paragraph (2) of | ||||||
24 | subsection (c) of this Section on its website in accordance | ||||||
25 | with Section 1-110 of this Act.
| ||||||
26 | (f) Where an applicant, permittee, or the person performing |
| |||||||
| |||||||
1 | high volume horizontal hydraulic fracturing operations | ||||||
2 | furnishes chemical disclosure information to the Department | ||||||
3 | under this Section, Section 1-35, or Section 1-75 of this Act | ||||||
4 | under a claim of trade secret, the applicant, permittee, or | ||||||
5 | person performing high volume horizontal hydraulic fracturing | ||||||
6 | operations shall submit redacted and un-redacted copies of the | ||||||
7 | documents containing the information to the Department and the | ||||||
8 | Department shall use the redacted copies when posting materials | ||||||
9 | on its website.
| ||||||
10 | (g) Upon submission or within 5 calendar days of submission | ||||||
11 | of chemical disclosure information to the Department under this | ||||||
12 | Section, Section 1-35, or Section 1-75 of this Act under a | ||||||
13 | claim of trade secret, the person that claimed trade secret | ||||||
14 | protection shall provide a justification of the claim | ||||||
15 | containing the following: a detailed description of the | ||||||
16 | procedures used by the person to safeguard the information from | ||||||
17 | becoming available to persons other than those selected by the | ||||||
18 | person to have access to the information for limited purposes; | ||||||
19 | a detailed statement identifying the persons or class of | ||||||
20 | persons to whom the information has been disclosed; a | ||||||
21 | certification that the person has no knowledge that the | ||||||
22 | information has ever been published or disseminated or has | ||||||
23 | otherwise become a matter of general public knowledge; a | ||||||
24 | detailed discussion of why the person believes the information | ||||||
25 | to be of competitive value; and any other information that | ||||||
26 | shall support the claim.
|
| |||||||
| |||||||
1 | (h) Chemical disclosure information furnished under this | ||||||
2 | Section, Section 1-35, or Section 1-75 of this Act under a | ||||||
3 | claim of trade secret shall be protected from disclosure as a | ||||||
4 | trade secret if the Department determines that the statement of | ||||||
5 | justification demonstrates that:
| ||||||
6 | (1) the information has not been published, | ||||||
7 | disseminated, or otherwise become a matter of general | ||||||
8 | public knowledge; and
| ||||||
9 | (2) the information has competitive value. | ||||||
10 | There is a rebuttable presumption that the information has | ||||||
11 | not been published, disseminated, or otherwise become a matter | ||||||
12 | of general public knowledge if the person has taken reasonable | ||||||
13 | measures to prevent the information from becoming available to | ||||||
14 | persons other than those selected by the person to have access | ||||||
15 | to the information for limited purposes and the statement of | ||||||
16 | justification contains a certification that the person has no | ||||||
17 | knowledge that the information has ever been published, | ||||||
18 | disseminated, or otherwise become a matter of general public | ||||||
19 | knowledge.
| ||||||
20 | (i) Denial of a trade secret request under this Section | ||||||
21 | shall be appealable under the Administrative Review Law. | ||||||
22 | (j) A person whose request to inspect or copy a public | ||||||
23 | record is denied, in whole or in part, because of a grant of | ||||||
24 | trade secret protection may file a request for review with the | ||||||
25 | Public Access Counselor under Section 9.5 of the Freedom of | ||||||
26 | Information Act or for injunctive or declaratory relief under |
| |||||||
| |||||||
1 | Section 11 of the Freedom of Information Act for the purpose of | ||||||
2 | reviewing whether the Department properly determined that the | ||||||
3 | trade secret protection should be granted.
| ||||||
4 | (k) Except as otherwise provided in subsections (l) and (m) | ||||||
5 | of this Section, the Department must maintain the | ||||||
6 | confidentiality of chemical disclosure information furnished | ||||||
7 | under this Section, Section 1-35, or Section 1-75 of this Act | ||||||
8 | under a claim of trade secret, until the Department receives | ||||||
9 | official notification of a final order by a reviewing body with | ||||||
10 | proper jurisdiction that is not subject to further appeal | ||||||
11 | rejecting a grant of trade secret protection for that | ||||||
12 | information.
| ||||||
13 | (l) The Department shall adopt rules for the provision of | ||||||
14 | information furnished under a claim of trade secret to a health | ||||||
15 | professional who states a need for the information and | ||||||
16 | articulates why the information is needed. The health | ||||||
17 | professional may share that information with other persons as | ||||||
18 | may be professionally necessary, including, but not limited to, | ||||||
19 | the affected patient, other health professionals involved in | ||||||
20 | the treatment of the affected patient, the affected patient's | ||||||
21 | family members if the affected patient is unconscious, unable | ||||||
22 | to make medical decisions, or is a minor, the Centers for | ||||||
23 | Disease Control, and other government public health agencies. | ||||||
24 | Except as otherwise provided in this Section, any recipient of | ||||||
25 | the information shall not use the information for purposes | ||||||
26 | other than the health needs asserted in the request and shall |
| |||||||
| |||||||
1 | otherwise maintain the information as confidential. | ||||||
2 | Information so disclosed to a health professional shall in no | ||||||
3 | way be construed as publicly available. The holder of the trade | ||||||
4 | secret may request a confidentiality agreement consistent with | ||||||
5 | the requirements of this Section from all health professionals | ||||||
6 | to whom the information is disclosed as soon as circumstances | ||||||
7 | permit. The rules adopted by the Department shall also | ||||||
8 | establish procedures for providing the information in both | ||||||
9 | emergency and non-emergency situations.
| ||||||
10 | (m) In the event of a release of hydraulic fracturing | ||||||
11 | fluid, a hydraulic fracturing additive, or hydraulic | ||||||
12 | fracturing flowback, and when necessary to protect public | ||||||
13 | health or the environment, the Department may disclose | ||||||
14 | information furnished under a claim of trade secret to the | ||||||
15 | relevant county public health director or emergency manager, | ||||||
16 | the relevant fire department chief, the Director of the | ||||||
17 | Illinois Department of Public Health, the Director of the | ||||||
18 | Illinois Department of Agriculture, and the Director of the | ||||||
19 | Illinois Environmental Protection Agency upon request by that | ||||||
20 | individual. The Director of the Illinois Department of Public | ||||||
21 | Health, and the Director of the Illinois Environmental | ||||||
22 | Protection Agency, and the Director of the Illinois Department | ||||||
23 | of Agriculture may disclose this information to staff members | ||||||
24 | under the same terms and conditions as apply to the Director of | ||||||
25 | Natural Resources. Except as otherwise provided in this | ||||||
26 | Section, any recipient of the information shall not use the |
| |||||||
| |||||||
1 | information for purposes other than to protect public health or | ||||||
2 | the environment and shall otherwise maintain the information as | ||||||
3 | confidential. Information disclosed to staff shall in no way be | ||||||
4 | construed as publicly available. The holder of the trade secret | ||||||
5 | information may request a confidentiality agreement consistent | ||||||
6 | with the requirements of this Section from all persons to whom | ||||||
7 | the information is disclosed as soon as circumstances permit.
| ||||||
8 | Section 1-80. Water quality monitoring. | ||||||
9 | (a) Each applicant for a high volume horizontal hydraulic | ||||||
10 | fracturing permit shall provide the Department with a work plan | ||||||
11 | to ensure accurate and complete sampling and testing as | ||||||
12 | required under this Section. The work plan shall ensure | ||||||
13 | compliance with the requirements of this Section and include, | ||||||
14 | at a minimum, the following: | ||||||
15 | (1) information identifying all water sources within | ||||||
16 | the range of testing under this Section; | ||||||
17 | (2) a sampling plan and protocol, including | ||||||
18 | notification to the Department at least 7 calendar days | ||||||
19 | prior to sample collection; | ||||||
20 | (3) the name and contact information of an independent | ||||||
21 | third party under the supervision of a professional | ||||||
22 | engineer or professional geologist that shall be | ||||||
23 | designated to conduct sampling to establish a baseline as | ||||||
24 | provided for under subsection (b) of this Section; | ||||||
25 | (4) the name and contact information of an independent |
| |||||||
| |||||||
1 | third party under the supervision of a professional | ||||||
2 | engineer or professional geologist that shall be | ||||||
3 | designated to conduct sampling to establish compliance | ||||||
4 | with monitoring as provided within subsection (c) of this | ||||||
5 | Section; | ||||||
6 | (5) the name and contact information of an independent | ||||||
7 | testing laboratory, certified to perform the required | ||||||
8 | laboratory method, to conduct the analysis required under | ||||||
9 | subsections (b) and (c) of this Section; | ||||||
10 | (6) proof of access and the right to test within the | ||||||
11 | area for testing prescribed within subsection (b) of this | ||||||
12 | Section during the duration of high volume horizontal | ||||||
13 | hydraulic fracturing operations covered under the permit | ||||||
14 | application, and copies of any non-disclosure agreements | ||||||
15 | made under subsection (d) of this Section; and | ||||||
16 | (7) identification of practicable contingency | ||||||
17 | measures, including provision for alternative drinking | ||||||
18 | water supplies, which could be implemented in the event of | ||||||
19 | pollution or diminution of a water source as provided for | ||||||
20 | in Section 1-83. | ||||||
21 | (b) Prior to conducting high volume horizontal hydraulic | ||||||
22 | fracturing operations on a well, a permittee shall retain an | ||||||
23 | independent third party, as required within paragraph (3) of | ||||||
24 | subsection (a) of this Section, and shall conduct baseline | ||||||
25 | water quality sampling of all water sources within 1,500 feet | ||||||
26 | of the well site prior to any fracturing activities. Where (i) |
| |||||||
| |||||||
1 | there are no groundwater wells within 1,500 feet of a well | ||||||
2 | site, or access to groundwater wells within 1,500 feet of the | ||||||
3 | well site has been denied under subsection (d) of this Section, | ||||||
4 | and (ii) the proposed well site is located within 1,500 feet | ||||||
5 | horizontally from any portion of an aquifer, the permittee | ||||||
6 | shall conduct sampling of the aquifer at the closest | ||||||
7 | groundwater well with access to the aquifer to which the | ||||||
8 | permittee has not been denied access under subsection (d) of | ||||||
9 | this Section. Installation of a groundwater monitoring well is | ||||||
10 | not required to satisfy the sampling requirements of this | ||||||
11 | Section. The samples collected by the independent third party, | ||||||
12 | under the supervision of a professional engineer or | ||||||
13 | professional geologist, shall be analyzed by an independent | ||||||
14 | testing laboratory in accordance with paragraph (4) of | ||||||
15 | subsection (a) of this Section. Testing shall be done by | ||||||
16 | collection of a minimum of 3 samples for each water source | ||||||
17 | required to be tested under this Section. The permittee shall, | ||||||
18 | within 7 calendar days after receipt of results of tests | ||||||
19 | conducted under this subsection, submit the results to the | ||||||
20 | Department or to the owner of the water source under a | ||||||
21 | non-disclosure agreement under subsection (d) of this Section. | ||||||
22 | The Department shall post the results on its website within 7 | ||||||
23 | calendar days after receipt. The results shall, at a minimum, | ||||||
24 | include a detailed description of the sampling and testing | ||||||
25 | conducted under this subsection, the chain of custody of the | ||||||
26 | samples, and quality control of the testing. |
| |||||||
| |||||||
1 | (c) After baseline tests are conducted under subsection (b) | ||||||
2 | of this Section and following issuance of a permit by the | ||||||
3 | Department, the permittee shall have all water sources which | ||||||
4 | are subjected to sampling under subsection (b) of this Section | ||||||
5 | sampled and tested in the same manner 6 months, 18 months, and | ||||||
6 | 30 months after the high volume horizontal hydraulic fracturing | ||||||
7 | operations have been completed. Sampling of a water source | ||||||
8 | under this subsection is not required if the water source was | ||||||
9 | sampled under this subsection or subsection (b) within the | ||||||
10 | previous month. The permittee shall notify the Department at | ||||||
11 | least 7 calendar days prior to taking the sample. The permittee | ||||||
12 | shall, within 7 calendar days after receipt of results of tests | ||||||
13 | conducted under this subsection (c), submit the results to the | ||||||
14 | Department or to the owner of the water source pursuant to a | ||||||
15 | non-disclosure agreement under subsection (d) of this Section. | ||||||
16 | The results shall include, at a minimum, a detailed description | ||||||
17 | of the sampling and testing conducted under this subsection, | ||||||
18 | the chain of custody of the samples, and quality control of the | ||||||
19 | testing. | ||||||
20 | (d) Sampling of private water wells or ponds wholly | ||||||
21 | contained within private property shall not be required where | ||||||
22 | the owner of the private property declines, expressly and in | ||||||
23 | writing, to provide access or permission for sampling. If the | ||||||
24 | owner of the private property declines to provide proof of his | ||||||
25 | or her refusal to allow access in writing, the operator shall | ||||||
26 | provide the Department evidence as to the good faith efforts |
| |||||||
| |||||||
1 | that were made to secure the required documentation. Permits | ||||||
2 | issued under this Act cannot be denied if the owner of the | ||||||
3 | private property declines to provide proof of his or her | ||||||
4 | refusal to allow access in writing and the permittee provides | ||||||
5 | evidence that good faith efforts were made to gain access for | ||||||
6 | the purposes of conducting tests. The owners of private | ||||||
7 | property may condition access or permission for sampling of a | ||||||
8 | private water well or pond wholly within the property or a | ||||||
9 | portion of any perennial stream or river that flows through the | ||||||
10 | property under a non-disclosure agreement, which must include | ||||||
11 | the following terms and conditions: | ||||||
12 | (1) the permittee shall provide the results of the | ||||||
13 | water quality testing to the property owners;
| ||||||
14 | (2) the permittee shall retain the results of the water | ||||||
15 | quality testing until at least one year after completion of | ||||||
16 | all monitoring under this Section for review by the | ||||||
17 | Department upon request;
| ||||||
18 | (3) the permittee shall not file with the Department | ||||||
19 | the results of the water quality testing, except under | ||||||
20 | paragraph (4) of subsection (d) of this Section; and
| ||||||
21 | (4) the permittee shall notify the Department within 7 | ||||||
22 | calendar days of its receipt of the water quality data | ||||||
23 | where any testing under subsection (c) of this Section | ||||||
24 | indicates that concentrations exceed the standards or | ||||||
25 | criteria referenced in the definition of pollution or | ||||||
26 | diminution under Section 1-5 of this Act. |
| |||||||
| |||||||
1 | (e) Each set of samples collected under subsections (b) and | ||||||
2 | (c) of this Section shall include analyses for: | ||||||
3 | (1) pH; | ||||||
4 | (2) total dissolved solids, dissolved methane, | ||||||
5 | dissolved propane, dissolved ethane, alkalinity, and | ||||||
6 | specific conductance; | ||||||
7 | (3) chloride, sulfate, arsenic, barium, calcium, | ||||||
8 | chromium, iron, magnesium, selenium, cadmium, lead, | ||||||
9 | manganese, mercury, and silver; | ||||||
10 | (4) BTEX; and | ||||||
11 | (5) gross alpha and beta particles to determine the | ||||||
12 | presence of any naturally occurring radioactive materials.
| ||||||
13 | Sampling shall, at a minimum, be consistent with the work | ||||||
14 | plan and allow for a determination of whether any hydraulic | ||||||
15 | fracturing additive or other contaminant has caused pollution | ||||||
16 | or diminution for purposes of Sections 1-83 and 1-85 of this | ||||||
17 | Act.
| ||||||
18 | Section 1-83. Order authority. | ||||||
19 | (a) Any person who has reason to believe they have incurred | ||||||
20 | pollution or diminution of a water source as a result of a high | ||||||
21 | volume horizontal hydraulic fracturing treatment of a well may | ||||||
22 | notify the Department and request that an investigation be | ||||||
23 | conducted. | ||||||
24 | (b) Within 30 calendar days after notification, the | ||||||
25 | Department shall initiate the investigation of the claim and |
| |||||||
| |||||||
1 | make a reasonable effort to reach a determination within 180 | ||||||
2 | calendar days after notification. The Department may contact | ||||||
3 | the Agency to seek the Agency's assistance in water quality | ||||||
4 | sampling. The Agency may seek cost recovery under subsection | ||||||
5 | (e) of Section 1-87 of this Act and recover all costs for | ||||||
6 | samples taken for the investigation under this Section. | ||||||
7 | (c) Any person conducting or who has conducted high volume | ||||||
8 | horizontal hydraulic fracturing operations shall supply any | ||||||
9 | information requested by the Department to assist the | ||||||
10 | Department. The Department shall give due consideration to any | ||||||
11 | information submitted during the course of the investigation. | ||||||
12 | (d) If sampling results or other information obtained as | ||||||
13 | part of the investigation or the results of tests conducted | ||||||
14 | under subsection (c) of Section 1-80 of this Act indicate that | ||||||
15 | concentrations exceed the standards or criteria referenced by | ||||||
16 | pollution or diminution under Section 1-5 of this Act, the | ||||||
17 | Department shall issue an order to the permittee as necessary | ||||||
18 | to require permanent or temporary replacement of a water | ||||||
19 | source. In addition to any other penalty available under the | ||||||
20 | law and consistent with the Department's order, the permittee | ||||||
21 | shall restore or replace the affected supply with an | ||||||
22 | alternative source of water adequate in quantity and quality | ||||||
23 | for the purposes served by the water source. The quality of a | ||||||
24 | restored or replaced water source shall meet or exceed the | ||||||
25 | quality of the original water source based upon the results of | ||||||
26 | the baseline test results under subsection (b) of Section 1-80 |
| |||||||
| |||||||
1 | for that water source, or other available information. The | ||||||
2 | Department may require the permittee to take immediate action, | ||||||
3 | including but not limited to, repair, replacement, alteration, | ||||||
4 | or prohibition of operation of equipment permitted by the | ||||||
5 | Department. The Department may issue conditions within any | ||||||
6 | order to protect the public health or welfare or the | ||||||
7 | environment. | ||||||
8 | (e) Within 15 calendar days after a determination has been | ||||||
9 | made regarding the pollution or diminution, the Department | ||||||
10 | shall provide notice of its findings and the orders, if any, to | ||||||
11 | all persons that use the water source for domestic, | ||||||
12 | agricultural, industrial, or any other legitimate beneficial | ||||||
13 | uses. | ||||||
14 | (f) Upon issuance of an Order or a finding of pollution or | ||||||
15 | diminution under subsection (d) of this Section, the Department | ||||||
16 | shall contact the Agency and forward all information from the | ||||||
17 | investigation to the Agency. The Agency shall investigate the | ||||||
18 | potential for violations as designated within Section 1-87 of | ||||||
19 | this Act. | ||||||
20 | (g) Reports of potential cases of water pollution that may | ||||||
21 | be associated with high volume horizontal hydraulic fracturing | ||||||
22 | operations may be submitted electronically. The Department | ||||||
23 | shall establish a format for these reports to be submitted | ||||||
24 | through the website developed under Section 1-110 of this Act. | ||||||
25 | The Department shall electronically provide these reports to | ||||||
26 | the Agency. |
| |||||||
| |||||||
1 | (h) The Department shall publish, on its website, lists of | ||||||
2 | confirmed cases of pollution or diminution that result from | ||||||
3 | high volume horizontal hydraulic fracturing operations. This | ||||||
4 | information shall be searchable by county. | ||||||
5 | (i) Nothing in this Section shall prevent the Department | ||||||
6 | from issuing a cessation order under Section 8a of the Illinois | ||||||
7 | Oil and Gas Act.
| ||||||
8 | Section 1-85. Presumption of pollution or diminution. | ||||||
9 | (a) This Section establishes a rebuttable presumption for | ||||||
10 | the purposes of evidence and liability under State law | ||||||
11 | regarding claims of pollution or diminution of a water source | ||||||
12 | and for use regarding the investigation and order authority | ||||||
13 | under Section 1-83. | ||||||
14 | (b) Unless rebutted by a defense established in subsection | ||||||
15 | (c) of this Section, it shall be presumed that any person | ||||||
16 | conducting or who has conducted high volume horizontal | ||||||
17 | hydraulic fracturing operations shall be liable for pollution | ||||||
18 | or diminution of a water supply if: | ||||||
19 | (1) the water source is within 1,500 feet of the well | ||||||
20 | site; | ||||||
21 | (2) water quality data showed no pollution or | ||||||
22 | diminution prior to the start of high volume horizontal | ||||||
23 | hydraulic fracturing operations; and | ||||||
24 | (3) the pollution or diminution occurred during high | ||||||
25 | volume horizontal hydraulic fracturing operations or no |
| |||||||
| |||||||
1 | more than 30 months after the completion of the high volume | ||||||
2 | horizontal hydraulic fracturing operations. | ||||||
3 | (c) To rebut the presumption established under this | ||||||
4 | Section, a person presumed responsible must affirmatively | ||||||
5 | prove by clear and convincing evidence any of the following: | ||||||
6 | (1) the water source is not within 1,500 feet of the | ||||||
7 | well site; | ||||||
8 | (2) the pollution or diminution occurred prior to high | ||||||
9 | volume horizontal hydraulic fracturing operations or more | ||||||
10 | than 30 months after the completion of the high volume | ||||||
11 | horizontal hydraulic fracturing operations; or | ||||||
12 | (3) the pollution or diminution occurred as the result | ||||||
13 | of an identifiable cause other than the high volume | ||||||
14 | horizontal hydraulic fracturing operations.
| ||||||
15 | Section 1-87. Water quality investigation and enforcement. | ||||||
16 | (a) No person shall cause or allow high volume horizontal | ||||||
17 | hydraulic fracturing operations permitted under this Act to | ||||||
18 | violate Section 12 of the Illinois Environmental Protection Act | ||||||
19 | or surface water or groundwater regulations adopted under the | ||||||
20 | Illinois Environmental Protection Act. | ||||||
21 | (b) The Agency shall have the duty to investigate | ||||||
22 | complaints that activities under this Act have caused a | ||||||
23 | violation of Section 12 of the Illinois Environmental | ||||||
24 | Protection Act or surface or groundwater rules adopted under | ||||||
25 | the Illinois Environmental Protection Act. Any action taken by |
| |||||||
| |||||||
1 | the Agency in enforcing these violations shall be taken under | ||||||
2 | and consistent with the Illinois Environmental Protection Act, | ||||||
3 | including but not limited to, the Agency's authority to seek a | ||||||
4 | civil or criminal cause of action under that Act. The test | ||||||
5 | results under subsections (b) and (c) of Section 1-80 of this | ||||||
6 | Act may be considered by the Agency during an investigation | ||||||
7 | under this Section. | ||||||
8 | (c) A person who has reason to believe they have incurred | ||||||
9 | contamination of a water source as a result of high volume | ||||||
10 | horizontal hydraulic fracturing may notify the Agency and | ||||||
11 | request an investigation be conducted. The Agency shall forward | ||||||
12 | this request to the Department for consideration of an | ||||||
13 | investigation under Section 1-83 of this Act. If the Agency is | ||||||
14 | provided with notice under subsection (f) of Section 1-83, the | ||||||
15 | Agency shall conduct an investigation to determine whether | ||||||
16 | pollution or diminution is continuing to occur at the location | ||||||
17 | subject to the order, as well as locations identified by the | ||||||
18 | Department or at any other water source within 1,500 feet of | ||||||
19 | the well site. Any person conducting or who has conducted high | ||||||
20 | volume horizontal hydraulic fracturing operations shall supply | ||||||
21 | any information requested to assist the Agency in its | ||||||
22 | investigation. The Agency shall give due consideration to any | ||||||
23 | information submitted during the course of the investigation. | ||||||
24 | (d) Pollution or diminution is a violation of this Act and | ||||||
25 | may be pursued by the Department subject to the procedures and | ||||||
26 | remedies under Sections 1-100 and 1-105 of this Act. |
| |||||||
| |||||||
1 | (e) If an Agency investigation under Section 1-83 or | ||||||
2 | subsection (c) of this Section confirms that the cause of the | ||||||
3 | pollution, diminution, or water pollution is attributable to | ||||||
4 | high volume horizontal hydraulic fracturing operations, in | ||||||
5 | addition to any other relief available under law, the permittee | ||||||
6 | shall be required to reimburse the costs and reasonable | ||||||
7 | expenses incurred by the Agency for all activities related to | ||||||
8 | the investigation and cleanup. These costs shall include, but | ||||||
9 | not be limited to, inspections, investigations, analyses, | ||||||
10 | personnel, direct and indirect costs, studies, assessments, | ||||||
11 | reports, and review and evaluation of that data, as well as | ||||||
12 | costs under the Agency's review of whether the quality of a | ||||||
13 | restored or replaced water supply meets or exceeds the quality | ||||||
14 | of the water supply before it was affected by the permittee. | ||||||
15 | Costs shall be reimbursed to the Agency by the permittee within | ||||||
16 | 30 calendar days after receipt of a written request for | ||||||
17 | reimbursement by the Agency. For all costs that remain unpaid | ||||||
18 | following 30 calendar days after receipt of a written request | ||||||
19 | for reimbursement, the Agency may institute a civil action for | ||||||
20 | cost recovery under subsection (e) of Section 1-101 of this | ||||||
21 | Act. Failure to reimburse the Agency within 30 calendar days | ||||||
22 | after receipt of the written request for reimbursement is a | ||||||
23 | violation of this Act. Reimbursement of costs collected under | ||||||
24 | this subsection shall be deposited by the Agency into the | ||||||
25 | Illinois Clean Water Fund.
|
| |||||||
| |||||||
1 | Section 1-95. Plugging; restoration. | ||||||
2 | (a) The permittee shall perform and complete plugging of | ||||||
3 | the well and restoration of the well site in accordance with | ||||||
4 | the Illinois Oil and Gas Act and any and all rules adopted | ||||||
5 | thereunder. The permittee shall bear all costs related to | ||||||
6 | plugging of the well and reclamation of the well site. If the | ||||||
7 | permittee fails to plug the well in accordance with this | ||||||
8 | Section, the owner of the well shall be responsible for | ||||||
9 | complying with this Section. | ||||||
10 | (b) Prior to conducting high volume horizontal hydraulic | ||||||
11 | fracturing operations at a well site, the permittee shall cause | ||||||
12 | to be plugged all previously unplugged well bores within 750 | ||||||
13 | feet of any part of the horizontal well bore that penetrated | ||||||
14 | within 400 vertical feet of the formation that will be | ||||||
15 | stimulated as part of the high volume horizontal hydraulic | ||||||
16 | fracturing operations. | ||||||
17 | (c) For well sites where high volume horizontal hydraulic | ||||||
18 | fracturing operations were permitted to occur, the operator | ||||||
19 | shall restore any lands used by the operator other than the | ||||||
20 | well site and production facility to a condition as closely | ||||||
21 | approximating the pre-drilling conditions that existed before | ||||||
22 | the land was disturbed for any stage of site preparation | ||||||
23 | activities, drilling, and high volume horizontal hydraulic | ||||||
24 | fracturing operations. Restoration shall be commenced within 6 | ||||||
25 | months of completion of the well site and completed within 12 | ||||||
26 | months. Restoration shall include, but is not limited to, |
| |||||||
| |||||||
1 | repair of tile lines, repair of fences and barriers, mitigation | ||||||
2 | of soil compaction and rutting, application of fertilizer or | ||||||
3 | lime to restore the fertility of disturbed soil, and repair of | ||||||
4 | soil conservation practices such as terraces and grassed | ||||||
5 | waterways. | ||||||
6 | (d) Unless contractually agreed to the contrary by the | ||||||
7 | permittee and surface owner, the permittee shall restore the | ||||||
8 | well site and production facility in accordance with the | ||||||
9 | applicable restoration requirements in subsection (c) of this | ||||||
10 | Section and shall remove all equipment and materials involved | ||||||
11 | in site preparation, drilling, and high volume horizontal | ||||||
12 | hydraulic fracturing operations, including tank batteries, | ||||||
13 | rock and concrete pads, oil field debris, injection and flow | ||||||
14 | lines at or above the surface, electric power lines and poles | ||||||
15 | extending on or above the surface, tanks, fluids, pipes at or | ||||||
16 | above the surface, secondary containment measures, rock or | ||||||
17 | concrete bases, drilling equipment and supplies, and any and | ||||||
18 | all other equipment, facilities, or materials used during any | ||||||
19 | stage of site preparation work, drilling, or hydraulic | ||||||
20 | fracturing operations at the well site. Work on the removal of | ||||||
21 | equipment and materials at the well site shall begin within 6 | ||||||
22 | months after plugging the final well on the well site and be | ||||||
23 | completed no later than 12 months after the last producing well | ||||||
24 | on the well site has been plugged. Roads installed as part of | ||||||
25 | the oil and gas operation may be left in place if provided in | ||||||
26 | the lease or pursuant to agreement with the surface owner, as |
| |||||||
| |||||||
1 | applicable.
| ||||||
2 | Section 1-96. Seismicity. | ||||||
3 | (a) For purposes of this Section, "induced seismicity" | ||||||
4 | means an earthquake event that is felt, recorded by the | ||||||
5 | national seismic network, and attributable to a Class II | ||||||
6 | injection well used for disposal of flow-back and produced | ||||||
7 | fluid from hydraulic fracturing operations. | ||||||
8 | (b) The Department shall adopt rules, in consultation with | ||||||
9 | the Illinois State Geological Survey, establishing a protocol | ||||||
10 | for controlling operational activity of Class II injection | ||||||
11 | wells in an instance of induced seismicity. | ||||||
12 | (c) The rules adopted by the Department under this Section | ||||||
13 | shall employ a "traffic light" control system allowing for low | ||||||
14 | levels of seismicity while including additional monitoring and | ||||||
15 | mitigation requirements when seismic events are of sufficient | ||||||
16 | intensity to result in a concern for public health and safety.
| ||||||
17 | (d) The additional mitigation requirements referenced in | ||||||
18 | subsection (c) of this Section shall provide for either the | ||||||
19 | scaling back of injection operations with monitoring for | ||||||
20 | establishment of a potentially safe operation level or the | ||||||
21 | immediate cessation of injection operations.
| ||||||
22 | Section 1-97. Department mapping and reporting. On or | ||||||
23 | before February 1, 2014, the Department shall, with the | ||||||
24 | assistance of the Illinois State Geological Survey, submit a |
| |||||||
| |||||||
1 | report to the General Assembly and Governor identifying the | ||||||
2 | following in Illinois and include any recommendations for | ||||||
3 | additional legislative or administrative action on these | ||||||
4 | items: | ||||||
5 | (a) the location of resources of shale gas and oil, | ||||||
6 | conventional gas and oil, and process materials, including sand | ||||||
7 | and other naturally occurring geologic materials used in high | ||||||
8 | volume horizontal hydraulic fracturing operations;
| ||||||
9 | (b) the potential impacts of high volume horizontal | ||||||
10 | hydraulic fracturing operations on:
| ||||||
11 | (1) sites owned, managed or leased by the Department;
| ||||||
12 | (2) nature preserves;
| ||||||
13 | (3) sites on the Register of Land and Water Reserves;
| ||||||
14 | (4) the availability of water for human consumption and | ||||||
15 | general domestic use; and
| ||||||
16 | (5) the potential for influencing natural seismic | ||||||
17 | activity.
| ||||||
18 | Two years after the effective date of the first high volume | ||||||
19 | horizontal hydraulic fracturing permit issued by the | ||||||
20 | Department, and every 3 years thereafter, the Department shall | ||||||
21 | prepare a report that examines the following:
| ||||||
22 | (1) the number of high volume horizontal hydraulic | ||||||
23 | fracturing permits issued by the Department, on an annual | ||||||
24 | basis; | ||||||
25 | (2) a map showing the locations in this State where | ||||||
26 | high volume horizontal hydraulic fracturing operations |
| |||||||
| |||||||
1 | have been permitted by the Department; | ||||||
2 | (3) identification of the latest scientific research, | ||||||
3 | best practices, and technological improvements related to | ||||||
4 | high volume horizontal hydraulic fracturing operations and | ||||||
5 | methods to protect the environment and public health; | ||||||
6 | (4) any confirmed environmental impacts in this State | ||||||
7 | due to high volume horizontal hydraulic fracturing | ||||||
8 | operations, including, but not limited to, any reportable | ||||||
9 | release of hydraulic fracturing flowback, hydraulic | ||||||
10 | fracturing fluid, and hydraulic fracturing additive; | ||||||
11 | (5) confirmed public health impacts in this State due | ||||||
12 | to high volume horizontal hydraulic fracturing operations; | ||||||
13 | (6) a comparison of the revenues generated under | ||||||
14 | subsection (e) of Section 1-35 of this Act to the | ||||||
15 | Department's costs associated with implementing and | ||||||
16 | administering provisions of this Act; | ||||||
17 | (7) a comparison of the revenues generated under | ||||||
18 | subsection (e) of Section 1-87 of this Act to the Agency's | ||||||
19 | costs associated with implementing and administering | ||||||
20 | provisions of this Act; | ||||||
21 | (7.5) a summary of revenues generated annually from | ||||||
22 | income, ad valorem, sales, and any other State and local | ||||||
23 | taxes applicable to activity permitted under this Act by | ||||||
24 | the Department, including an estimate of the income tax | ||||||
25 | generated from lease payments and royalty payments; | ||||||
26 | (8) a description of any modifications to existing |
| |||||||
| |||||||
1 | programs, practices, or rules related to high volume | ||||||
2 | horizontal hydraulic fracturing operations made by the | ||||||
3 | Department; | ||||||
4 | (9) any problems or issues the Department identifies as | ||||||
5 | it implements and administers the provisions of this Act; | ||||||
6 | (10) any recommendations for legislative action by the | ||||||
7 | General Assembly to address the findings in the report; and | ||||||
8 | (11) any other information the Department deems | ||||||
9 | relevant regarding its specific experiences implementing | ||||||
10 | and administering the provisions of this Act and, | ||||||
11 | generally, high volume horizontal hydraulic fracturing | ||||||
12 | operations. | ||||||
13 | The first report shall also examine any studies issued by | ||||||
14 | the United States Environmental Protection Agency regarding | ||||||
15 | high volume horizontal hydraulic fracturing operations. The | ||||||
16 | report required by this Section shall be provided to the | ||||||
17 | General Assembly and Governor.
| ||||||
18 | Section 1-98. Hydraulic fracturing completion reporting.
| ||||||
19 | (a) For the purposes of this Section, "hydraulic fracturing | ||||||
20 | operations" means all stages of a stimulation treatment of a | ||||||
21 | horizontal well as defined by this Act by the pressurized | ||||||
22 | application of more than 80,000 gallons but less than 300,001 | ||||||
23 | gallons of hydraulic fracturing fluid and proppant to initiate | ||||||
24 | or propagate fractures in a geologic formation to enhance | ||||||
25 | extraction or production of oil or gas.
|
| |||||||
| |||||||
1 | (b) Within 60 calendar days after the conclusion of | ||||||
2 | hydraulic fracturing operations, the operator shall file a | ||||||
3 | hydraulic fracturing operations completion report with the | ||||||
4 | Department. The hydraulic fracturing operations completion | ||||||
5 | report shall contain the following information:
| ||||||
6 | (1) the name and location of the well;
| ||||||
7 | (2) the total and per-stage gallons of hydraulic | ||||||
8 | fracturing fluid used at the well;
| ||||||
9 | (3) depth of the wellbore (including both total | ||||||
10 | vertical depth and total measured depth);
| ||||||
11 | (4) length of horizontal wellbore;
| ||||||
12 | (5) the maximum surface treating pressure used;
| ||||||
13 | (6) the formation targeted;
| ||||||
14 | (7) the number of hydraulic fracturing stages; and
| ||||||
15 | (8) total perforated interval and individual | ||||||
16 | perforation intervals.
| ||||||
17 | Section 1-99. Task Force on Hydraulic Fracturing | ||||||
18 | Regulation.
| ||||||
19 | (a) There is hereby created the Task Force on Hydraulic | ||||||
20 | Fracturing Regulation.
| ||||||
21 | (b) The task force shall consist of the following members | ||||||
22 | as follows: | ||||||
23 | (1) Four legislators, appointed one each by the | ||||||
24 | President of the Senate, the Minority Leader of the Senate, | ||||||
25 | the Speaker of the House of Representatives, and the |
| |||||||
| |||||||
1 | Minority Leader of the House of Representatives;
| ||||||
2 | (2) The Governor, or his or her representative;
| ||||||
3 | (3) The Director of the Illinois Environmental | ||||||
4 | Protection Agency, or his or her representative;
| ||||||
5 | (4) The Director of the Illinois Department of Natural | ||||||
6 | Resources, or his or her representative;
| ||||||
7 | (5) The Attorney General of the State of Illinois, or | ||||||
8 | his or her representative;
| ||||||
9 | (6) The Director of the Illinois State Geological | ||||||
10 | Survey, or his or her representative;
| ||||||
11 | (7) Four representatives from environmental | ||||||
12 | organizations, at least one of whom shall be a national | ||||||
13 | environmental organization, at least one of whom shall be a | ||||||
14 | Midwest regional environmental organization, and at least | ||||||
15 | one of whom shall be an Illinois-based environmental | ||||||
16 | organization, appointed by the Director of the Illinois | ||||||
17 | Department of Natural Resources; and
| ||||||
18 | (8) Four representatives from entities representing | ||||||
19 | the interests of the oil and gas industry, at least one of | ||||||
20 | whom shall represent companies whose activities are | ||||||
21 | national in scope, at least one of whom shall represent | ||||||
22 | companies whose activities are primarily limited to this | ||||||
23 | State, at least one of whom shall represent an industry | ||||||
24 | trade association, and at least one of whom shall represent | ||||||
25 | a statewide labor federation representing more than one | ||||||
26 | international union, appointed by the Director of the |
| |||||||
| |||||||
1 | Illinois Department of Natural Resources. | ||||||
2 | (c) The Director of the Illinois Department of Natural | ||||||
3 | Resources shall serve as chairperson of the task force, and the | ||||||
4 | Department shall be responsible for administering its | ||||||
5 | operations and ensuring that the requirements of this Section | ||||||
6 | are met.
| ||||||
7 | (d) The task force may consult with any persons or entities | ||||||
8 | it deems necessary to carry out its mandate.
| ||||||
9 | (e) Members of the task force shall be appointed no later | ||||||
10 | than 90 days after the effective date of this amendatory Act of | ||||||
11 | the 98th General Assembly. The members of the task force shall | ||||||
12 | receive no compensation for serving as members of the task | ||||||
13 | force.
| ||||||
14 | (f) The task force shall (1) prepare a report evaluating | ||||||
15 | the scope of hydraulic fracturing activity in the State and (2) | ||||||
16 | provide recommendations to the General Assembly as to whether | ||||||
17 | further legislation is needed to regulate hydraulic fracturing | ||||||
18 | in this State. In performing these tasks, the task force shall | ||||||
19 | consider, at a minimum, the data collected by the Department | ||||||
20 | under Section 1-98 of this Act and the Illinois Oil and Gas | ||||||
21 | Act.
| ||||||
22 | (g) The task force shall submit its report and | ||||||
23 | recommendations specified in subsection (f) of this Section to | ||||||
24 | the General Assembly on or before September 15, 2016.
| ||||||
25 | (h) The task force, upon issuance of its report and | ||||||
26 | recommendations, is dissolved and this Section is repealed.
|
| |||||||
| |||||||
1 | Section 1-100. Criminal offenses; penalties. | ||||||
2 | (a) Except as otherwise provided in this Section, it shall | ||||||
3 | be a Class A misdemeanor to knowingly violate this Act, its | ||||||
4 | rules, or any permit or term or condition thereof, or knowingly | ||||||
5 | to submit any false information under this Act or regulations | ||||||
6 | adopted thereunder, or under any permit or term or condition | ||||||
7 | thereof. A person convicted or sentenced under this subsection | ||||||
8 | (a) shall be subject to a fine of not to exceed $10,000 for | ||||||
9 | each day of violation. | ||||||
10 | (b) It is unlawful for a person knowingly to violate: | ||||||
11 | (1) subsection (c) of Section 1-25 of this Act; | ||||||
12 | (2) subsection (d) of Section 1-25 of this Act; | ||||||
13 | (3) subsection (a) of Section 1-30 of this Act; | ||||||
14 | (4) paragraph (9) of subsection (c) of Section 1-75 of | ||||||
15 | this Act; or | ||||||
16 | (5) subsection (a) of Section 1-87 of this Act. | ||||||
17 | A person convicted or sentenced for any knowing violation | ||||||
18 | of the requirements or prohibitions listed in this subsection | ||||||
19 | (b) commits a Class 4 felony, and in addition to any other | ||||||
20 | penalty prescribed by law is subject to a fine not to exceed | ||||||
21 | $25,000 for each day of violation. A person who commits a | ||||||
22 | second or subsequent knowing violation of the requirements or | ||||||
23 | prohibitions listed in this subsection (b) commits a Class 3 | ||||||
24 | felony and, in addition to any other penalties provided by law, | ||||||
25 | is subject to a fine not to exceed $50,000 for each day of |
| |||||||
| |||||||
1 | violation. | ||||||
2 | (c) Any person who knowingly makes a false, fictitious, or | ||||||
3 | fraudulent material statement, orally or in writing, to the | ||||||
4 | Department or Agency as required by this Act, its rules, or any | ||||||
5 | permit, term, or condition of a permit, commits a Class 4 | ||||||
6 | felony, and each false, fictitious, or fraudulent statement or | ||||||
7 | writing shall be considered a separate violation. In addition | ||||||
8 | to any other penalty prescribed by law, persons in violation of | ||||||
9 | this subsection (c) is subject to a fine of not to exceed | ||||||
10 | $25,000 for each day of violation. A person who commits a | ||||||
11 | second or subsequent knowing violation of this subsection (c) | ||||||
12 | commits a Class 3 felony and, in addition to any other | ||||||
13 | penalties provided by law, is subject to a fine not to exceed | ||||||
14 | $50,000 for each day of violation. | ||||||
15 | (d) Any criminal action provided for under this Section | ||||||
16 | shall be brought by the State's Attorney of the county in which | ||||||
17 | the violation occurred or by the Attorney General and shall be | ||||||
18 | conducted in accordance with the applicable provision of the | ||||||
19 | Code of Criminal Procedure of 1963. For criminal conduct in | ||||||
20 | this Section, the period for commencing prosecution shall not | ||||||
21 | begin to run until the offense is discovered by or reported to | ||||||
22 | a State or local agency having authority to investigate | ||||||
23 | violations of this Act.
| ||||||
24 | Section 1-101. Violations; civil penalties and | ||||||
25 | injunctions.
|
| |||||||
| |||||||
1 | (a) Except as otherwise provided in this Section, any | ||||||
2 | person who violates any provision of this Act or any rule or | ||||||
3 | order adopted under this Act or any permit issued under this | ||||||
4 | Act shall be liable for a civil penalty not to exceed $50,000 | ||||||
5 | for the violation and an additional civil penalty not to exceed | ||||||
6 | $10,000 for each day during which the violation continues. | ||||||
7 | (b) Any person who violates any requirements or | ||||||
8 | prohibitions of provisions listed in this subsection (b) is | ||||||
9 | subject to a civil penalty not to exceed $100,000 for the | ||||||
10 | violation and an additional civil penalty not to exceed $20,000 | ||||||
11 | for each day during which the violation continues. The | ||||||
12 | following are violations are subject to the penalties of this | ||||||
13 | subsection (b): | ||||||
14 | (1) subsection (c) of Section 1-25 of this Act; | ||||||
15 | (2) subsection (d) of Section 1-25 of this Act; | ||||||
16 | (3) subsection (a) of Section 1-30 of this Act;
| ||||||
17 | (4) paragraph (9) of subsection (c) of Section 1-75 of | ||||||
18 | this Act; or | ||||||
19 | (5) subsection (a) of Section 1-87 of this Act. | ||||||
20 | (c) Any person who knowingly makes, submits, causes to be | ||||||
21 | made, or causes to be submitted a false report of pollution, | ||||||
22 | diminution, or water pollution attributable to high volume | ||||||
23 | horizontal hydraulic fracturing operations that results in an | ||||||
24 | investigation by the Department or Agency under this Act shall | ||||||
25 | be liable for a civil penalty not to exceed $1,000 for the | ||||||
26 | violation. |
| |||||||
| |||||||
1 | (d) The penalty shall be recovered by a civil action before | ||||||
2 | the circuit court of the county in which the well site is | ||||||
3 | located or in the circuit court of Sangamon County. Venue shall | ||||||
4 | be considered proper in either court. These penalties may, upon | ||||||
5 | the order of a court of competent jurisdiction, be made payable | ||||||
6 | to the Environmental Protection Trust Fund, to be used in | ||||||
7 | accordance with the provisions of the Environmental Protection | ||||||
8 | Trust Fund Act.
| ||||||
9 | (e) The State's Attorney of the county in which the | ||||||
10 | violation occurred, or the Attorney General, may, at the | ||||||
11 | request of the Department or on his or her own motion, | ||||||
12 | institute a civil action for the recovery of costs, an | ||||||
13 | injunction, prohibitory or mandatory, to restrain violations | ||||||
14 | of this Act, any rule adopted under this Act, the permit or | ||||||
15 | term or condition of the permit, or to require other actions as | ||||||
16 | may be necessary to address violations of this Act, any rule | ||||||
17 | adopted under this Act, the permit or term or condition of the | ||||||
18 | permit. | ||||||
19 | (f) The State's Attorney of the county in which the | ||||||
20 | violation occurred, or the Attorney General, shall bring | ||||||
21 | actions under this Section in the name of the People of the | ||||||
22 | State of Illinois. Without limiting any other authority that | ||||||
23 | may exist for the awarding of attorney's fees and costs, a | ||||||
24 | court of competent jurisdiction may award costs and reasonable | ||||||
25 | attorney's fees, including the reasonable costs of expert | ||||||
26 | witnesses and consultants, to the State's Attorney or the |
| |||||||
| |||||||
1 | Attorney General in a case where he or she has prevailed | ||||||
2 | against a person who has committed a knowing or repeated | ||||||
3 | violation of this Act, any rule adopted under this Act, or the | ||||||
4 | permit or term or condition of the permit. | ||||||
5 | (g) All final orders imposing civil penalties under this | ||||||
6 | Section shall prescribe the time for payment of those | ||||||
7 | penalties. If any penalty is not paid within the time | ||||||
8 | prescribed, interest on penalty at the rate set forth in | ||||||
9 | subsection (a) of Section 1003 of the Illinois Income Tax Act, | ||||||
10 | shall be paid for the period from the date payment is due until | ||||||
11 | the date payment is received. However, if the time for payment | ||||||
12 | is stayed during the pendency of an appeal, interest shall not | ||||||
13 | accrue during stay.
| ||||||
14 | Section 1-102. Other relief.
| ||||||
15 | (a) Any person having an interest that is or may be | ||||||
16 | adversely affected may commence a civil action on his or her | ||||||
17 | own behalf to compel compliance with this Act against any | ||||||
18 | governmental instrumentality or agency which is alleged to be | ||||||
19 | in violation of the provisions of this Act or of any rule, | ||||||
20 | order, or permit issued under this Act, or against any other | ||||||
21 | person who is alleged to be in violation of this Act or of any | ||||||
22 | rule, order, or permit issued under this Act. No action may be | ||||||
23 | commenced under this subsection (a): (i) prior to 60 days after | ||||||
24 | the plaintiff has given notice in writing of the alleged | ||||||
25 | violation to the Department and to any alleged violator or (ii) |
| |||||||
| |||||||
1 | if the State has commenced and is diligently prosecuting a | ||||||
2 | civil action to require compliance with the provisions of this | ||||||
3 | Act, or any rule, order, or permit issued under this Act. | ||||||
4 | (b) Any person having an interest that is or may be | ||||||
5 | adversely affected may commence a civil action against the | ||||||
6 | Department on his or her own behalf to compel compliance with | ||||||
7 | this Act where there is alleged a failure of the Department to | ||||||
8 | perform any act or duty under this Act that is not | ||||||
9 | discretionary with the Department. No action may be commenced | ||||||
10 | under this subsection (b) prior to 60 days after the plaintiff | ||||||
11 | has given notice in writing of the action to the Department, | ||||||
12 | except that action may be brought immediately after the | ||||||
13 | notification in the case where the violation or order | ||||||
14 | complained of constitutes an imminent threat to the health or | ||||||
15 | safety of the plaintiff or would immediately affect a legal | ||||||
16 | interest of the plaintiff. | ||||||
17 | (c) The court, in issuing any final order in any action | ||||||
18 | brought under this Section, may award costs of litigation | ||||||
19 | (including attorney and expert witness fees) to any party, on | ||||||
20 | the basis of the importance of the proceeding and the | ||||||
21 | participation of the parties to the efficient and effective | ||||||
22 | enforcement of this Act. The court may, if a temporary | ||||||
23 | restraining order or preliminary injunction is sought, require | ||||||
24 | the filing of a bond or equivalent security in accordance with | ||||||
25 | Part 1 of Article XI of the Code of Civil Procedure. | ||||||
26 | (d) Any person who is injured in his or her person or |
| |||||||
| |||||||
1 | property through the violation by any operator of any rule, | ||||||
2 | order, or permit issued under this Act may bring an action for | ||||||
3 | damages (including reasonable attorney and expert witness | ||||||
4 | fees). Nothing in this subsection (d) shall affect any of the | ||||||
5 | rights established by or limits imposed under the Workers' | ||||||
6 | Compensation Act. | ||||||
7 | (e) Any action brought under this Section may be brought | ||||||
8 | only in the county in which the high volume horizontal | ||||||
9 | hydraulic fracturing operation complained of is located.
| ||||||
10 | (f) In any action under this Section, the Department shall | ||||||
11 | have an unconditional right to intervene. | ||||||
12 | (g) No existing civil or criminal remedy for any wrongful | ||||||
13 | action shall be excluded or impaired by this Act. | ||||||
14 | (h) Nothing in this Section shall restrict any right that | ||||||
15 | any person (or class of persons) may have under any statute or | ||||||
16 | common law to seek enforcement of any of the provisions of this | ||||||
17 | Act and the rules adopted under this Act, or to seek any other | ||||||
18 | relief (and including relief against the United States or the | ||||||
19 | Department).
| ||||||
20 | Section 1-105. Violations, complaints, and notice; | ||||||
21 | website. | ||||||
22 | The Department shall maintain a detailed database that is | ||||||
23 | readily accessible to the public on the Department's website. | ||||||
24 | The database shall show each violation found by the Department | ||||||
25 | regarding high volume horizontal hydraulic fracturing |
| |||||||
| |||||||
1 | operations and the associated well owners, operators, and | ||||||
2 | subcontractors. When the Department determines that any person | ||||||
3 | has violated this Act, the Department shall provide notice by | ||||||
4 | U.S. Postal Service certified mail, return receipt requested, | ||||||
5 | of the Department's determination to all persons required to | ||||||
6 | receive specific public notice under Section 1-40 of this Act | ||||||
7 | within 7 calendar days after the determination. The Department | ||||||
8 | shall also post the notice on the Department's website. The | ||||||
9 | notice shall include a detailed, plain language description of | ||||||
10 | the violation and a detailed, plain language description of all | ||||||
11 | known risks to public health, life, property, aquatic life, and | ||||||
12 | wildlife resulting from the violation.
| ||||||
13 | Section 1-110. Public information; website. | ||||||
14 | (a) All information submitted to the Department under this | ||||||
15 | Act is deemed public information, except information deemed to | ||||||
16 | constitute a trade secret under Section 1-77 of this Act and | ||||||
17 | private information and personal information as defined in the | ||||||
18 | Freedom of Information Act. | ||||||
19 | (b) To provide the public and concerned citizens with a | ||||||
20 | centralized repository of information, the Department shall | ||||||
21 | create and maintain a comprehensive website dedicated to | ||||||
22 | providing information concerning high volume horizontal | ||||||
23 | hydraulic fracturing operations. The website shall contain, | ||||||
24 | assemble, and link the documents and information required by | ||||||
25 | this Act to be posted on the Department's or other agencies' |
| |||||||
| |||||||
1 | websites. The Department shall also create and maintain an | ||||||
2 | online searchable database that provides information related | ||||||
3 | to high volume horizontal hydraulic fracturing operations on | ||||||
4 | wells that, at a minimum, include, for each well it permits, | ||||||
5 | the identity of its operators, its waste disposal, its chemical | ||||||
6 | disclosure information, and any complaints or violations under | ||||||
7 | this Act. The website created under this Section shall allow | ||||||
8 | users to search for completion reports by well name and | ||||||
9 | location, dates of fracturing and drilling operations, | ||||||
10 | operator, and by chemical additives.
| ||||||
11 | Section 1-120. Applicable federal, State, and local laws. | ||||||
12 | Compliance with this Act does not relieve responsibility for | ||||||
13 | compliance with the Illinois Oil and Gas Act, the Illinois | ||||||
14 | Environmental Protection Act, and other applicable federal, | ||||||
15 | State, and local laws.
| ||||||
16 | Section 1-123. Application of water well laws. Nothing in | ||||||
17 | this Act shall be construed to affect the application of the | ||||||
18 | Illinois Water Well Construction Code, the Illinois Water Well | ||||||
19 | Pump Installation Code, the Water Well and Pump Installation | ||||||
20 | Contractor's License Act, or any rules adopted thereunder to | ||||||
21 | all water wells, closed loop wells, or monitoring wells, as | ||||||
22 | those terms are defined in Section 3 of the Illinois Water Well | ||||||
23 | Construction Code, that are located, drilled, constructed, or | ||||||
24 | modified in connection with activities regulated by this Act.
|
| |||||||
| |||||||
1 | Section 1-125. Administrative review. All final | ||||||
2 | administrative decisions, including issuance or denial of a | ||||||
3 | permit, made by the Department under this Act are subject to | ||||||
4 | judicial review under the Administrative Review Law and its | ||||||
5 | rules.
| ||||||
6 | Section 1-130. Rules. The Department shall have the | ||||||
7 | authority to adopt rules as may be necessary to accomplish the | ||||||
8 | purposes of this Act. Any and all rules adopted under this Act | ||||||
9 | by the Department are not subject to the review, consultation, | ||||||
10 | or advisement of the Oil and Gas Board.
| ||||||
11 | Section 1-135. The Mines and Minerals Regulatory Fund. The | ||||||
12 | Mines and Minerals Regulatory Fund is created as a special fund | ||||||
13 | in the State treasury. All moneys required by this Act to be | ||||||
14 | deposited into the Fund shall be used by the Department to | ||||||
15 | administer and enforce this Act and otherwise support the | ||||||
16 | operations and programs of the Office of Mines and Minerals.
| ||||||
17 | Section 1-140. Severability. The provisions of this Act are | ||||||
18 | severable under Section 1.31 of the Statute on Statutes.
| ||||||
19 | ARTICLE 2. | ||||||
20 | Section 2-5. Short title. This Act may be cited as the |
| |||||||
| |||||||
1 | "Illinois Hydraulic Fracturing Tax Act".
| ||||||
2 | Section 2-10. Definitions. For the purposes of this Act, | ||||||
3 | unless the context otherwise requires: | ||||||
4 | "Barrel" for oil measurement means a barrel of 42 U.S. | ||||||
5 | gallons of 231 cubic inches per gallon, computed at a | ||||||
6 | temperature of 60 degrees Fahrenheit.
| ||||||
7 | "Construction" means any constructing, altering, | ||||||
8 | reconstructing, repairing, rehabilitating, refinishing, | ||||||
9 | refurbishing, remodeling, remediating, renovating, custom | ||||||
10 | fabricating, maintaining, landscaping, improving, drilling, | ||||||
11 | testing, moving, wrecking, painting, decorating, demolishing, | ||||||
12 | and adding to or subtracting from any building, structure, | ||||||
13 | highway, roadway, street, bridge, alley, sewer, ditch, water | ||||||
14 | works, parking facility, railroad, excavation or other | ||||||
15 | structure, project, development, real property or improvement, | ||||||
16 | or to do any part thereof, whether or not the performance of | ||||||
17 | the construction involves the addition to, or fabrication into, | ||||||
18 | any structure, project, development, real property or | ||||||
19 | improvement herein described performed or done on behalf of an | ||||||
20 | operator in connection with and at the location of a well site | ||||||
21 | subject to the tax imposed by this Act.
| ||||||
22 | "Construction worker" means a person performing | ||||||
23 | construction.
| ||||||
24 | "Department" means the Illinois Department of Revenue. | ||||||
25 | "Fracturing" or "hydraulic fracturing" means the |
| |||||||
| |||||||
1 | propagation of fractures in a rock layer, by a pressurized | ||||||
2 | fluid used to release petroleum or natural gas (including shale | ||||||
3 | gas, tight gas, and coal seam gas), for extraction. | ||||||
4 | "Gas" means natural gas taken from below the surface of the | ||||||
5 | earth or water in this State, regardless of whether the gas is | ||||||
6 | taken from a gas well or from a well also productive of oil or | ||||||
7 | any other product. | ||||||
8 | "General prevailing rate of hourly wages" has the meaning | ||||||
9 | ascribed to it in Section 2 of the Prevailing Wage Act, as | ||||||
10 | determined by the Director of the Department of Labor under | ||||||
11 | Section 9 of the Prevailing Wage Act for the county in which | ||||||
12 | the construction occurs.
| ||||||
13 | "Illinois construction worker" means a construction | ||||||
14 | worker, as defined in this Section, domiciled in Illinois for | ||||||
15 | 24 months prior to the date of the issuance of a high volume | ||||||
16 | horizontal hydraulic fracturing permit for the well site on | ||||||
17 | which the construction is performed.
| ||||||
18 | "Lease number" means the number assigned by the purchaser | ||||||
19 | to identify each production unit. | ||||||
20 | "Oil" means petroleum or other crude oil, condensate, | ||||||
21 | casinghead gasoline, or other mineral oil that is severed or | ||||||
22 | withdrawn from below the surface of the soil or water in this | ||||||
23 | State. | ||||||
24 | "Operator" means the person primarily responsible for the | ||||||
25 | management and operation of oil or gas productions from a | ||||||
26 | production unit. |
| |||||||
| |||||||
1 | "Person" means any natural individual, firm, partnership, | ||||||
2 | association, joint stock company, joint adventure, public or | ||||||
3 | private corporation, limited liability company, or a receiver, | ||||||
4 | executor, trustee, guardian, or other representative appointed | ||||||
5 | by order of any court. | ||||||
6 | "Producer" means any person owning, controlling, managing, | ||||||
7 | or leasing any oil or gas property or oil or gas well, and any | ||||||
8 | person who severs in any manner any oil or gas in this State, | ||||||
9 | and shall include any person owning any direct and beneficial | ||||||
10 | interest in any oil or gas produced, whether severed by such | ||||||
11 | person or some other person on their behalf, either by lease, | ||||||
12 | contract, or otherwise, including working interest owners, | ||||||
13 | overriding royalty owners, or royalty owners. | ||||||
14 | "Production unit" means a unit of property designated by | ||||||
15 | the Department of Natural Resources from which oil or gas is | ||||||
16 | severed.
| ||||||
17 | "Purchaser" means a person who is the first purchaser of a | ||||||
18 | product after severance from a production unit. | ||||||
19 | "Remove" or "removal" means the physical transportation of | ||||||
20 | oil or gas off of the production unit where severed; and if the | ||||||
21 | oil or gas is used on the premises where severed, or if the | ||||||
22 | manufacture or conversion of oil or gas into refined products | ||||||
23 | occurs on the premises where severed, oil or gas shall be | ||||||
24 | deemed to have been removed on the date such use, manufacture, | ||||||
25 | or conversion begins. | ||||||
26 | "Severed" or "severing" means: (1) the production of oil |
| |||||||
| |||||||
1 | through extraction or withdrawal of the same, whether such | ||||||
2 | extraction or withdrawal is by natural flow, mechanical flow, | ||||||
3 | forced flow, pumping, or any other means employed to get the | ||||||
4 | oil from below the surface of the soil or water and shall | ||||||
5 | include the withdrawal by any means whatsoever of oil upon | ||||||
6 | which the tax has not been paid, from any surface reservoir, | ||||||
7 | natural or artificial, or from a water surface; and (2) the | ||||||
8 | production of gas through the extraction or withdrawal of the | ||||||
9 | same by any means whatsoever, from below the surface of the | ||||||
10 | earth or water. | ||||||
11 | "Severance" means the taking of oil or gas from below the | ||||||
12 | surface of the soil or water in any manner whatsoever. | ||||||
13 | "Total workforce hours" means all hours worked by | ||||||
14 | construction workers on a well site, beginning on the date an | ||||||
15 | application for a permit to perform high volume horizontal | ||||||
16 | hydraulic fracturing operations at the well is filed under | ||||||
17 | Section 1-35 of the Hydraulic Fracturing Regulatory Act and | ||||||
18 | ending on the date of first production following initial | ||||||
19 | drilling or any reworking of the well. | ||||||
20 | "Value" means the sale price of oil or gas at the time of | ||||||
21 | removal of the oil or gas from the production unit and if oil | ||||||
22 | or gas is exchanged for something other than cash, or if no | ||||||
23 | sale occurs at the time of removal, or if the Department | ||||||
24 | determines that the relationship between the buyer and the | ||||||
25 | seller is such that the consideration paid, if any, is not | ||||||
26 | indicative of the true value or market price, then the |
| |||||||
| |||||||
1 | Department shall determine the value of the oil or gas subject | ||||||
2 | to tax based on the cash price paid to one or more producers | ||||||
3 | for the oil or gas or based on the cash price paid to producers | ||||||
4 | for like quality oil or gas in the vicinity of the production | ||||||
5 | unit at the time of the removal of the oil or gas from the | ||||||
6 | production unit.
| ||||||
7 | "Well site" has the meaning ascribed to the term in Section | ||||||
8 | 1-5 of the Hydraulic Fracturing Regulatory Act.
| ||||||
9 | "Working interest" means any interest in or any right to | ||||||
10 | the production of oil and gas, excluding royalty or overriding | ||||||
11 | royalty interests.
| ||||||
12 | Section 2-15. Tax imposed. | ||||||
13 | (a) For oil and gas removed on or after July 1, 2013, there | ||||||
14 | is hereby imposed a tax upon the severance and production of | ||||||
15 | oil or gas from a well on a production unit in this State | ||||||
16 | permitted, or required to be permitted, under the Illinois | ||||||
17 | Hydraulic Fracturing Regulatory Act, for sale, transport, | ||||||
18 | storage, profit, or commercial use. The tax shall be applied | ||||||
19 | equally to all portions of the value of each barrel of oil | ||||||
20 | severed and subject to such tax and to the value of the gas | ||||||
21 | severed and subject to such tax. For a period of 24 months from | ||||||
22 | the month in which oil or gas was first produced from the well, | ||||||
23 | the rate of tax shall be 3% of the value of the oil or gas | ||||||
24 | severed from the earth or water in this State. Thereafter, the | ||||||
25 | rate of the tax shall be as follows: |
| |||||||
| |||||||
1 | (1) For oil: | ||||||
2 | (A) where the average daily production from the | ||||||
3 | well during the month is less than 25 barrels, 3% of | ||||||
4 | the value of the oil severed from the earth or water; | ||||||
5 | (B) where the average daily production from the | ||||||
6 | well during the month is 25 or more barrels but less | ||||||
7 | than 50 barrels, 4% of the value of the oil severed | ||||||
8 | from the earth or water; | ||||||
9 | (C) where the average daily production from the | ||||||
10 | well during the month is 50 or more barrels but less | ||||||
11 | than 100 barrels, 5% of the value of the oil severed | ||||||
12 | from the earth or water; or | ||||||
13 | (D) where the average daily production from the | ||||||
14 | well during the month is 100 or more barrels, 6% of the | ||||||
15 | value of the oil severed from the earth or water. | ||||||
16 | (2) For gas, 6% of the value of the gas severed from | ||||||
17 | the earth or water. | ||||||
18 | If a well is required to be permitted under the Illinois | ||||||
19 | Hydraulic Fracturing Regulatory Act, the tax imposed by this | ||||||
20 | Section applies, whether or not a permit was obtained. | ||||||
21 | (b) Oil produced from a well whose average daily production | ||||||
22 | is 15 barrels or less for the 12-month period immediately | ||||||
23 | preceding the production is exempt from the tax imposed by this | ||||||
24 | Act.
| ||||||
25 | (c) For the purposes of the tax imposed by this Act the | ||||||
26 | amount of oil produced shall be measured or determined, in the |
| |||||||
| |||||||
1 | case of oil, by tank tables, without deduction for overage or | ||||||
2 | losses in handling. Allowance for any reasonable and bona fide | ||||||
3 | deduction for basic sediment and water, and for correction of | ||||||
4 | temperature to 60 degrees Fahrenheit will be allowed. For the | ||||||
5 | purposes of the tax imposed by this Act the amount of gas | ||||||
6 | produced shall be measured or determined, by meter readings | ||||||
7 | showing 100% of the full volume expressed in cubic feet at a | ||||||
8 | standard base and flowing temperature of 60 degrees Fahrenheit, | ||||||
9 | and at the absolute pressure at which the gas is sold and | ||||||
10 | purchased. Correction shall be made for pressure according to | ||||||
11 | Boyle's law, and used for specific gravity according to the | ||||||
12 | gravity at which the gas is sold and purchased. | ||||||
13 | (d) The following severance and production of gas shall be | ||||||
14 | exempt from the tax imposed by this Act: gas injected into the | ||||||
15 | earth for the purpose of lifting oil, recycling, or | ||||||
16 | repressuring; gas used for fuel in connection with the | ||||||
17 | operation and development for, or production of, oil or gas in | ||||||
18 | the production unit where severed; and gas lawfully vented or | ||||||
19 | flared; gas inadvertently lost on the production unit by reason | ||||||
20 | of leaks, blowouts, or other accidental losses. | ||||||
21 | (e) All oil and gas removed from the premises where severed | ||||||
22 | is subject to the tax imposed by this Act unless exempt under | ||||||
23 | the terms of this Act.
| ||||||
24 | (f) The liability for the tax accrues at the time the oil | ||||||
25 | or gas is removed from the production unit.
|
| |||||||
| |||||||
1 | Section 2-17. Local Workforce Tax Rate Reduction. | ||||||
2 | (a) The rate of tax imposed on working interest owners of a | ||||||
3 | well under Section 2-15 of this Act shall be reduced by 0.25% | ||||||
4 | for the life of the well when a minimum of 50% of the total | ||||||
5 | workforce hours on the well site are performed by Illinois | ||||||
6 | construction workers being paid wages equal to or exceeding the | ||||||
7 | general prevailing rate of hourly wages.
| ||||||
8 | (b) When more than one well is drilled on a well site, | ||||||
9 | total workforce hours shall be determined on a well-by-well | ||||||
10 | basis.
| ||||||
11 | (c) Any operator that intends to claim the reduction | ||||||
12 | provided for in this Section on his or her behalf, or on the | ||||||
13 | behalf of the working interest owners, shall be responsible for | ||||||
14 | obtaining from all construction contractors working on a well | ||||||
15 | site, records to document the claim for the reduction in tax | ||||||
16 | rate. Operators shall, at a minimum, obtain from construction | ||||||
17 | contractors, in writing, the total number of construction | ||||||
18 | workers that performed work under the contract, the number of | ||||||
19 | Illinois construction workers that performed work under the | ||||||
20 | contract, whether oral or written, between the operator and the | ||||||
21 | construction contractor, the hours worked by each construction | ||||||
22 | worker and the wage paid to each construction worker for the | ||||||
23 | hours of work performed on the well site. The operator shall | ||||||
24 | obtain and retain any other records the Department determines | ||||||
25 | are necessary to verify a claim for a reduction in the tax. The | ||||||
26 | operator shall make the records available to the Department |
| |||||||
| |||||||
1 | upon request.
| ||||||
2 | For the purposes of this Section, each construction | ||||||
3 | contractor, upon written request from the operator, shall | ||||||
4 | retain the following records: each worker's name, address, and | ||||||
5 | telephone number, if available, years of residency in Illinois, | ||||||
6 | the type of work the worker performs, the hourly wages paid | ||||||
7 | each worker, and the number of hours worked by each worker for | ||||||
8 | the term of the contract. The construction contractor shall | ||||||
9 | retain any other records the Department determines are | ||||||
10 | necessary to verify a claim for a reduction in the tax. The | ||||||
11 | construction contractor shall make the records available to the | ||||||
12 | operator and Department upon request. The operator and | ||||||
13 | construction contractors shall retain the records for 3 years.
| ||||||
14 | No later than the 6 months after the date of the first | ||||||
15 | purchase of oil or gas from a well, the operator shall file | ||||||
16 | with the Department, in the form and manner required by the | ||||||
17 | Department, a report and documentation to support that the | ||||||
18 | working interest owners qualify for the reduction in the rate | ||||||
19 | of tax provided for in this Section. The report shall be signed | ||||||
20 | by the operator, or an officer, employee, or agent of the | ||||||
21 | contractor, and state under oath that he or she has examined | ||||||
22 | the report and documentation and the report and documentation | ||||||
23 | are true and accurate. The Department shall keep the records | ||||||
24 | submitted in accordance with this subsection for a period of | ||||||
25 | not less than 3 years from the date of filing.
| ||||||
26 | (d) The Department shall notify the first purchaser and the |
| |||||||
| |||||||
1 | operator when the working interest owners qualify for a | ||||||
2 | reduction in the tax under this Section and state the amount of | ||||||
3 | the reduction. The reduction shall be effective the date of | ||||||
4 | first production. The first purchaser or operator may take a | ||||||
5 | credit for any retroactive reduction in the tax rate on a | ||||||
6 | return filed under Sections 2-45 and 2-50 of this Act.
| ||||||
7 | (e) Reports shall be filed on forms furnished and | ||||||
8 | prescribed by the Department and shall contain any other | ||||||
9 | information as the Department may reasonably require.
| ||||||
10 | Section 2-20. Taxable value; method of determining. The | ||||||
11 | Department may determine the value of products severed from a | ||||||
12 | production unit when the operator and purchaser are affiliated | ||||||
13 | persons, when the sale and purchase of products is not an arm's | ||||||
14 | length transaction, or when products are severed and removed | ||||||
15 | from a production unit and a value is not established for those | ||||||
16 | products. The value determined by the Department shall be | ||||||
17 | commensurate with the actual price received for products of | ||||||
18 | like quality, character, and use which are severed in the same | ||||||
19 | field or area. If there are no sales of products of like | ||||||
20 | quality, character, and use severed in the same field or area, | ||||||
21 | then the Department shall establish a reasonable value based on | ||||||
22 | sales of products of like quality, character, and use which are | ||||||
23 | severed in other areas of the State, taking into consideration | ||||||
24 | any other relevant factors.
|
| |||||||
| |||||||
1 | Section 2-25. Withholding of tax. Any purchaser who makes | ||||||
2 | a monetary payment to a producer for his or her portion of the | ||||||
3 | value of products from a production unit shall withhold from | ||||||
4 | such payment the amount of tax due from the producer. Any | ||||||
5 | purchaser who pays any tax due from a producer shall be | ||||||
6 | entitled to reimbursement from the producer for the tax so paid | ||||||
7 | and may take credit for such amount from any monetary payment | ||||||
8 | to the producer for the value of products. To the extent that a | ||||||
9 | purchaser required to collect the tax imposed by this Act has | ||||||
10 | actually collected that tax, such tax is held in trust for the | ||||||
11 | benefit of the State of Illinois.
| ||||||
12 | Section 2-30. Payment and collection of tax. | ||||||
13 | (a) For oil and gas removed on or after July 1, 2013, the | ||||||
14 | tax incurred under this Act shall be due and payable on or | ||||||
15 | before the last day of the month following the end of the month | ||||||
16 | in which the oil or gas is removed from the production unit. | ||||||
17 | The tax is upon the producers of such oil or gas in the | ||||||
18 | proportion to their respective beneficial interests at the time | ||||||
19 | of severance. The first purchaser of any oil or gas sold shall | ||||||
20 | collect the amount of the tax due from the producers by | ||||||
21 | deducting and withholding such amount from any payments made by | ||||||
22 | such purchaser to the producers and shall remit the tax in this | ||||||
23 | Act. | ||||||
24 | In the event the tax shall be withheld by a purchaser from | ||||||
25 | payments due a producer and such purchaser fails to make |
| |||||||
| |||||||
1 | payment of the tax to the State as required herein, the first | ||||||
2 | purchaser shall be liable for the tax. However, in the event a | ||||||
3 | first purchaser fails to pay the tax withheld from a producer's | ||||||
4 | payment, the producer's interest remains subject to any lien | ||||||
5 | filed pursuant to subsection (c) of this Section. A producer | ||||||
6 | shall be entitled to bring an action against such purchaser to | ||||||
7 | recover the amount of tax so withheld together with penalties | ||||||
8 | and interest which may have accrued by failure to make such | ||||||
9 | payment. A producer shall be entitled to all attorney fees and | ||||||
10 | court costs incurred in such action. To the extent that a | ||||||
11 | producer liable for the tax imposed by this Act collects the | ||||||
12 | tax, and any penalties and interest, from a purchaser, such | ||||||
13 | tax, penalties, and interest are held in trust by the producer | ||||||
14 | for the benefit of the State of Illinois. | ||||||
15 | (b) For all production units a first purchaser begins to | ||||||
16 | purchase oil or gas from on or after July 1, 2013, the first | ||||||
17 | purchaser is required to withhold and remit the tax imposed by | ||||||
18 | this Act to the Department from the oil and gas purchased from | ||||||
19 | the production unit unless the first purchaser obtains from the | ||||||
20 | operator an exemption certificate signed by the operator | ||||||
21 | stating that the production unit is not subject to the tax | ||||||
22 | imposed by this Act. The exemption certificate must include the | ||||||
23 | following information: | ||||||
24 | (1) name and address of the operator; | ||||||
25 | (2) name of the production unit; | ||||||
26 | (3) number assigned to the production unit by the first |
| |||||||
| |||||||
1 | purchaser, if available; | ||||||
2 | (4) legal description of the production unit; and | ||||||
3 | (5) a statement by the operator that the production | ||||||
4 | unit is exempt from the tax imposed by the Illinois | ||||||
5 | Hydraulic Fracturing Tax Act. | ||||||
6 | If a first purchaser obtains an exemption certificate that | ||||||
7 | contains the required information and reasonably relies on the | ||||||
8 | exemption certificate and it is subsequently determined by the | ||||||
9 | Department that the production unit is subject to the tax | ||||||
10 | imposed by this Act, the Department will collect any tax that | ||||||
11 | is due from the operator and producers, and the first purchaser | ||||||
12 | is relieved of any liability. | ||||||
13 | (c) Notwithstanding subsection (a) of this Section, the tax | ||||||
14 | is a lien on the oil and gas from the time of severance from the | ||||||
15 | land or under the water until the tax and all penalties and | ||||||
16 | interest are fully paid, and the State shall have a lien on all | ||||||
17 | the oil or gas severed from the production unit in this State | ||||||
18 | in the hands of the operator, any producer or the first or any | ||||||
19 | subsequent purchaser thereof to secure the payment of the tax. | ||||||
20 | If a lien is filed by the Department, the purchaser shall | ||||||
21 | withhold from producers or operators the amount of tax, penalty | ||||||
22 | and interest identified in the lien.
| ||||||
23 | Section 2-35. Registration of purchasers. A person who | ||||||
24 | engages in business as a purchaser of oil or gas in this State | ||||||
25 | shall register with the Department. Application for a |
| |||||||
| |||||||
1 | certificate of registration shall be made to the Department | ||||||
2 | upon forms furnished by the Department and shall contain any | ||||||
3 | reasonable information the Department may require. Upon | ||||||
4 | receipt of the application for a certificate of registration in | ||||||
5 | proper form, the Department shall issue to the applicant a | ||||||
6 | certificate of registration.
| ||||||
7 | Section 2-40. Inspection of records by the Department; | ||||||
8 | subpoena power, contempt. The Department shall have the power | ||||||
9 | to require any operator, producer, transporter, or person | ||||||
10 | purchasing any oil or gas severed from the earth or water to | ||||||
11 | furnish any additional information deemed to be necessary for | ||||||
12 | the purpose of computing the amount of the tax, and for such | ||||||
13 | purpose to examine the meter and other charts, books, records, | ||||||
14 | and all files of such person, and for such purpose the | ||||||
15 | Department shall have the power to issue subpoenas and examine | ||||||
16 | witnesses under oath, and if any witness shall fail or refuse | ||||||
17 | to appear at the request of the director, or refuses access to | ||||||
18 | books, records, and files, the circuit court of the proper | ||||||
19 | county, or the judge thereof, on application of the Department, | ||||||
20 | shall compel obedience by proceedings for contempt, as in the | ||||||
21 | case of disobedience of the requirements of a subpoena issued | ||||||
22 | from such court or a refusal to testify therein.
| ||||||
23 | Section 2-45. Purchaser's return and tax remittance. Each | ||||||
24 | purchaser shall make a return to the Department showing the |
| |||||||
| |||||||
1 | quantity of oil or gas purchased during the month for which the | ||||||
2 | return is filed, the price paid therefore, total value, the | ||||||
3 | name and address of the operator or other person from whom the | ||||||
4 | same was purchased, a description of the production unit in the | ||||||
5 | manner prescribed by the Department from which such oil or gas | ||||||
6 | was severed and the amount of tax due from each production unit | ||||||
7 | for each calendar month. All taxes due, or to be remitted, by | ||||||
8 | the purchaser shall accompany this return. The return shall be | ||||||
9 | filed on or before the last day of the month after the calendar | ||||||
10 | month for which the return is required. The Department may | ||||||
11 | require any additional report or information it may deem | ||||||
12 | necessary for the proper administration of this Act. | ||||||
13 | Such returns shall be filed electronically in the manner | ||||||
14 | prescribed by the Department. Purchasers shall make all | ||||||
15 | payments of that tax to the Department by electronic funds | ||||||
16 | transfer unless, as provided by rule, the Department grants an | ||||||
17 | exception upon petition of a purchaser. Purchasers' returns | ||||||
18 | must be accompanied by appropriate computer generated magnetic | ||||||
19 | media supporting schedule data in the format required by the | ||||||
20 | Department, unless, as provided by rule, the Department grants | ||||||
21 | an exception upon petition of a purchaser.
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22 | Section 2-50. Operator returns; payment of tax. | ||||||
23 | (a) If, on or after July 1, 2013, oil or gas is transported | ||||||
24 | off the production unit where severed by the operator, used on | ||||||
25 | the production unit where severed, or if the manufacture and |
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1 | conversion of oil and gas into refined products occurs on the | ||||||
2 | production unit where severed, the operator is responsible for | ||||||
3 | remitting the tax imposed under subsections (a) of Section 15, | ||||||
4 | on or before the last day of the month following the end of the | ||||||
5 | calendar month in which the oil and gas is removed from the | ||||||
6 | production unit, and such payment shall be accompanied by a | ||||||
7 | return to the Department showing the gross quantity of oil or | ||||||
8 | gas removed during the month for which the return is filed, the | ||||||
9 | price paid therefore, and if no price is paid therefore, the | ||||||
10 | value of the oil and gas, a description of the production unit | ||||||
11 | from which such oil or gas was severed, and the amount of tax. | ||||||
12 | The Department may require any additional information it may | ||||||
13 | deem necessary for the proper administration of this Act. | ||||||
14 | (b) Operators shall file all returns electronically in the | ||||||
15 | manner prescribed by the Department unless, as provided by | ||||||
16 | rule, the Department grants an exception upon petition of an | ||||||
17 | operator. Operators shall make all payments of that tax to the | ||||||
18 | Department by electronic funds transfer unless, as provided by | ||||||
19 | rule, the Department grants an exception upon petition of an | ||||||
20 | operator. Operators' returns must be accompanied by | ||||||
21 | appropriate computer generated magnetic media supporting | ||||||
22 | schedule data in the format required by the Department, unless, | ||||||
23 | as provided by rule, the Department grants an exception upon | ||||||
24 | petition of a purchaser. | ||||||
25 | (c) Any operator who makes a monetary payment to a producer | ||||||
26 | for his or her portion of the value of products from a |
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1 | production unit shall withhold from such payment the amount of | ||||||
2 | tax due from the producer. Any operator who pays any tax due | ||||||
3 | from a producer shall be entitled to reimbursement from the | ||||||
4 | producer for the tax so paid and may take credit for such | ||||||
5 | amount from any monetary payment to the producer for the value | ||||||
6 | of products. To the extent that an operator required to collect | ||||||
7 | the tax imposed by this Act has actually collected that tax, | ||||||
8 | such tax is held in trust for the benefit of the State of | ||||||
9 | Illinois. | ||||||
10 | (d) In the event the operator fails to make payment of the | ||||||
11 | tax to the State as required herein, the operator shall be | ||||||
12 | liable for the tax. A producer shall be entitled to bring an | ||||||
13 | action against such operator to recover the amount of tax so | ||||||
14 | withheld together with penalties and interest which may have | ||||||
15 | accrued by failure to make such payment. A producer shall be | ||||||
16 | entitled to all attorney fees and court costs incurred in such | ||||||
17 | action. To the extent that a producer liable for the tax | ||||||
18 | imposed by this Act collects the tax, and any penalties and | ||||||
19 | interest, from an operator, such tax, penalties, and interest | ||||||
20 | are held in trust by the producer for the benefit of the State | ||||||
21 | of Illinois. | ||||||
22 | (e) When the title to any oil or gas severed from the earth | ||||||
23 | or water is in dispute and the operator of such oil or gas is | ||||||
24 | withholding payments on account of litigation, or for any other | ||||||
25 | reason, such operator is hereby authorized, empowered and | ||||||
26 | required to deduct from the gross amount thus held the amount |
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1 | of the tax imposed and to make remittance thereof to the | ||||||
2 | Department as provided in this Section. | ||||||
3 | (f) An operator required to file a return and pay the tax | ||||||
4 | under this Section shall register with the Department. | ||||||
5 | Application for a certificate of registration shall be made to | ||||||
6 | the Department upon forms furnished by the Department and shall | ||||||
7 | contain any reasonable information the Department may require. | ||||||
8 | Upon receipt of the application for a certificate of | ||||||
9 | registration in proper form, the Department shall issue to the | ||||||
10 | applicant a certificate of registration. | ||||||
11 | (g) If oil or gas is transported off the production unit | ||||||
12 | where severed by the operator and sold to a purchaser or | ||||||
13 | refiner, the State shall have a lien on all the oil or gas | ||||||
14 | severed from the production unit in this State in the hands of | ||||||
15 | the operator, the first or any subsequent purchaser thereof, or | ||||||
16 | refiner to secure the payment of the tax. If a lien is filed by | ||||||
17 | the Department, the purchaser or refiner shall withhold from | ||||||
18 | the operator the amount of tax, penalty and interest identified | ||||||
19 | in the lien.
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20 | Section 2-55. Tax withholding and remittance when title to | ||||||
21 | minerals disputed. When the title to any oil or gas severed | ||||||
22 | from the earth or water is in dispute and the purchaser of such | ||||||
23 | oil or gas is withholding payments on account of litigation, or | ||||||
24 | for any other reason, such purchaser is hereby authorized, | ||||||
25 | empowered and required to deduct from the gross amount thus |
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1 | held the amount of the tax imposed and to make remittance | ||||||
2 | thereof to the Department as provided in this Act.
| ||||||
3 | Section 2-60. Transporters. When requested by the | ||||||
4 | Department, all transporters of oil or gas out of, within or | ||||||
5 | across the State of Illinois shall be required to furnish the | ||||||
6 | Department such information relative to the transportation of | ||||||
7 | such oil or gas as the Department may require. The Department | ||||||
8 | shall have authority to inspect bills of lading, waybills, | ||||||
9 | meter, or other charts, documents, books and records as may | ||||||
10 | relate to the transportation of oil or gas in the hands of each | ||||||
11 | transporter. The Department shall further be empowered to | ||||||
12 | demand the production of such bills of lading, waybills, | ||||||
13 | charts, documents, books, and records relating to the | ||||||
14 | transportation of oil or gas at any point in the State of | ||||||
15 | Illinois.
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16 | Section 2-65. Rulemaking. The Department is hereby | ||||||
17 | authorized to adopt any rules as may be necessary to administer | ||||||
18 | and enforce the provisions of this Act.
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19 | Section 2-70. Incorporation by reference. All of the | ||||||
20 | provisions of Sections 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5j, 6, | ||||||
21 | 6a, 6b, 6c, 7, 8, 9, 10, 11, 11a, 12, and 13 of the "Retailers' | ||||||
22 | Occupation Tax Act" which are not inconsistent with this Act, | ||||||
23 | and all provisions of the Uniform Penalty and Interest Act |
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1 | shall apply, as far as practicable, to the subject matter of | ||||||
2 | this Act to the same extent as if such provisions were included | ||||||
3 | herein.
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4 | Section 2-75. Distribution of proceeds. All moneys | ||||||
5 | received by the Department under this Act shall be paid into | ||||||
6 | the General Revenue Fund in the State Treasury.
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7 | ARTICLE 3. | ||||||
8 | Section 3-150. The State Finance Act is amended by adding | ||||||
9 | Section 5.826 as follows:
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10 | (30 ILCS 105/5.826 new) | ||||||
11 | Sec. 5.826. The Mines and Minerals Regulatory Fund.
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12 | ARTICLE 9.
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13 | Section 99-999. Effective date. This Act takes effect upon | ||||||
14 | becoming law.".
|