Bill Text: OH HB426 | 2009-2010 | 128th General Assembly | Introduced

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Bill Title: To revise the Oil and Gas Law.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Introduced - Dead) 2010-01-27 - To Agriculture & Natural Resources [HB426 Detail]

Download: Ohio-2009-HB426-Introduced.html

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As Introduced

128th General Assembly Regular Session 2009-2010

H. B. No. 426

Representatives Skindell, Stewart 

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A BILL

To amend sections 1509.01 to 1509.05, 1509.06,

1

1509.061, 1509.07, 1509.071, 1509.072, 1509.08,

2

1509.09 to 1509.15, 1509.17, 1509.18, 1509.20 to

3

1509.22, 1509.221, 1509.222, 1509.223, 1509.224,

4

1509.225, 1509.23, 1509.24, 1509.26, 1509.30,

5

1509.31 to 1509.33, 1509.35, 1509.36, 1509.38,

6

1509.99, 1565.07, 1565.13, 1571.05, and 5749.06,

7

to enact sections 1509.051, 1509.062, 1509.073,

8

1509.074, 1509.075, 1509.076, 1509.081, 1509.19,

9

1509.191, 1509.34, and 1509.50, and to repeal

10

sections 1509.226, 1509.25, 1509.27, 1509.29,

11

1509.40, and 1509.41 of the Revised Code to revise

12

the Oil and Gas Law.

13

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

Section 1. That sections 1509.01, 1509.02, 1509.03, 1509.04,	14
1509.05, 1509.06, 1509.061, 1509.07, 1509.071, 1509.072, 1509.08,	15
1509.09, 1509.10, 1509.11, 1509.12, 1509.13, 1509.14, 1509.15,	16
1509.17, 1509.18, 1509.20, 1509.21, 1509.22, 1509.221, 1509.222,	17
1509.223, 1509.224, 1509.225, 1509.23, 1509.24, 1509.26, 1509.30,	18
1509.31, 1509.32, 1509.33, 1509.35, 1509.36, 1509.38, 1509.99,	19
1565.07, 1565.13, 1571.05, and 5749.06 be amended and sections	20
1509.051, 1509.062, 1509.073, 1509.074, 1509.075, 1509.076,	21
1509.081, 1509.19, 1509.191, 1509.34, and 1509.50 of the Revised	22
Code be enacted to read as follows:	23

Sec. 1509.01.  As used in this chapter:

24

(A) "Well" means any borehole, whether drilled or bored,	25
within the state for production, extraction, or injection of any	26
gas or liquid mineral, excluding potable water to be used as such,	27
but including natural or artificial brines and oil field waters.	28

(B) "Oil" means crude petroleum oil and all other	29
hydrocarbons, regardless of gravity, that are produced in liquid	30
form by ordinary production methods, but does not include	31
hydrocarbons that were originally in a gaseous phase in the	32
reservoir.	33

(C) "Gas" means all natural gas and all other fluid	34
hydrocarbons that are not oil, including condensate.	35

(D) "Condensate" means liquid hydrocarbons that were	36
originally in the gaseous phase in the reservoir.	37

(E) "Pool" means an underground reservoir containing a common	38
accumulation of oil or gas, or both, but does not include a gas	39
storage reservoir. Each zone of a geological structure that is	40
completely separated from any other zone in the same structure may	41
contain a separate pool.	42

(F) "Field" means the general area underlaid by one or more	43
pools.	44

(G) "Drilling unit" means the minimum acreage on which one	45
well may be drilled, but does not apply to a well for injecting	46
gas into or removing gas from a gas storage reservoir.	47

(H) "Waste" includes all of the following:

48

(1) Physical waste, as that term generally is understood in	49
the oil and gas industry;	50

(2) Inefficient, excessive, or improper use, or the	51
unnecessary dissipation, of reservoir energy;	52

(3) Inefficient storing of oil or gas;

53

(4) Locating, drilling, equipping, operating, or producing an	54
oil or gas well in a manner that reduces or tends to reduce the	55
quantity of oil or gas ultimately recoverable under prudent and	56
proper operations from the pool into which it is drilled or that	57
causes or tends to cause unnecessary or excessive surface loss or	58
destruction of oil or gas;	59

(5) Other underground or surface waste in the production or	60
storage of oil, gas, or condensate, however caused.	61

(I) "Correlative rights" means the reasonable opportunity to	62
every person entitled thereto to recover and receive the oil and	63
gas in and under the person's tract or tracts, or the equivalent	64
thereof, without having to drill unnecessary wells or incur other	65
unnecessary expense.	66

(J) "Tract" means a single, individually taxed parcel of land	67
appearing on the tax list.	68

(K) "Owner," unless referring to a mine, means the person who	69
has the right to drill on a tract or drilling unit, to drill into	70
and produce from a pool, and to appropriate the oil or gas	71
produced therefrom either for the person or for others, except	72
that a person ceases to be an owner with respect to a well when	73
the well has been plugged in accordance with applicable rules	74
adopted and orders issued under this chapter, according to the	75
records of the county in which a parcel of land is located, either	76
holds fee title to the surface estate of the parcel of land on	77
which oil or gas drilling operations may occur or holds fee title	78
to the subsurface mineral rights of the parcel of land.	79

(L) "Royalty interest" means the fee holder's share in the	80
production from a well.	81

(M) "Discovery well" means the first well capable of	82
producing oil or gas in commercial quantities from a pool.	83

(N) "Prepared clay" means a clay that is plastic and is	84
thoroughly saturated with fresh water to a weight and consistency	85
great enough to settle through saltwater in the well in which it	86
is to be used, except as otherwise approved by the chief of the	87
division of mineral resources management.	88

(O) "Rock sediment" means the combined cutting and residue	89
from drilling sedimentary rocks and formation.	90

(P) "Excavations and workings," "mine," and "pillar" have the	91
same meanings as in section 1561.01 of the Revised Code.	92

(Q) "Coal bearing township" means a township designated as	93
such by the chief under section 1561.06 of the Revised Code.	94

(R) "Gas storage reservoir" means a continuous area of a	95
subterranean porous sand or rock stratum or strata into which gas	96
is or may be injected for the purpose of storing it therein and	97
removing it therefrom and includes a gas storage reservoir as	98
defined in section 1571.01 of the Revised Code.	99

(S) "Safe Drinking Water Act" means the "Safe Drinking Water	100
Act," 88 Stat. 1661 (1974), 42 U.S.C.A. 300(f), as amended by the	101
"Safe Drinking Water Amendments of 1977," 91 Stat. 1393, 42	102
U.S.C.A. 300(f), the "Safe Drinking Water Act Amendments of 1986,"	103
100 Stat. 642, 42 U.S.C.A. 300(f), and the "Safe Drinking Water	104
Act Amendments of 1996," 110 Stat. 1613, 42 U.S.C.A. 300(f), and	105
regulations adopted under those acts.	106

(T) "Person" includes any political subdivision, department,	107
agency, or instrumentality of this state; the United States and	108
any department, agency, or instrumentality thereof; and any legal	109
entity defined as a person under section 1.59 of the Revised Code.	110

(U) "Brine" means all saline geological formation water	111
resulting from, obtained from, or produced in connection with the	112
exploration, drilling, or production of oil or gas.	113

(V) "Waters of the state" means all streams, lakes, ponds,	114
marshes, watercourses, waterways, springs, irrigation systems,	115
drainage systems, and other bodies of water, surface or	116
underground, natural or artificial, that are situated wholly or	117
partially within this state or within its jurisdiction, except	118
those private waters that do not combine or effect a junction with	119
natural surface or underground waters.	120

(W) "Exempt Mississippian well" means a well that meets all	121
of the following criteria:	122

(1) Was drilled and completed before January 1, 1980;

123

(2) Is located in an unglaciated part of the state;

124

(3) Was completed in a reservoir no deeper than the	125
Mississippian Big Injun sandstone in areas underlain by	126
Pennsylvanian or Permian stratigraphy, or the Mississippian berea	127
sandstone in areas directly underlain by Permian stratigraphy;	128

(4) Is used primarily to provide oil or gas for domestic use.

129

(X) "Exempt domestic well" means a well that meets all of the	130
following criteria:	131

(1) Is owned by the owner ofperson that owns the surface	132
estate of the tract on which the well is located;	133

(2) Is used primarily to provide gas for the owner's domestic	134
use;	135

(3) Is located more than twofour hundred feet horizontal	136
distance from any inhabited private dwelling house other than an	137
inhabited private dwelling house located on the tract on which the	138
well is located;	139

(4) Is located more than two hundred feet horizontal distance	140
from any public building that may be used as a place of resort,	141
assembly, education, entertainment, lodging, trade, manufacture,	142
repair, storage, traffic, or occupancy by the public;	143

(5) Is in compliance with the environmental and safety	144
standards established in this chapter and rules adopted under it.	145

(Y) "Urbanized area" means an area where a well or production	146
facilities of a well are located within a municipal corporation or	147
within a township that is contiguous to or includes any street or	148
highway along which are located at intervals of two hundred feet	149
or less structures that are used for business purposes or	150
residential dwellings.	151

(Z) "Well stimulation" or "stimulation of a well" means the	152
process of enhancing well productivity, including hydraulic	153
fracturing operations.	154

(AA) "Production operation" means site preparation, access	155
roads, drilling, well completion, well stimulation, well	156
operation, site reclamation, and well plugging. "Production	157
operation" also includes all of the following:	158

(1) The piping and equipment used for the production and	159
preparation of hydrocarbon gas or liquids for transportation or	160
delivery;	161

(2) The processes of extraction and recovery, lifting,	162
stabilization, treatment, separation, production processing,	163
storage, and measurement of hydrocarbon gas and liquids;	164

(3) The processes associated with production compression, gas	165
lift, gas injection, and fuel gas supply.	166

(BB) "Gathering" means the use of any pipeline or series of	167
pipelines to collect and transport natural gas from the	168
furthermost downstream point in a production operation to the	169
furthermost downstream point of the series of endpoints identified	170
as the end of a gathering line under the "Natural Gas Pipeline	171
Safety Act of 1968," 82 Stat. 720 (1968), 49. U.S.C. App. 1671 et	172
seq., as amended, and the regulations adopted under it, including,	173
without limitation, 49 C.F.R. part 192.	174

(CC) "Annular overpressurization" means the accumulation of	175
fluids within an annulus with sufficient pressure to allow	176
migration of annular fluids into underground sources of drinking	177
water.	178

(DD) "Idle and orphaned well" means a well for which a bond	179
has been forfeited or an abandoned well for which no money is	180
available to plug the well in accordance with this chapter and	181
rules adopted under it.	182

(EE) "Temporarily inactive well" means a well that has been	183
granted temporary inactive status under section 1509.062 of the	184
Revised Code.	185

(FF) "Material and substantial violation" means all of the	186
following:	187

(1) Failure to obtain a permit to drill, reopen, convert,	188
plugback, or plug a well under this chapter;	189

(2) Failure to obtain or maintain insurance coverage that is	190
required under this chapter;	191

(3) Failure to obtain or maintain a surety bond that is	192
required under this chapter;	193

(4) Failure to plug an abandoned well or idle and orphaned	194
well unless the well has been granted temporary inactive status	195
under section 1509.062 of the Revised Code or the chief has	196
approved another option concerning the abandoned well or idle and	197
orphaned well;	198

(5) Failure to restore a disturbed land surface as required	199
by section 1509.072 of the Revised Code;	200

(6) Failure to reimburse the oil and gas well fund pursuant	201
to a final order issued under section 1509.071 of the Revised	202
Code;	203

(7) Failure to comply with an order of the chief issued under	204
section 1509.04 of the Revised Code.	205

(GG) "Permittee" means a person who has been issued a permit	206
by the division of mineral resources management under this chapter	207
and who by contract has the right to exploit oil or gas within a	208
drilling unit.	209

(HH) "Local zoning authority" means the authority of a	210
municipal corporation that is charged with enacting zoning	211
requirements within the municipal corporation or the board of	212
township trustees, township zoning commission, or board of zoning	213
appeals of a township, as applicable.	214

(II) "Local inspector" means an individual who has the	215
authority in a municipal corporation or a township, as applicable,	216
to enforce any of the following:	217

(1) Local zoning codes;

218

(2) State and local building codes;

219

(3) Safety regulations;

220

(4) Health regulations.

221

Sec. 1509.02. (A)(1) There is hereby created in the	222
department of natural resources the division of mineral resources	223
management, which shall be administered by the chief of the	224
division of mineral resources management. TheExcept as provided	225
in divisions (A)(2) and (3) of this section, the division has sole	226
and exclusive authority to regulate the permitting, location, and	227
spacing of, installation, operation, maintenance, abandonment,	228
plugging, and site restoration of, disposal of waste from, and all	229
other matters related to oil and gas wells within the state that	230
are necessary to protect the health and safety of the public,	231
property, and environment. The regulation of oil and gas	232
activities is a matter of general statewide interest that requires	233
uniform statewide regulation, and this chapter and rules adopted	234
under it constitute a comprehensive plan with respect to all	235
aspects of the locating, drilling, and operating of oil and gas	236
wells within this state, including site restoration and disposal	237
of wastes from those wells. Nothing	238

(2) On and after the effective date of this amendment, no	239
well shall be drilled in an area that is zoned residential or	240
within one thousand feet of a residential dwelling unless	241
otherwise authorized by the local zoning authority.	242

(3) Nothing in this section affects the authority granted to	243
the director of transportation and local authorities in section	244
4513.34 of the Revised Code.	245

(B) The chief shall not hold any other public office, nor	246
shall the chief be engaged in any occupation or business that	247
might interfere with or be inconsistent with the duties as chief.	248

(C) All moneys collected by the chief pursuant to sections	249
1509.06, 1509.061, 1509.071, 1509.13, 1509.22, and 1509.222,	250
ninety per cent of moneys received by the treasurer of state from	251
the tax levied in divisions (A)(5) and (6) of section 5749.02, all	252
civil penalties paid under section 1509.33, and, notwithstanding	253
any section of the Revised Code relating to the distribution or	254
crediting of fines for violations of the Revised Code, all fines	255
imposed under divisions (A) and (B) of section 1509.99 of the	256
Revised Code and fines imposed under divisions (C) and (D) of	257
section 1509.99 of the Revised Code for all violations prosecuted	258
by the attorney general and for violations prosecuted by	259
prosecuting attorneys that do not involve the transportation of	260
brine by vehicle shall be deposited into the state treasury to the	261
credit of the oil and gas well fund, which is hereby created.	262
Fines imposed under divisions (C) and (D) of section 1509.99 of	263
the Revised Code for violations prosecuted by prosecuting	264
attorneys that involve the transportation of brine by vehicle	265
shall be paid to the county treasury of the county where the	266
violation occurred.	267

The fund shall be used for the purposes enumerated in	268
division (B) of section 1509.071 of the Revised Code, for the	269
expenses of the division associated with the administration of the	270
"Natural Gas Policy Act of 1978," 92 Stat. 3358, 15 U.S.C. 3301,	271
and for the division's other functions. The expenses of the	272
division in excess of the moneys available in the fund shall be	273
paid from general revenue fund appropriations to the department.	274

Sec. 1509.03.  The chief of the division of mineral resources	275
management shall adopt, rescind, and amend, in accordance with	276
Chapter 119. of the Revised Code, rules for the administration,	277
implementation, and enforcement of this chapter. The rules shall	278
establish standards governing the drilling of a new well, the	279
reopening of an existing well, the drilling of an existing well	280
deeper regardless of its depth or the geological zone from which	281
production occurs, and the plugging of an existing well. The rules	282
shall protect and preserve the health and safety of the public,	283
property, and the environment. In addition, the rules shall	284
include an identification of the subjects that the chief shall	285
address when attaching terms and conditions to a permit with	286
respect to a well and production facilities of a well that are	287
located within an urbanized area. The subjects shall include all	288
of the following:	289

(A) Safety concerning the drilling or operation of a well;	290
that includes, but is not limited to, all of the following:	291

(1) Implementation of a fail-safe warning system at a new or	292
existing oil or gas well for the detection of a leak of natural	293
gas, hydrogen sulfide, or radon, a spill of a toxic chemical, or	294
an explosion. In addition, the rules shall require the fail-safe	295
warning system to provide an audible alarm to warn the workers at	296
the surface location of the well and the public of such a leak,	297
spill, or explosion. The rules also shall require the fail-safe	298
warning system to notify the fire department within whose	299
jurisdiction the well is located of such a leak, spill, or	300
explosion.	301

(2) Designation of safe operating distances for a new well	302
that is located in an urbanized area;	303

(3) Emergency response and evacuation planning.

304

(B) Protection of the public and private water supply;

305

(C) Location of surface facilities of a well;

306

(D) Fencing and screening of surface facilities of a well;

307

(E) Containment and disposal of drilling and production	308
wastes;	309

(F) Construction of access roads for purposes of the drilling	310
and operation of a well;	311

(G) Noise mitigation;

312

(H) Nighttime lighting mitigation;

313

(I) Protection and preservation of the environment and	314
nonmineral natural resources.	315

The rules adopted by the chief under this section also shall	316
provide for the application of Chapter 3737. of the Revised Code	317
and rules adopted under it to the drilling and operation of a well	318
and to production facilities of a well that are located within an	319
urbanized area.	320

Prior to the issuance of a permit to drill a proposed well	321
that will be located within an urbanized area, the division of	322
mineral resources management shall conduct a site review to	323
identify and evaluate any site-specific terms and conditions that	324
may be attached to the permit.	325

No person shall violate any rule of the chief adopted under	326
this chapter.	327

Any order issuing, denying, or modifying a permit or notices	328
required to be made by the chief pursuant to this chapter shall be	329
made in compliance with Chapter 119. of the Revised Code, except	330
that personal service may be used in lieu of service by mail.	331
Every order issuing, denying, or modifying a permit under this	332
chapter and described as such shall be considered an adjudication	333
order for purposes of Chapter 119. of the Revised Code.	334

Where notice to the owners is required by this chapter, the	335
notice shall be given as prescribed by a rule adopted bydeemed	336
adequate if it provides reasonable or actual notice to the person,	337
owner, resident, applicant, or permittee whose interest will be	338
affected by an action of the chief to govern the giving of	339
notices. Such rule shall provide for notice by publication except	340
in those cases where other types of notice are necessary in order	341
to meet the requirements of the law.	342

The chief or the chief's authorized representative may at any	343
time enter upon lands, public or private, for the purpose of	344
administration or enforcement of this chapter, the rules adopted	345
or orders made thereunder, or terms or conditions of permits or	346
registration certificates issued thereunder and may examine and	347
copy records pertaining to the drilling, conversion, or operation	348
of a well for injection of fluids and logs required by division	349
(C) of section 1509.223 of the Revised Code. No person shall	350
prevent or hinder the chief or the chief's authorized	351
representative in the performance of official duties. If entry is	352
prevented or hindered, the chief or the chief's authorized	353
representative may apply for, and the court of common pleas may	354
issue, an appropriate inspection warrant necessary to achieve the	355
purposes of this chapter within the court's territorial	356
jurisdiction.	357

The chief may issue orders to enforce this chapter, rules	358
adopted thereunder, and terms or conditions of permits issued	359
thereunder. Any such order shall be considered an adjudication	360
order for the purposes of Chapter 119. of the Revised Code. No	361
person shall violate any order of the chief issued under this	362
chapter. No person shall violate a term or condition of a permit	363
or registration certificate issued under this chapter.	364

Orders of the chief denying, suspending, or revoking a	365
registration certificate; approving or denying approval of an	366
application for revision of a registered transporter's plan for	367
disposal; or to implement, administer, or enforce division (A) of	368
section 1509.224 and sections 1509.22, 1509.222, 1509.223, and	369
1509.225, and 1509.226 of the Revised Code pertaining to the	370
transportation of brine by vehicle and the disposal of brine so	371
transported are not adjudication orders for purposes of Chapter	372
119. of the Revised Code. The chief shall issue such orders under	373
division (A) or (B) of section 1509.224 of the Revised Code, as	374
appropriate.	375

As used in this section, "urbanized area" means an area where	376
a well or production facilities of a well are located within a	377
municipal corporation or within a township that has an	378
unincorporated population of more than five thousand in the most	379
recent federal decennial census prior to the issuance of the	380
permit for the well or production facilities.	381

Sec. 1509.04. (A) The chief of the division of mineral	382
resources management, or the chief's authorized representatives,	383
shall enforce this chapter and the rules, terms and conditions of	384
permits and registration certificates, and orders adopted or	385
issued pursuant thereto, except that any "peace officer," as	386
defined in section 2935.01 of the Revised Code, may arrest for	387
violations of this chapter involving transportation of brine by	388
vehicle. The	389

(B) The chief or the chief's authorized representative shall	390
issue a citation to a permittee for a violation of this chapter or	391
rules adopted under it, terms and conditions of a permit issued	392
under it, a registration certificate that is required under this	393
chapter, or orders issued under this chapter. A citation may be in	394
the form of a compliance notice, administrative order, or letter.	395

(C) The chief may issue an order to initiate an enforcement	396
action for a material and substantial violation. In addition, the	397
chief may issue a suspension order for failure to comply with an	398
enforcement action for a material and substantial violation or	399
other violation.	400

(D)(1) The chief may order the immediate suspension of	401
drilling, operating, or plugging activities that are related to a	402
material and substantial violation and suspend and revoke an	403
unused permit after finding that a permittee is causing, engaging	404
in, or maintaining a condition or activity that the chief	405
determines presents an immediate danger to the health or safety of	406
the public or that results in or is likely to result in	407
substantial damage to the natural resources of this state. The	408
chief may issue such an order without prior notification if	409
reasonable attempts to notify the permittee have failed or if the	410
permittee has failed to comply with prior enforcement actions, but	411
in such an event notification shall be given as soon thereafter as	412
practical.	413

(2) Not later than five days after the issuance of a	414
suspension order, the chief shall provide the permittee an	415
opportunity to be heard and to present evidence that the condition	416
or activity does not present an immediate danger to the public	417
health or safety or is not likely to result in substantial damage	418
to natural resources. If the chief, after considering evidence	419
presented by the permittee, determines that the activities do not	420
present such a threat, the chief shall revoke the suspension	421
order.	422

Notwithstanding any other provision of this chapter, the	423
permittee may appeal a suspension order to the court of common	424
pleas of the county in which the activity that is the subject of	425
the order is located. In such an appeal, any person may file a	426
motion to intervene to uphold a suspension order if the person	427
demonstrates that the person has an interest that is or may be	428
adversely affected by the activity for which the chief has issued	429
a suspension order under this section. If the court upholds the	430
suspension order, the court may require the appellant permittee to	431
pay the court costs and reasonable attorney fees of the person	432
intervening.	433

The chief also may issue a bond forfeiture order pursuant to	434
section 1509.071 of the Revised Code.	435

The chief may notify drilling contractors, transporters,	436
service companies, or other similar entities of the compliance	437
status of an operator.	438

(3) If the permittee fails to comply with a prior enforcement	439
action, the chief may issue a suspension order without prior	440
notification, but in such an event the chief shall give notice as	441
soon thereafter as practical. Not later than five calendar days	442
after the issuance of an order, the chief shall provide the	443
permittee an opportunity to be heard and to present evidence that	444
required records, reports, or logs have been submitted. If the	445
chief, after considering the evidence presented by the permittee,	446
determines that the reporting requirements have been satisfied,	447
the chief shall revoke the suspension order.	448

Notwithstanding any other provision of this chapter, the	449
permittee may appeal a suspension order to the court of common	450
pleas of the county in which the activity that is the subject of	451
the suspension order is located. In such an appeal, any person may	452
file a motion to intervene to uphold a suspension order if the	453
person demonstrates that the person has an interest that is or may	454
be adversely affected by the activity for which the chief has	455
issued a suspension order under this section. If the court upholds	456
the suspension order, the court may require the appellant	457
permittee to pay the court costs and reasonable attorney's fees of	458
the person intervening.	459

The chief also may issue a bond forfeiture order pursuant to	460
section 1509.071 of the Revised Code.	461

(E) The prosecuting attorney of the county or the attorney	462
general, upon the request of the chief, may apply to the court of	463
common pleas in the county in which any of the provisions of this	464
chapter or any rules, terms or conditions of a permit or	465
registration certificate, or orders adopted or issued pursuant to	466
this chapter are being violated for a temporary restraining order,	467
preliminary injunction, or permanent injunction restraining any	468
person from such violation. In such an action, any person may file	469
a motion to intervene for the issuance of a temporary restraining	470
order, preliminary injunction, or permanent injunction if the	471
person demonstrates that the person has an interest that is or may	472
be adversely affected by the violation for which the prosecuting	473
attorney or attorney general has commenced the action.	474

(F) The chief may enter into a compliance agreement by	475
consent decree if such an agreement will end a violation.	476

(G) The chief may request a peace officer or a fire	477
department to respond to the surface location of a well and	478
temporarily assist the division of mineral resources management in	479
the enforcement or administration of this chapter until a mineral	480
resources inspector arrives at the well.	481

Sec. 1509.05.  No person shall drill a new well, drill an	482
existing well any deeper, reopen a well, convert a well to any use	483
other than its original purpose, or plug back a well to a source	484
of supply different from the existing pool, without having a	485
permit to do so issued by the chief of the division of mineral	486
resources management, and until. However, the chief shall not	487
issue such a permit to a person unless the terms and conditions of	488
the permit will not conflict with any zoning, health, and safety	489
ordinances and resolutions that are in effect in the municipal	490
corporation or the township where the drilling tract and the well	491
are to be located.	492

A permittee shall post or display the original permit or a	493
photostatic copy thereof is posted or displayed in a conspicuous	494
and easily accessible place at the well site, with the name,	495
current address, and telephone number of the permit holder	496
permittee and the telephone numbers for fire and emergency medical	497
services maintained on the posted permit or copy. The permit or a	498
copy shall be continuously displayed in suchthat manner at all	499
times during the work authorized by the permit.	500

SuchA permit shall be issued by the chief in accordance with	501
this chapter andfor a well that is or is to be located in an	502
urbanized area shall be valid for twelve months, and a permit for	503
a well that is or is to be located in any other area shall be	504
valid for twenty-four months.	505

Sec. 1509.051. A permit or order issued by the chief of the	506
division of mineral resources management under this chapter shall	507
not authorize or allow a permittee or any other person to do any	508
of the following:	509

(A) Drill an oil or gas well within the boundaries of a	510
state, municipal, or township park or within a recreational area	511
or nature preserve;	512

(B) Drill an oil or gas well within two thousand feet of a	513
lake, stream, or other body of water that is used as a source of	514
drinking water;	515

(C) Drill an oil or gas well without the use of a blow-out	516
preventer;	517

(D) Bury hazardous waste, radioactive material, or chemicals	518
used in fracturing subsurface strata or otherwise dispose of any	519
toxic substance at the location of a well. As used in this	520
division:	521

(1) "Hazardous waste" has the same meaning as in section	522
3734.01 of the Revised Code.	523

(2) "Radioactive material" has the same meaning as in section	524
3748.01 of the Revised Code.	525

(3) "Toxic substance" has the same meaning as in section	526
3716.01 of the Revised Code.	527

(E) Drill a new well or drill an existing well deeper without	528
implementing best operating standards and practices that are	529
recognized by the oil and gas industry.	530

Sec. 1509.06. (A) An application for a permit to drill a new	531
well, drill an existing well deeper, reopen a well, convert a well	532
to any use other than its original purpose, or plug back a well to	533
a different source of supply, including associated production	534
operations, shall be filed with the chief of the division of	535
mineral resources management upon such form as the chief	536
prescribes and shall contain each of the following that is	537
applicable:	538

(1) The name and address of the ownerapplicant and, if a	539
corporation, the name and address of the statutory agent;. In	540
addition, the application shall include the name and telephone	541
number of a person that may be contacted in an emergency and who	542
is located within a twenty-minute travel time from the location of	543
the proposed well or well.	544

(2) The signature of the ownerapplicant or the owner's	545
applicant's authorized agent. When an authorized agent signs an	546
application, it shall be accompanied by a certified copy of the	547
appointment as such agent.	548

(3) The names and addresses of all persons holding the	549
royalty interest in the tract upon which the well is located or is	550
to be drilled or within a proposed drilling unit;	551

(4) The location of the tract or drilling unit on which the	552
well is located or is to be drilled identified by section or lot	553
number, city, village, township, and county;	554

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

555

(6) The geological formation to be tested or used and the	556
proposed total depth of the well;	557

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

558

(8) If the well is for the injection of a liquid, identity of	559
the geological formation to be used as the injection zone and the	560
composition of the liquid to be injected;	561

(9) For an application for a permit to drill a new well, aA	562
sworn statement that the applicant has provided notice of the	563
application to the owner of each occupiedeach person residing in	564
a dwelling unit that is located within five hundredthree thousand	565
feet of the surface location of the proposed well if the surface	566
location will be less than five hundred feet from the boundary of	567
the drilling unit and more than fifteen occupied dwelling units	568
are located less than five hundred feet from the surface location	569
of the well, excluding any dwelling that is located on real	570
property all or any portion of which is included in the drilling	571
unitor well. The notice shall contain athe following statement	572
that an application has been filed with the division of mineral	573
resources management, identify the name of the applicant and the	574
proposed well location, include the name and address of the	575
division, and contain a statement that comments regarding the	576
application may be sent to the division:	577

"PLEASE BE ADVISED. AN APPLICATION HAS BEEN FILED WITH THE	578
DIVISION OF MINERAL RESOURCES MANAGEMENT IN THE DEPARTMENT OF	579
NATURAL RESOURCES FOR A PERMIT TO DRILL AN OIL OR GAS WELL ON	580
PROPERTY LOCATED AT [address of the location of the proposed	581
surface location or surface location of the well]. A PUBLIC	582
MEETING WILL BE HELD [location, date, and time of the meeting] AT	583
WHICH YOU MAY APPEAR AND COMMENT ON WHETHER THE APPLICATION FOR	584
THE PERMIT SHOULD BE APPROVED. If YOU CANNOT ATTEND THE MEETING,	585
YOU MAY CONTACT THE DIVISION AT [telephone number of the division	586
of mineral resources management] TO PROVIDE YOUR COMMENTS. THE	587
COMMENT PERIOD CONCERNING THE APPLICATION CLOSES [date that is	588
seven business days after the date of the scheduled public	589
meeting]. PLEASE REFER TO APPLICATION NUMBER [number of the	590
application] WHEN YOU PROVIDE YOUR COMMENTS. THE APPLICATION WAS	591
FILED BY [name and phone number of the person that filed the	592
application and the name of the person's statutory agent, if	593
applicable]. The"	594

The notice shall be issued not later than fifteen days prior	595
to the date of the public meeting that is required under this	596
section and may be provided by hand delivery or regular mail. In	597
addition, not later than fifteen days prior to the public meeting,	598
the notice shall be published in a newspaper of general	599
circulation in the county in which the well is to be or is	600
located. The identity of the owners of occupiedpersons residing	601
in dwelling units shall be determined using the tax records and	602
property records of the municipal corporation or county in which	603
the dwelling unit is located as of the date of the notice.	604

(10) A description of the qualifications of the person who	605
will drill, reopen, convert, or plug back the well, including a	606
description of the drilling procedures and safety procedures that	607
will be used and if those procedures are consistent with the best	608
standards and practices that are recognized by the oil and gas	609
industry. The description also shall include an explanation of the	610
person's experience concerning oil and gas well operations, the	611
person's safety record for such operations, and information	612
concerning the condition and maintenance of the person's equipment	613
that will be used.	614

(11) A plan for restoration of the land surface disturbed by	615
drilling operations. The plan shall provide for compliance with	616
the restoration requirements of division (A) of section 1509.072	617
of the Revised Code and any rules adopted by the chief pertaining	618
to that restoration.	619

(11)(12) A description by name or number of the county,	620
township, and municipal corporation roads, streets, and highways	621
that the applicant anticipates will be used for access to and	622
egress from the well site;	623

(12)(13) Such other relevant information as the chief	624
prescribes by rule.	625

Each application shall be accompanied by a map, on a scale	626
not smaller than four hundred feet to the inch, prepared by an	627
Ohio registered surveyor, showing the location of the well and	628
containing such other data as may be prescribed by the chief. If	629
the well is or is to be located within the excavations and	630
workings of a mine, the map also shall include the location of the	631
mine, the name of the mine, and the name, address, and telephone	632
number of the person operating the mine.	633

(B) The chief shall cause a copy of the weekly circular	634
prepared by the division to be provided to the county engineer of	635
each county that contains active or proposed drilling activity.	636
The weekly circular shall contain, in the manner prescribed by the	637
chief, the names of all applicants for permits, the location of	638
each well or proposed well, the information required by division	639
(A)(11) of this section, and any additional information the chief	640
prescribes. In addition, the chief promptly shall transfer an	641
electronic copy or facsimile, or if those methods are not	642
available to a municipal corporation or township, a copy via	643
regular mail, of a drilling permit application to the clerk of the	644
legislative authority of the municipal corporation or to the clerk	645
of the township in which the well or proposed well is or is to be	646
located if the legislative authority of the municipal corporation	647
or the board of township trustees has asked to receive copies of	648
such applications and the appropriate clerk has provided the chief	649
an accurate, current electronic mailing address or facsimile	650
number, as applicable(1) Not later than five days after receipt of	651
an application and the applicable fee, the chief shall provide	652
written notification that the application has been filed to the	653
director of environmental protection, the fire chief of the fire	654
department within whose jurisdiction the well that is the subject	655
of the application will be or is located, and the local inspector	656
within whose jurisdiction the well that is the subject of the	657
application will be or is located. The notice shall be sent	658
electronically or by regular mail and shall be posted on the	659
division of mineral resources management's web site. In addition,	660
the chief shall schedule a date and a time that is mutually	661
acceptable to all of the persons that the chief has so notified	662
for an inspection of the site that is the subject of the	663
application for purposes of division (C)(2) of this section.	664

(2) The chief shall maintain a database on the division of	665
mineral resources management's web site that is accessible to and	666
searchable by the public. The database shall contain all of the	667
following:	668

(a) A listing of all wells that are being drilled and of all	669
wells that are proposed to be drilled in this state;	670

(b) The names and contact information of all permit holders	671
and applicants for permits under this chapter;	672

(c) The location of each well or proposed well in this state;

673

(d) The information that is required by divisions (A)(1),	674
(4), (5), (8), and (12) of this section for each permit	675
application;	676

(e) The map that is required by division (A) of this section	677
for each permit application;	678

(f) Any other information that the chief requires.

679

(C) The chief shall not issue a permit for at least ten days	680
after the date of filing of the application for the permit unless,	681
upon reasonable cause shown, the chief waives that period or a	682
request for expedited review is filed under this section. However,	683
the chief shall issue a permit within twenty-one days of the	684
filing of the application unless the chief denies the application	685
by orderUpon receipt of an application and all accompanying	686
information that is required by this section, but before	687
determining whether to approve an application, approve an	688
application with modifications, or deny an application, the chief	689
shall do all of the following:	690

(1) Review the application for compliance with division (A)	691
of this section and rules adopted pursuant to it. If the chief	692
finds any errors or omissions in an application, the chief	693
immediately shall notify the applicant of the errors and	694
omissions. Not later than thirty days after receipt of such a	695
notice, an applicant shall correct the errors and omissions. If	696
the applicant does not correct all of the errors and omissions	697
within thirty days after receipt of the notice, the chief shall	698
deny the application.	699

(2) Conduct an inspection of the surface location of the	700
proposed well or well together with an inspector from the	701
environmental protection agency, the fire chief of the fire	702
department within whose jurisdiction the well that is the subject	703
of the application will be or is located, and the local inspector	704
within whose jurisdiction the well that is the subject of the	705
application will be or is located to determine if the location and	706
operation will comply with state and federal environmental laws,	707
applicable fire codes, and local zoning, health, and safety	708
requirements. Any person participating in such an inspection may	709
submit a written objection to the chief opposing the issuance of a	710
permit to the applicant. If the chief receives a written objection	711
prior to approving the application or approving the application	712
with modifications, the chief shall deny the application.	713

(3) Review the qualifications of the applicant to determine	714
if the applicant is qualified to perform the proposed operation in	715
compliance with the requirements established in this chapter and	716
rules adopted under it. In reviewing the applicant's	717
qualifications, the chief may consider the applicant's current	718
violations or unresolved violations of prior orders as grounds for	719
denying the application. In addition, the chief shall deny an	720
application if the applicant has been issued a notice of material	721
and substantial violation or a suspension order and the applicant	722
continues to be in substantial noncompliance.	723

(4) Conduct at a minimum one public meeting concerning the	724
proposed well or well and provide the applicant and any interested	725
person an opportunity to be heard and to submit comments. The	726
public meeting shall be conducted in the municipal corporation or	727
township in which the well or proposed well is or is to be	728
located.	729

Upon satisfaction of the requirements established in	730
divisions (C)(1) to (4) of this section, the chief shall issue an	731
order approving the permit, approving the permit with	732
modifications, or denying the permit in accordance with the time	733
frames established in divisions (D) and (E) of this section. The	734
chief shall issue an order denying a permit if the chief	735
determines that the applicant is not qualified to perform the	736
proposed drilling, reopening, converting, or plugging in	737
compliance with the requirements established in this chapter and	738
rules adopted under it. An applicant who is denied a permit by the	739
chief may appeal the chief's order denying the permit in	740
accordance with section 1509.36 of the Revised Code.	741

(D)(1) The chief shall not issue a permit for a well that is	742
or is to be located in an urbanized area until all of the	743
requirements established in division (C) of this section are	744
satisfied or until thirty days after the receipt of the	745
application for the permit, whichever time period is longer.	746
However, the chief shall issue a permit after all of the	747
requirements established in division (C) of this section are	748
satisfied or within thirty-five days after receipt of the	749
application for the permit, whichever time period is longer,	750
unless the chief denies the application by order.	751

(2) The chief shall not issue a permit for a well that is or	752
is to be located in an area that is not an urbanized area until	753
all of the requirements established in division (C) of this	754
section are satisfied or until thirty-five days after the receipt	755
of the application for the permit, whichever time period is	756
longer, unless a request for an expedited review is filed under	757
this section or the chief denies the application by order.	758

(E) An applicant may file a request with the chief for	759
expedited review of a permit application if the well is not or is	760
not to be located in an urbanized area, in a gas storage reservoir	761
or, in a reservoir protective area, as "reservoir protective area"	762
is defined in section 1571.01 of the Revised Code or, in a natural	763
area or nature preserve as defined in section 1517.01 of the	764
Revised Code. If the well is or is to be located in a coal bearing	765
township, the application shall be accompanied by the affidavit of	766
the landowner prescribed in section 1509.08 of the Revised Code.	767

In addition to a complete application for a permit that meets	768
the requirements of this section and the permit fee prescribed by	769
this section, a request for expedited review shall be accompanied	770
by a separate nonrefundable filing fee of five hundred dollars.	771
Upon the filing of a request for expedited review, the chief shall	772
cause the county engineer of the county in which the well is or is	773
to be located to be notified of the filing of the permit	774
application and the request for expedited review by telephone or	775
other means that in the judgment of the chief will provide timely	776
notice of the application and request. TheIf all of the	777
requirements established in division (C) of this section are	778
satisfied, the chief shall issue a permit within seventwenty-five	779
days of the filing of the requestapplication unless the chief	780
denies the application by order. Notwithstanding the provisions	781
of this section governing expedited review of permit applications,	782
the chief may refuse to accept requests for expedited review if,	783
in the chief's judgment, the acceptance of the requests would	784
prevent the issuance, within twenty-one days of their filing, of	785
permits for which applications are pending.	786

(E)(F) A well shall be drilled and operated in exact	787
accordance with the plans, sworn statements, and other information	788
submitted in the approved application and with all terms and	789
conditions of the permit. A permittee shall notify the chief or a	790
mineral resources inspector within twenty-four hours of a	791
violation of any term or condition of the permit that occurs	792
during drilling operations.	793

(F) The chief shall issue an order denying a permit if the	794
chief finds that there is a substantial risk that the operation	795
will result in violations of this chapter or rules adopted under	796
it that will present an imminent danger to public health or safety	797
or damage to the environment, provided that where the chief finds	798
that terms or conditions to the permit can reasonably be expected	799
to prevent such violations, the chief shall issue the permit	800
subject to those terms or conditions, including, if applicable,	801
terms and conditions regarding subjects identified in rules	802
adopted under section 1509.03 of the Revised Code.	803

(G) Each application for a permit required by section 1509.05	804
of the Revised Code, except an application to plug back an	805
existing well that is required by that section and an application	806
for a well drilled or reopened for purposes of section 1509.22 of	807
the Revised Code, also shall be accompanied by a nonrefundable fee	808
as follows:	809

(1) TwoFive hundred fifty dollars for a permit to conduct	810
activities in a township with a population of fewer than five	811
thousand;	812

(2) FiveOne thousand five hundred dollars for a permit to	813
conduct activities in a township with a population of five	814
thousand or more, but fewer than ten thousand;	815

(3) Seven hundred fiftyTwo thousand five hundred dollars for	816
a permit to conduct activities in a township with a population of	817
ten thousand or more, but fewer than fifteen thousand;	818

(4) OneThree thousand five hundred dollars for a permit to	819
conduct activities in either of the following:	820

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

821

(b) A municipal corporation regardless of population.

822

For purposes of calculating fee amounts, populations shall be	823
determined using the most recent federal decennial census.	824

Each application for the revision or reissuance of a permit	825
shall be accompanied by a nonrefundable fee of two hundred fifty	826
dollars. Each application for the reissuance of a permit shall be	827
accompanied by a nonrefundable fee of five hundred dollars.	828

(H) The chief may order the immediate suspension of drilling,	829
operating, or plugging activities after finding that any person is	830
causing, engaging in, or maintaining a condition or activity that	831
in the chief's judgment presents an imminent danger to public	832
health or safety or results in or is likely to result in immediate	833
substantial damage to natural resources or for nonpayment of a fee	834
required by this section. The chief may order the immediate	835
suspension of the drilling or reopening of a well in a coal	836
bearing township after determining that the drilling or reopening	837
activities present an imminent and substantial threat to public	838
health or safety or to miners' health or safety. Before issuing	839
any such order, the chief shall notify the owner in such manner as	840
in the chief's judgment would provide reasonable notification that	841
the chief intends to issue a suspension order. The chief may issue	842
such an order without prior notification if reasonable attempts to	843
notify the owner have failed, but in such an event notification	844
shall be given as soon thereafter as practical. Within five	845
calendar days after the issuance of the order, the chief shall	846
provide the owner an opportunity to be heard and to present	847
evidence that the condition or activity is not likely to result in	848
immediate substantial damage to natural resources or does not	849
present an imminent danger to public health or safety or to	850
miners' health or safety, if applicable. In the case of activities	851
in a coal bearing township, if the chief, after considering	852
evidence presented by the owner, determines that the activities do	853
not present such a threat, the chief shall revoke the suspension	854
order. Notwithstanding any provision of this chapter, the owner	855
may appeal a suspension order directly to the court of common	856
pleas of the county in which the activity is located or, if in a	857
coal bearing township, to the reclamation commission under section	858
1513.13 of the Revised CodeIf the chief finds that a permittee is	859
drilling or conducting other operations in violation of a permit,	860
the requirements established in this chapter, or rules adopted	861
under it and there is substantial risk that the drilling or	862
operations likely will result in danger to the health or safety of	863
the public or damage to the environment, the chief shall issue an	864
order to the permittee to cease or correct the violation	865
immediately. If the permittee does not cease or correct the	866
violation and appears to continue the violation, the chief shall	867
issue an order that revokes the permittee's permit and that	868
requires the permittee to cease drilling or other operations	869
immediately.	870

Sec. 1509.061. An owner of a well who has been issued a	871
permit under section 1509.06 of the Revised CodeA permittee may	872
submit to the chief of the division of mineral resources	873
management, on a form prescribed by the chief, a request to revise	874
an existing tract upon which exists a producing or idlethe terms	875
and conditions of a permit for the drilling of a well. The chief	876
shall adopt, and may amend and rescind, rules under section	877
1509.03 of the Revised Code that are necessary for the	878
administration of this section. The rules at least shall stipulate	879
the information to be included on the request form and shall	880
establish a fee to be paid by the person submitting the request,	881
which fee shall not exceed two hundred fifty dollarsthe amount	882
of the applicable fee established in division (G) of section	883
1509.06 of the Revised Code.	884

The chief shall not approve a request submitted under this	885
section unless itif approving the request would result in a	886
violation of this chapter or rules adopted under it, including	887
provisions establishing spacing or minimum acreage requirements.	888

Sec. 1509.062. (A)(1) The permittee of a well that has not	889
been completed, a well that has not produced within one year after	890
completion, or an existing well that has no reported production	891
for two consecutive reporting periods as reported in accordance	892
with section 1509.11 of the Revised Code shall plug the well in	893
accordance with section 1509.12 of the Revised Code, obtain	894
temporary inactive well status for the well in accordance with	895
this section, or perform another activity regarding the well that	896
is approved by the chief of the division of mineral resources	897
management.	898

(2) If a well has a reported annual production that is less	899
than one hundred thousand cubic feet of natural gas or fifteen	900
barrels of crude oil, or a combination of natural gas or crude oil	901
in an amount that is determined by the chief, the chief may	902
require the permittee of the well to submit an application for	903
temporary inactive well status under this section for the well.	904

(B) In order for the permittee of a well to submit an	905
application for temporary inactive well status for the well under	906
this division, the permittee and the well shall be in compliance	907
with this chapter and rules adopted under it, any terms and	908
conditions of the permit for the well, and applicable orders	909
issued by the chief. An application for temporary inactive status	910
for a well shall be submitted to the chief on a form prescribed	911
and provided by the chief and shall contain all of the following:	912

(1) The permittee's name and address and, if the permittee is	913
a corporation, the name and address of the corporation's statutory	914
agent;	915

(2) The signature of the permittee or of the permittee's	916
authorized agent. When an authorized agent signs an application,	917
the application shall be accompanied by a certified copy of the	918
appointment as such agent.	919

(3) The permit number assigned to the well. If the well has	920
not been assigned a permit number, the chief shall assign a permit	921
number to the well.	922

(4) A map, on a scale not smaller than four hundred feet to	923
the inch, that shows the location of the well and the tank	924
battery, that includes the latitude and longitude of the well, and	925
that contains all other data that are required by the chief;	926

(5) A demonstration that the well is of future utility and	927
that the applicant has a viable plan to utilize the well within a	928
reasonable period of time;	929

(6) A demonstration that the well poses no threat to the	930
health or safety of persons, property, or the environment;	931

(7) Any other relevant information that the chief prescribes	932
by rule.	933

The chief may waive any of the requirements established in	934
divisions (B)(1) to (6) of this section if the division of mineral	935
resources management possesses a current copy of the information	936
or document that is required in the applicable division.	937

(C) Upon receipt of an application for temporary inactive	938
well status, the chief shall review the application and shall	939
either deny the application by issuing an order or approve the	940
application. The chief shall approve the application only if the	941
chief determines that the well that is the subject of the	942
application poses no threat to the health or safety of persons,	943
property, or the environment. If the chief approves the	944
application, the chief shall notify the applicant of the chief's	945
approval. Upon receipt of the chief's approval, the permittee	946
shall shut in the well and empty all liquids and gases from all	947
storage tanks, pipelines, and other equipment associated with the	948
well. In addition, the permittee shall maintain the well, other	949
equipment associated with the well, and the surface location of	950
the well in a manner that prevents hazards to the health and	951
safety of people and the environment. The permittee shall inspect	952
the well at least every six months and submit to the chief within	953
fourteen days after the inspection a record of inspection on a	954
form prescribed and provided by the chief.	955

(D) Not later than thirty days prior to the expiration of	956
temporary inactive well status or a renewal of temporary inactive	957
well status approved by the chief for a well, the permittee of the	958
well may submit to the chief an application for renewal of the	959
temporary inactive well status on a form prescribed and provided	960
by the chief. The application shall include a detailed plan that	961
describes the ultimate disposition of the well, the time frames	962
for that disposition, and any other information that the chief	963
determines is necessary. The chief shall either deny an	964
application by order or approve the application. If the chief	965
approves the application, the chief shall notify the permittee of	966
the well of the chief's approval.	967

(E) The chief may require a permittee to provide a surety	968
bond in an amount not to exceed ten thousand dollars for each of	969
the permittee's wells that has been approved by the chief for	970
temporary inactive well status.	971

(F) An application for temporary inactive well status shall	972
be accompanied by a nonrefundable fee of one hundred dollars. An	973
application for a renewal of temporary inactive well status shall	974
be accompanied by a nonrefundable fee of two hundred fifty dollars	975
for the first renewal and five hundred dollars for each subsequent	976
renewal.	977

(G) Temporary inactive well status approved by the chief	978
expires one year after the date of approval of the application for	979
temporary inactive well status or production from the well	980
commences, whichever occurs sooner. In addition, a renewal of a	981
temporary inactive well status expires one year after the	982
expiration date of the initial temporary inactive well status or	983
one year after the expiration date of the previous renewal of the	984
temporary inactive well status, as applicable, or production from	985
the well commences, whichever occurs sooner.	986

(H) The permittee of a well that has been approved by the	987
chief for temporary inactive well status may commence production	988
from the well at any time. Not later than sixty days after the	989
commencement of production from such a well, the permittee shall	990
notify the chief of the commencement of production.	991

(I) This chapter and rules adopted under it, any terms and	992
conditions of the permit for a well, and applicable orders issued	993
by the chief apply to a well that has been approved by the chief	994
for temporary inactive well status or renewal of that status.	995

Sec. 1509.07. An owner(A) A permittee of any well, except	996
an exempt Mississippian well or an exempt domestic well, shall	997
obtain liability insurance coverage from a company authorized to	998
do business in this state in an amount of not less than three	999
hundred thousandfive million dollars bodily injury coverage and	1000
three hundred thousandten million dollars property damage	1001
coverage to pay damages for injury to persons or damage to	1002
property caused by the drilling, operation, or plugging of all the	1003
owner'spermittee's wells in this state. The ownerpermittee shall	1004
maintain that coverage until all the owner'spermittee's wells are	1005
plugged and abandoned as required by lawand maintained as	1006
required by this chapter and rules adopted under it or are	1007
transferred to a permittee who has obtained insurance as required	1008
by this section and who is not under a notice of material and	1009
substantial violation or under a suspension order. The owner	1010
permittee shall provide proof of liability insurance coverage to	1011
the chief of the division of mineral resources management upon	1012
request. Upon failure of the ownerpermittee to provide that proof	1013
when requested, the chief may order the suspension of any	1014
outstanding permits and operations of the ownerpermittee until	1015
the ownerpermittee provides proof of the required insurance	1016
coverage.	1017

(B) Except as otherwise provided in this section, an ownera	1018
permittee of any well that is not an exempt Mississippian well or	1019
an exempt domestic well, before being issued a permit under	1020
section 1509.06 of the Revised Code, shall execute and file with	1021
the division of mineral resources management a surety bond in an	1022
amount equal to the estimated cost to plug the well and restore	1023
the surface location of the well and conditioned on compliance	1024
with the restoration requirements of section 1509.072, the	1025
plugging requirements of section 1509.12, the permit provisions of	1026
section 1509.13 of the Revised Code, and all rules and orders of	1027
the chief relating thereto, in an amount set by rule of the chief.	1028

The ownerpermittee of a well that is not an exempt	1029
Mississippian well or an exempt domestic well may deposit with the	1030
chief, instead of a surety bond, cash in an amount equal to the	1031
surety bond as prescribed pursuant to this section or negotiable	1032
certificates of deposit or irrevocable letters of credit, issued	1033
by any bank organized or transacting business in this state or by	1034
any savings and loan association as defined in section 1151.01 of	1035
the Revised Code, having a cash value equal to or greater than the	1036
amount of the surety bond as prescribed pursuant to this section.	1037
Cash or certificates of deposit shall be deposited upon the same	1038
terms as those upon which surety bonds may be deposited. If	1039
certificates of deposit are deposited with the chief instead of a	1040
surety bond, the chief shall require the bank or savings and loan	1041
association that issued any such certificate to pledge securities	1042
of a cash value equal to the amount of the certificate that is in	1043
excess of the amount insured by any of the agencies and	1044
instrumentalities created under the "Federal Deposit Insurance	1045
Act," 64 Stat. 873 (1950), 12 U.S.C. 1811, as amended, and	1046
regulations adopted under it, including at least the federal	1047
deposit insurance corporation, bank insurance fund, and savings	1048
association insurance fund. The securities shall be security for	1049
the repayment of the certificate of deposit.	1050

Immediately upon a deposit of cash, certificates of deposit,	1051
or letters of credit with the chief, the chief shall deliver them	1052
to the treasurer of state who shall hold them in trust for the	1053
purposes for which they have been deposited.	1054

Instead of a surety bond, the chief may accept proof of	1055
financial responsibility consisting of a sworn financial statement	1056
showing a net financial worth within this state equal to twice the	1057
amount of the bond for which it substitutes and, as may be	1058
required by the chief, a list of producing properties of the owner	1059
within this state or other evidence showing ability and intent to	1060
comply with the law and rules concerning restoration and plugging	1061
that may be required by rule of the chief. The owner of an exempt	1062
domestic or exempt Mississippian well is not required to file	1063
scheduled updates of the financial documents, but shall file	1064
updates of those documents if requested to do so by the chief. The	1065
owner of a nonexempt domestic or nonexempt Mississippian well	1066
shall file updates of the financial documents in accordance with a	1067
schedule established by rule of the chief. The chief, upon	1068
determining that an owner for whom the chief has accepted proof of	1069
financial responsibility instead of bond(C) A permittee of an	1070
exempt Mississippian well or an exempt domestic well shall	1071
demonstrate financial responsibility to the chief by providing one	1072
of the following:	1073

(1) Proof of deposits in a bank organized or transacting	1074
business in this state or in a savings and loan association as	1075
defined in section 1151.01 of the Revised Code in an amount that	1076
is equal to or greater than the amount of the surety bond that is	1077
otherwise required to be executed and filed with the chief by this	1078
section;	1079

(2) Negotiable certificates of deposit or irrevocable letters	1080
of credit issued by such a bank or savings and loan association	1081
having a cash value that is equal to or greater than the amount of	1082
the surety bond that is otherwise required to be executed and	1083
filed with the chief by this section.	1084

If the permittee of an exempt Mississippian well or an exempt	1085
domestic well cannot demonstrate financial responsibility to the	1086
satisfaction of the chief, the chief shall order that the owner	1087
permittee to execute and file a surety bond or deposit cash,	1088
certificates of deposit, or irrevocable letters of credit as	1089
required by this section for the wells specified in the order	1090
within ten days of receipt of the order. If the order is not	1091
complied with, all wells of the ownerpermittee that are	1092
specified in the order and for which no surety bond is filed or	1093
cash, certificates of deposit, or letters of credit are deposited	1094
shall be plugged. No ownerpermittee shall fail or refuse to plug	1095
such a well. Each day on which such a well remains unplugged	1096
thereafter constitutes a separate offense, and the chief shall	1097
assess a fine against the permittee in an amount that is not less	1098
than one thousand dollars per offense as determined by the chief.	1099

(D) A permittee shall file updates of any financial documents	1100
that are required by this section in accordance with a schedule	1101
established by rule of the chief.	1102

(E) The surety bond provided for in this section shall be	1103
executed by a surety company authorized to do business in this	1104
state that is in good standing.	1105

(F) The chief shall not approve any bond until it is	1106
personally signed and acknowledged by both principal and surety,	1107
or as to either by the principal's or surety's attorney in fact,	1108
with a certified copy of the power of attorney attached thereto.	1109
The chief shall not approve a bond unless there is attached a	1110
certificate of the superintendent of insurance that the company is	1111
authorized to transact a fidelity and surety business in this	1112
state.	1113

(G) All bonds shall be given in a form to be prescribed by	1114
the chief and shall run to the state as obligee.	1115

An owner of an exempt Mississippian well or an exempt	1116
domestic well, in lieu of filing a surety bond, cash in an amount	1117
equal to the surety bond, certificates of deposit, irrevocable	1118
letters of credit, or a sworn financial statement, may file a	1119
one-time fee of fifty dollars, which shall be deposited in the oil	1120
and gas well plugging fund created in section 1509.071 of the	1121
Revised Code.	1122

Sec. 1509.071.  (A) When the chief of the division of mineral	1123
resources management finds that an ownera permittee has failed to	1124
comply with the restoration requirements of section 1509.072,	1125
plugging requirements of section 1509.12, or permit provisions of	1126
section 1509.13 of the Revised Code, or rules and orders relating	1127
thereto, the chief shall make a finding of that fact and declare	1128
any surety bond filed to ensure compliance with those sections and	1129
rules forfeited in the amount set by rule of the chief. The chief	1130
thereupon shall certify the total forfeiture to the attorney	1131
general, who shall proceed to collect the amount of the	1132
forfeiture. In addition, the chief may require a permittee,	1133
operator, producer, or other person who forfeited a surety bond to	1134
post a new surety bond in the amount of fifteen thousand dollars	1135
for a single well, thirty thousand dollars for two wells, or fifty	1136
thousand dollars for three or more wells.	1137

In lieu of total forfeiture, the surety, at its option, may	1138
cause the well to be properly plugged and abandoned and the area	1139
properly restored or pay to the treasurer of state the cost of	1140
plugging and abandonment. The cost of plugging and abandonment of	1141
the well includes the estimated cost of maintaining the well in a	1142
safe condition that complies with rules governing plugging.	1143

(B) All moneys collected because of forfeitures of bonds as	1144
provided in this section shall be deposited in the state treasury	1145
to the credit of the oil and gas well fund created in section	1146
1509.02 of the Revised Code. The fund shall be expended by the	1147
chief for the following purposes in addition to the other purposes	1148
specified in that section:	1149

(1) In accordance with division (D) of this section, to plug	1150
idle and orphaned wells or to restore the land surface properly as	1151
required in section 1509.072 of the Revised Code for which the	1152
bonds have been forfeited, for abandoned wellsor for plugging and	1153
maintaining abandoned wells for which no funds are available to	1154
plug the wells in accordance with this chapter, or to use	1155
abandoned wells for the injection of oil or gas production wastes;	1156

(2) In accordance with division (E) of this section, to	1157
correct conditions that the chief reasonably has determined are	1158
causing imminentimmediate health or safety risks at an idle and	1159
orphaned well or a well for which the person responsible for the	1160
well cannot be contacted in order to initiate a corrective action	1161
within a reasonable period of time as determined by the chief.	1162

Expenditures from the fund shall be made only for lawful	1163
purposes.	1164

(C)(1) Upon determining that the ownerpermittee of a well	1165
has failed to properly plug and abandon it or to properly restore	1166
the land surface at the well site in compliance with the	1167
applicable requirements of this chapter and applicable rules	1168
adopted and orders issued under it or that a well is an abandoned	1169
well for which no funds are available to plug the well in	1170
accordance with this chapter, the chief shall do allboth of the	1171
following:	1172

(a) Determine from the records in the office of the county	1173
recorder of the county in which the well is located the identity	1174
of the owner of the land on which the well is located, the	1175
identity of the ownerpermittee of the oil or gas lease under	1176
which the well was drilled or the identity of each person owning	1177
an interest inand, if different from the permittee, the present	1178
holder of the lease, and the identities of the persons having	1179
legal title to, or a lien upon, any of the equipment appurtenant	1180
to the well;	1181

(b) Mail notice to the owner of the land on which the well is	1182
located informing the landowner that the well is to be plugged. If	1183
the owner of the oil or gas lease under which the well was drilled	1184
is different from the owner of the well or if any persons other	1185
than the owner of the well own interests in the lease, the chief	1186
also shall mail notice that the well is to be plugged to the owner	1187
of the lease or to each person owning an interest in the lease, as	1188
appropriate.	1189

(c) Mail notice to each person having legal title to, or a	1190
lien upon, any equipment appurtenant to the well,identified under	1191
division (C)(1)(a) of this section informing the person that the	1192
well is to be plugged and offering the person the opportunity to	1193
plug the well and restore the land surface at the well site at the	1194
person's own expense in order to avoid fines, penalties, or	1195
forfeiture of the equipment to this state.	1196

(2) If none of the persons described in division (C)(1)(c)(a)	1197
of this section plugs the well within sixty days after the mailing	1198
of the notice required by that division (C)(1)(b) of this section,	1199
all equipment appurtenant to the well is hereby declared to be	1200
forfeited to this state without compensation and without the	1201
necessity for any action by the state for use to defray the cost	1202
of plugging and abandoning the well and restoring the land surface	1203
at the well site.	1204

(D) Expenditures from the fund for the purpose of division	1205
(B)(1) of this section shall be made in accordance with either of	1206
the following:	1207

(1) The expenditures may be made pursuant to contracts	1208
entered into by the chief with persons who agree to furnish all of	1209
the materials, equipment, work, and labor as specified and	1210
provided in such a contract for activities associated with the	1211
restoration or plugging of a well as determined by the chief. The	1212
activities may include excavation to uncover a well, geophysical	1213
methods to locate a buried well when clear evidence of leakage	1214
from the well exists, cleanout of wellbores to remove material	1215
from a failed plugging of a well, plugging operations,	1216
installation of vault and vent systems, including associated	1217
engineering certifications and permits, restoration of property,	1218
and repair of damage to property that is caused by such	1219
activities. However, expenditures shall not be made to purchase	1220
property or to remove a dwelling in order to access a well. Agents	1221
or employees of persons contracting with the chief for thea	1222
restoration,or plugging, and injection projectsproject may enter	1223
upon any land, public or private, on which the well is located for	1224
the purpose of performing the work. Prior to such entry, the chief	1225
shall give to the following persons written notice of the	1226
existence of a contract for a project to restore,or plug, or	1227
inject oil or gas production wastes into a well, the names of the	1228
persons with whom the contract is made, and the date that the	1229
project will commence: the owner of the well, the owner of the	1230
land upon which the well is located,each person identified under	1231
division (C)(1)(a) of this section; if different from the persons	1232
identified under that division, the owner or agents of adjoining	1233
land,; and, if the well is located in the same township as or in a	1234
township adjacent to the excavations and workings of a mine and	1235
the owner or lessee of that mine has provided written notice	1236
identifying those townships to the chief at any time during the	1237
immediately preceding three years, the owner or lessee of the	1238
mine. In addition, the chief shall notify the director of	1239
environmental protection of those activities in order to obtain	1240
the director's evaluation of any impact to the environment from	1241
the activities and the director's determination of compliance with	1242
state environmental laws.	1243

(2)(a) The owner of the land on which a well is located who	1244
has received notice under division (C)(1)(b) of this section may	1245
plug the well and be reimbursed by the division for the reasonable	1246
cost of plugging the well. In order to plug the well, the	1247
landowner shall submit an application to the chief on a form	1248
prescribed by the chief and approved by the technical advisory	1249
council on oil and gas created in section 1509.38 of the Revised	1250
Code. The application, at a minimum, shall require the landowner	1251
to provide the same information as is required to be included in	1252
the application for a permit to plug and abandon under section	1253
1509.13 of the Revised Code. The application shall be accompanied	1254
by a copy of a proposed contract to plug the well prepared by a	1255
contractor regularly engaged in the business of plugging oil and	1256
gas wells. The proposed contract shall require the contractor to	1257
furnish all of the materials, equipment, work, and labor necessary	1258
to plug the well properly and shall specify the price for doing	1259
the work, including a credit for the equipment appurtenant to the	1260
well that was forfeited to the state through the operation of	1261
division (C)(2) of this section. Expenditures under division	1262
(D)(2)(a) of this section shall be consistent with the	1263
expenditures for activities described in division (D)(1) of this	1264
section. The application also shall be accompanied by the permit	1265
fee required by section 1509.13 of the Revised Code unless the	1266
chief, in the chief's discretion, waives payment of the permit	1267
fee. The application constitutes an application for a permit to	1268
plug and abandon the well for the purposes of section 1509.13 of	1269
the Revised Code.	1270

(b) Within thirty days after receiving an application and	1271
accompanying proposed contract under division (D)(2)(a) of this	1272
section, the chief shall determine whether the plugging would	1273
comply with the applicable requirements of this chapter and	1274
applicable rules adopted and orders issued under it and whether	1275
the cost of the plugging under the proposed contract is	1276
reasonable. If the chief determines that the proposed plugging	1277
would comply with those requirements and that the proposed cost of	1278
the plugging is reasonable, the chief shall notify the landowner	1279
of that determination and issue to the landowner a permit to plug	1280
and abandon the well under section 1509.13 of the Revised Code.	1281
Upon approval of the application and proposed contract, the chief	1282
shall transfer ownership of the equipment appurtenant to the well	1283
to the landowner. The chief may disapprove an application	1284
submitted under division (D)(2)(a) of this section if the chief	1285
determines that the proposed plugging would not comply with the	1286
applicable requirements of this chapter and applicable rules	1287
adopted and orders issued under it, that the cost of the plugging	1288
under the proposed contract is unreasonable, or that the proposed	1289
contract is not a bona fide, arms length contract.	1290

(c) After receiving the chief's notice of the approval of the	1291
application and permit to plug and abandon a well under division	1292
(D)(2)(b) of this section, the landowner shall enter into the	1293
proposed contract to plug the well. The plugging shall be	1294
completed within one hundred eightsixty days after the landowner	1295
receives the notice of approval and permit.	1296

(d) Upon determining that the plugging has been completed	1297
within the time required by division (D)(2)(c) of this section and	1298
has been completed in compliance with the applicable requirements	1299
of this chapter and applicable rules adopted and orders issued	1300
under it, the chief shall reimburse the landowner for the cost of	1301
the plugging as set forth in the proposed contract approved by the	1302
chief. The reimbursement shall be paid from the oil and gas well	1303
fund. If the chief determines that the plugging was not completed	1304
within the required time or was not completed in accordance with	1305
the applicable requirements, the chief shall not reimburse the	1306
landowner for the cost of the plugging, and the landowner or the	1307
contractor, as applicable, promptly shall transfer back to this	1308
state title to and possession of the equipment appurtenant to the	1309
well that previously was transferred to the landowner under	1310
division (D)(2)(b) of this section. If any such equipment was	1311
removed from the well during the plugging and sold, the landowner	1312
shall pay to the chief the proceeds from the sale of the	1313
equipment, and the chief promptly shall pay the moneys so received	1314
to the treasurer of state for deposit into the oil and gas well	1315
fund.	1316

The chief may establish an annual limit on the number of	1317
wells that may be plugged under division (D)(2) of this section or	1318
an annual limit on the expenditures to be made under that division	1319
(D)(2) of this section.	1320

As used in division (D)(2) of this section, "plug" and	1321
"plugging" include the plugging of the well and the restoration of	1322
the land surface disturbed by the plugging.	1323

(E) Expenditures from the oil and gas well fund for the	1324
purpose of division (B)(2) of this section may be made pursuant to	1325
contracts entered into by the chief with persons who agree to	1326
furnish all of the materials, equipment, work, and labor as	1327
specified and provided in such a contract. However, expenditures	1328
shall not be authorized to purchase real property or to remove a	1329
dwelling. The competitive bidding requirements of Chapter 153. of	1330
the Revised Code do not apply if the chief reasonably determines	1331
that correction of the applicable health or safety risk requires	1332
immediate action. The chief, designated representatives of the	1333
chief, and agents or employees of persons contracting with the	1334
chief under this division may enter upon any land, public or	1335
private, for the purpose of performing the work.	1336

(F) Contracts entered into by the chief under this section	1337
are not subject to either of the following:	1338

(1) Chapter 4115. of the Revised Code;

1339

(2) Section 153.54 of the Revised Code, except that the	1340
contractor shall obtain and provide to the chief as a bid guaranty	1341
a surety bond or letter of credit in an amount equal to ten per	1342
cent of the amount of the contract.	1343

(G) The owner of land on which a well is located who has	1344
received notice under division (C)(1)(b) of this section, in lieu	1345
of plugging the well in accordance with division (D)(2) of this	1346
section, may cause ownership of the well to be transferred to an	1347
ownera permittee who is lawfully doing business in this state and	1348
who has met the financial responsibility requirements established	1349
under section 1509.07 of the Revised Code, subject to the approval	1350
of the chief. The transfer of ownership also shall be subject to	1351
the landowner's filing the appropriate forms required under this	1352
chapter and providing to the chief sufficient information to	1353
demonstrate the landowner's or owner'spermittee's right to	1354
produce a formation or formations. That information may include a	1355
deed, a lease, or other documentation of ownership or property	1356
rights.	1357

The chief shall approve or disapprove the transfer of	1358
ownership of the well. If the chief approves the transfer, the	1359
ownerpermittee is responsible for operating the well in	1360
accordance with this chapter and rules adopted under it,	1361
including, without limitation, all of the following:	1362

(1) Filing an application with the chief under section	1363
1509.06 of the Revised Code if the ownerpermittee intends to	1364
drill deeper or produce a formation that is not listed in the	1365
records of the division for that well;	1366

(2) Taking title to and possession of the equipment	1367
appurtenant to the well that has been identified by the chief as	1368
having been abandoned by the former owner or permittee;	1369

(3) Complying with all applicable requirements that are	1370
necessary to drill deeper, plug the well, or plug back the well.	1371

(H) The chief shall issue an order that requires the	1372
responsible person of a well to pay the actual documented costs of	1373
a corrective action that is described in division (B)(2) of this	1374
section concerning the well. The chief shall transmit the money so	1375
recovered to the treasurer of state who shall deposit the money in	1376
the state treasury to the credit of the oil and gas fund.	1377

Sec. 1509.072.  No oil or gas well ownerpermittee or agent	1378
of an oil or gas well ownerpermittee shall fail to restore the	1379
land surface within the area disturbed in siting, drilling,	1380
completing, and producing, plugging, and abandoning the well as	1381
required in this section.	1382

(A) Within five monthsfourteen days after the date upon	1383
which the surface drilling of a well is commencedcompleted to	1384
total depth in an urbanized area and within one month after the	1385
date upon which the drilling of a well is completed in all other	1386
areas, the ownerpermittee or the owner'spermittee's agent, in	1387
accordance with the restoration plan filed under division	1388
(A)(10)(11) of section 1509.06 of the Revised Code, shall fill	1389
with clean fill all the pits for containing brine,and other	1390
waste substances resulting, obtained, or produced in connection	1391
with exploration or drilling for, or production of, oil or gas, or	1392
oil that are not required by other state or federal law or	1393
regulation, and remove all concrete bases, drilling supplies, and	1394
drilling equipment. Within nine monthsIn addition, the permittee	1395
or the permittee's agent shall remove all cuttings containing	1396
brine and all other waste substances and dispose of the cuttings	1397
and other waste substances in an appropriate facility licensed	1398
under Chapter 3734. of the Revised Code or dispose of such	1399
cuttings and waste substances in accordance with all applicable	1400
statutes and rules governing environmental protection. Unless the	1401
chief of the division of mineral resources management approves a	1402
longer time period, within one month after the date upon which the	1403
surface drilling of a well is commenced in an urbanized area and	1404
within two months after the date upon which the surface drilling	1405
of a well is commenced in all other areas, the ownerpermittee or	1406
the owner'spermittee's agent shall begin to grade or terrace and	1407
plant, seed, or sod the area disturbed that is not required in	1408
production of the well where necessary to bind the soil and	1409
prevent substantial erosion and sedimentation. If the chief of the	1410
division of mineral resources management finds that a pit used for	1411
containing brine, other waste substances, or oil is in violation	1412
of section 1509.22 of the Revised Code or rules adopted or orders	1413
issued under it, the chief may require the pit to be emptied and	1414
closed before expiration of the five-monthapplicable restoration	1415
period.	1416

(B) Within six monthsthirty days after a well that has	1417
produced oil or gas is plugged, or after the plugging of a dry	1418
hole, unless the chief approves a longer time period not to exceed	1419
six months, the ownerpermittee or the owner'spermittee's agent	1420
shall remove all production and storage structures, supplies, and	1421
equipment, and any oil, salt water, and debris, and fill any	1422
remaining excavations. Within that periodfourteen days after	1423
removal of such structures, supplies, equipment, oil, salt water,	1424
and debris and filling of such excavations, the ownerpermittee	1425
or the owner'spermittee's agent shall grade or terrace and plant,	1426
seed, or sod the area disturbed where necessary to bind the soil	1427
and prevent substantial erosion and sedimentation.	1428

The ownerpermittee shall not be released from responsibility	1429
to perform any or all restoration requirements of this section on	1430
any part or all of the area disturbed upon the filing of a request	1431
for a waiver with and obtaining the written approval of the chief,	1432
whichunless the request shall beis signed by the surface owner	1433
to certify that the approval of the surface owner of the release	1434
soughtwill undertake all of the responsibilities of the permittee	1435
to perform any or all of the restoration requirements established	1436
in this section. The chief shall approve the request unless the	1437
chief finds upon inspection that the waiver would be likely to	1438
result in substantial damage to adjoining property, substantial	1439
contamination of surface or underground water, or substantial	1440
erosion or sedimentationonly if the surface owner executes and	1441
files a surety bond with the division of mineral resources	1442
management in an amount equal to the estimated cost to plug the	1443
well and restore the site in accordance with the requirements	1444
established in this chapter and rules adopted under it.	1445

The chief, by order, may shorten the time periods provided	1446
for under division (A) or (B) of this section if failure to	1447
shorten the periods would be likely to result in damage to public	1448
health or the waters or natural resources of the state.	1449

The chief, upon written application by an ownera permittee	1450
or an owner'sa permittee's agent showing reasonable cause, may	1451
extend the period within which restoration shall be completed	1452
under divisions (A) and (B) of this section, but not to exceed a	1453
further six-month period, except under extraordinarily adverse	1454
weather conditions or when essential equipment, fuel, or labor is	1455
unavailable to the ownerpermittee or the owner'spermittee's	1456
agent.	1457

If the chief refuses to approve a request for waiver or	1458
extension, the chief shall do so by order.	1459

Sec. 1509.073.  (A) In addition to the requirements	1460
established in section 1509.04 of the Revised Code, the chief of	1461
the division of mineral resources management shall coordinate with	1462
local inspectors in the enforcement of this chapter and rules	1463
adopted under it. A local inspector may inspect an oil or gas well	1464
and the storage facilities of a well at any time in order to	1465
ensure compliance with local zoning or building codes. In	1466
addition, the chief of the fire department within whose	1467
jurisdiction an oil or gas well is located may inspect the well to	1468
ensure compliance with the fire code of the municipal corporation	1469
or township, as applicable.	1470

(B) If a local inspector or chief of an applicable fire	1471
department discovers a violation of a permit issued under this	1472
chapter, the inspector or chief shall notify the chief of the	1473
division of mineral resources management or a mineral resources	1474
inspector within twenty-four hours of the discovery.	1475

(C) A permittee annually shall pay to a municipal corporation	1476
or township, as applicable, a fee of five hundred dollars for each	1477
of the permittee's wells that is located within the territorial	1478
boundaries of the municipal corporation or township. The fee shall	1479
be deposited in a special fund that is established by the	1480
municipal corporation or township. The money in the fund shall be	1481
used by the municipal corporation or township to pay the costs of	1482
training police, fire, and medical personnel to respond to	1483
well-related emergencies in the municipal corporation or township,	1484
to pay the costs of periodic inspections by a local inspector to	1485
ensure proper maintenance of all well-related facilities, and to	1486
pay the costs of inspections by local inspectors of the site where	1487
the surface facilities of a well are located to ensure compliance	1488
with local zoning or building codes.	1489

Sec. 1509.074.  A person that is issued a permit to drill a	1490
well under this chapter shall do all of the following:	1491

(A) Prior to commencing drilling, meet with the chief of the	1492
fire department within whose jurisdiction the well is located to	1493
explain the drilling operation, including any potential problems	1494
or concerns and solutions to those problems or concerns, and to	1495
provide a schedule of the drilling;	1496

(B) Grant a right of entry to an authorized representative of	1497
the fire department within whose jurisdiction the well is located	1498
for the purpose of formulating emergency operating procedures;	1499

(C) Ensure the availability of a gas well technician who has	1500
knowledge of the mitigation of hazardous or emergency conditions	1501
at a well location. The permittee shall ensure that a gas well	1502
technician responds to a hazardous or emergency condition at the	1503
well within thirty minutes of the permittee's receipt of	1504
notification that a hazardous or emergency condition exists at the	1505
well location. In addition, the permittee shall provide to each	1506
technician the necessary tools and testing equipment that normally	1507
are required to determine the location and nature of a hazardous	1508
or emergency condition, to complete repairs, or to shut off a well	1509
if necessary.	1510

(D) Develop a monthly and an annual safety inspection	1511
checklist that shall be used for each monthly and annual	1512
inspection of each well head and tank battery;	1513

(E) Inspect monthly and annually each well head and tank	1514
battery using the applicable checklist that is developed under	1515
division (D) of this section and submit a copy of the checklist	1516
monthly or annually, as applicable, to the chief of the fire	1517
department within whose jurisdiction the well is located;	1518

(F) Provide to the chief of the fire department within whose	1519
jurisdiction the well is located all information concerning	1520
inspections, investigations, and repairs that are performed at the	1521
well location after the occurrence of a hazardous or emergency	1522
condition at the well.	1523

Sec. 1509.075. (A) A person that is issued a permit to drill	1524
a well under this chapter, prior to commencing drilling	1525
operations, shall execute and file with the legislative authority	1526
of a municipal corporation or the board of township trustees of a	1527
township, as applicable, a surety bond for each of the permittee's	1528
wells that is located within the territorial boundaries of the	1529
municipal corporation or township. The surety bond shall be	1530
conditioned on compliance with the terms and conditions of the	1531
permit and with all of the applicable laws and rules enacted or	1532
adopted by the municipal corporation or township and shall provide	1533
coverage for damage to municipal corporation or township roads	1534
caused by vehicles associated with the drilling of the well, the	1535
cleanup of mud and drilling refuse from public property, and the	1536
cost of water testing conducted within six months of the drilling	1537
of the well. The amount of the surety bond shall be established by	1538
the legislative authority of the municipal corporation or the	1539
board of township trustees of the township, as applicable, but	1540
shall not be less than one hundred per cent of the estimated cost	1541
of the screening and landscaping requirements established in this	1542
chapter and rules adopted under it.	1543

In lieu of a surety bond, the permittee may deposit with the	1544
legislative authority of the municipal corporation or the board of	1545
township trustees of the township cash in an amount equal to the	1546
surety bond established under this section or certificates of	1547
deposit having a cash value equal to or greater than that amount.	1548

(B) Upon completion of the installation of the well, the	1549
permittee shall notify the applicable local inspector. Not later	1550
than five days after receipt of the notification, the local	1551
inspector shall inspect the surface location of the well and	1552
determine if the installation of the well complies with the terms	1553
and conditions of the permit and with laws and rules of the	1554
applicable municipal corporation or township. If the inspector	1555
determines that the well complies with those terms and conditions	1556
and laws and rules, the inspector shall notify the permittee and	1557
the legislative authority of the municipal corporation or the	1558
board of township trustees of the township, as applicable, and the	1559
legislative authority or board shall release the surety bond or	1560
other financial security to the permittee.	1561

If the inspector determines that the well does not comply	1562
with the terms and conditions of the permit or with laws or rules	1563
of the applicable municipal corporation or township, the inspector	1564
shall notify the permittee and the applicable legislative	1565
authority or board and specifically describe the reasons for	1566
noncompliance. The permittee may take actions that are necessary	1567
to bring the installation of the well into compliance. Following	1568
the completion of those actions, the permittee shall notify the	1569
applicable local inspector who shall conduct a second inspection	1570
of the surface location of the well. If the inspector determines	1571
that the well complies with the terms and conditions of the permit	1572
and with laws and rules of the applicable municipal corporation or	1573
township, the inspector shall notify the permittee and the	1574
legislative authority of the municipal corporation or the board of	1575
township trustees of the township, as applicable, and the	1576
legislative authority or board shall release the surety bond or	1577
other financial security to the permittee.	1578

If the inspector again determines that the well does not	1579
comply with the terms and conditions of the permit or with laws or	1580
rules of the applicable municipal corporation or township, the	1581
inspector shall notify the permittee and the applicable	1582
legislative authority or board. The legislative authority or board	1583
shall not release the surety bond or other financial security to	1584
the permittee.	1585

Sec. 1509.076. On and after the effective date of this	1586
section, a person that is issued a permit to drill a well under	1587
this chapter shall do all of the following:	1588

(A) Post a sign prior to the commencement of the drilling of	1589
a well. The sign shall be permanent and weatherproof and	1590
maintained at all times. In addition, the sign shall consist of	1591
letters and numerals that are at least five inches in height and	1592
shall contain all of the following:	1593

(1) The number and name of the road that will be used to	1594
access the well site;	1595

(2) The number of the well and of the permit for the well;

1596

(3) The name, address, and telephone number of the permittee	1597
or a representative of the permittee who may be contacted and	1598
available in the event of an emergency.	1599

(B) Implement a monitoring system at a new or existing oil or	1600
gas well for the detection of a leak of natural gas, hydrogen	1601
sulfide, or radon, a spill of a toxic chemical, or an explosion.	1602
The monitoring system shall have an audible alarm to warn the	1603
workers at the surface location of the well and the public of such	1604
a leak, spill, or explosion. The monitoring system also shall	1605
notify the fire department within whose jurisdiction the well will	1606
be or is located of such a leak, spill, or explosion. In addition,	1607
the monitoring system and alarm shall be operable during power	1608
failures and during the drilling of and production from a well	1609
until the well is abandoned and plugged.	1610

(C) Conduct all operations in a manner that eliminates, as	1611
far as practical, dust, noise, vibrations, and noxious odors. In	1612
addition, a permittee shall not allow the noise from the drilling	1613
operation to exceed eighty decibels if the well is located within	1614
five hundred feet of an occupied dwelling, a multiple unit	1615
dwelling with at least three units, a hospital as defined in	1616
section 3727.01 of the Revised Code, or a home as defined in	1617
section 3721.01 of the Revised Code.	1618

(D) Use only fluid during the drilling of a well that is	1619
located in an area that is zoned residential or is otherwise a	1620
residential area in order to minimize flaring. In addition, if a	1621
permittee drills the well at night in an area that is zoned	1622
residential or is otherwise a residential area, the permittee	1623
shall use only the amount of light that is necessary for	1624
conducting a safe operation.	1625

(E) Operate a drilling rig between the hours of seven-thirty	1626
a.m. and seven p.m. unless all owners of property that is located	1627
within one thousand feet of the location of the well consent in	1628
writing to the drilling of the well during other hours;	1629

(F) Detonate explosives between the hours of seven-thirty	1630
a.m. and seven p.m. unless the chief of the fire department within	1631
whose jurisdiction the well is located authorizes the detonation	1632
of explosives during other hours;	1633

(G) Store all flammable and combustible liquids from a	1634
producing well in underground tanks;	1635

(H) Remove all liquids from a well tank using a tank truck;

1636

(I) Keep the areas within fifteen feet of all permanent	1637
production facilities mowed and cleared of combustible materials.	1638
In addition, those areas shall be enclosed with fencing that is	1639
not less than six feet in height.	1640

(J) Paint shut-off valves in a conspicuous color for ease of	1641
identification in emergencies;	1642

(K) Install latches on well head and tank battery enclosures	1643
to hold the enclosures open;	1644

(L) Lock all gates, storage tank manholes, discharge valves,	1645
fill valves, shut-off valves, and fence gates. All locks at a well	1646
shall use a master key that is marked with the well number. In	1647
addition, a permittee shall provide a copy of the master key for	1648
each well to a local inspector, the chief of the fire department	1649
within whose jurisdiction the well is located, and the applicable	1650
chief of police or sheriff.	1651

(M) Bury all new oil and gas lines a minimum depth of thirty	1652
inches. In addition, a permittee shall indicate the location of	1653
those oil and gas lines on a map and provide a copy of the map to	1654
the local inspector and to the chief of the fire department within	1655
whose jurisdiction the lines are located.	1656

(N) Equip each permanent production structure, including, but	1657
not limited to, a separator unit and a storage tank, with properly	1658
grounded lightning rods;	1659

(O) Provide for a drilling-in control gate in the drilling of	1660
a well or in the cleaning of an abandoned well in preparation for	1661
the plugging of the abandoned well. The drilling-in control gate	1662
shall be constructed in a manner that will cut off the flow of gas	1663
to the top of the well and that will allow the gate to be operated	1664
at a remote location from the well.	1665

(P) Vent a plugged well with a vent pipe that is not less	1666
than two inches in diameter and of a height that is determined by	1667
the chief of the division of mineral resources management in	1668
consultation with the applicable fire chief and local inspector.	1669
In addition, the vent pipe shall have a drilled and tapped	1670
inspection hold with a hole plug that is not less than one-half	1671
inch in diameter and that is not more than four feet above grade.	1672

(Q) Locate a new well head, tank battery, and storage tank in	1673
accordance with all of the following:	1674

(1) At least one thousand feet from a single or multiple	1675
family dwelling, hospital as defined in section 3727.01 of the	1676
Revised Code, clinic, home as defined in section 3721.01 of the	1677
Revised Code, school, day-care, playground, auditorium, theater,	1678
library, shopping center, place of worship, or any other building	1679
used as a place for public assembly;	1680

(2) At least two thousand feet from a lake, stream, river, or	1681
other large body of water;	1682

(3) At least one thousand feet from a public right-of-way.

1683

(R) Paint a storage tank and other equipment that is located	1684
above ground shades of dark green in order to minimize the visual	1685
obtrusiveness of the equipment. In addition, a permittee shall	1686
identify the contents of a storage tank using eight-inch letters	1687
on the outside of the tank in a color that is distinct from the	1688
tank color.	1689

(S) Use a storage tank if a well is located on a steep slope	1690
or within a floodplain;	1691

(T) Anchor a storage tank in a permanent manner in order to	1692
prevent movement of the tank;	1693

(U) Use only a water-tight storage tank;

1694

(V) Use only an electrically powered pump jack;

1695

(W) Permanently mark all sales lines from a tank battery at	1696
intervals of not more than two hundred feet;	1697

(X) Install a brine tank not higher than eight feet above	1698
grade. A permittee may recess a brine tank below grade in order to	1699
comply with this division.	1700

(Y) Maintain all equipment that is or is to be used at a well	1701
and all equipment at the surface location of a well in good	1702
operating condition according to best management practices that	1703
are recognized by the oil and gas industry;	1704

(Z) Provide access roads to the surface location of a well in	1705
order for emergency responders to be able to access the location	1706
in an emergency. The roads used for ingress and egress to the	1707
surface location of a well shall be made of concrete or asphalt	1708
and shall be of sufficient width to enable emergency vehicles to	1709
turn around. In addition, a permittee shall maintain the roads at	1710
all times, including keeping the roads free of snow. If an access	1711
road crosses a drainage channel, a permittee shall install	1712
culverts, which shall be of a size that is appropriate for the	1713
drainage area and shall be approved by the municipal engineer or	1714
county engineer, as applicable, prior to the installation of the	1715
culverts.	1716

(AA) Locate a truck loading area or parking area in a	1717
location that is not on an access road to the surface location of	1718
a well and that is not on a public right-of-way;	1719

(BB) Remove immediately from a municipal or township road all	1720
debris resulting from the drilling of or production from a well.	1721

Sec. 1509.08.  Upon receipt of an application for a permit	1722
required by section 1509.05 of the Revised Code, or upon receipt	1723
of an application for a permit to plug and abandon under section	1724
1509.13 of the Revised Code, the chief of the division of mineral	1725
resources management shall determine whether the well is or is to	1726
be located in a coal bearing township.	1727

Whether or not the well is or is to be located in a coal	1728
bearing township, the chief, by order, may refuse to issue a	1729
permit required by section 1509.05 of the Revised Code to any	1730
applicant who at the time of applying for the permit is in	1731
material orand substantial violation of this chapter or rules	1732
adopted or orders issued under it. The chief shall refuse to issue	1733
a permit to any applicant who at the time of applying for the	1734
permit has been found liable by a final nonappealable order of a	1735
court of competent jurisdiction for damage to streets, roads,	1736
highways, bridges, culverts, or drainways pursuant to section	1737
4513.34 or 5577.12 of the Revised Code until the applicant	1738
provides the chief with evidence of compliance with the order. No	1739
applicant shall attempt to circumvent this provision by applying	1740
for a permit under a different name or business organization name,	1741
by transferring responsibility to another person or entity, by	1742
abandoning the well or lease, or by any other similar act.	1743

If the well is not or is not to be located in a coal bearing	1744
township, or if it is to be located in a coal bearing township,	1745
but the landowner submits an affidavit attesting to ownership of	1746
the property in fee simple, including the coal, and has no	1747
objection to the well, the chief shallmay issue the permit in	1748
accordance with this chapter and rules adopted under it.	1749

If the application to drill, reopen, or convert concerns a	1750
well that is or is to be located in a coal bearing township, the	1751
chief immediately shall notify the owner or lessee of any affected	1752
mine that the application has been filed and send to the owner or	1753
lessee two copies of the map accompanying the application setting	1754
forth the location of the well. The chief also immediately shall	1755
send notice and a copy of the application to all of the following:	1756
the clerk of the legislative authority of the municipal	1757
corporation or the clerk of the board of the township trustees of	1758
the township, as applicable, in which the well is or is to be	1759
located; the fire chief of the fire department within whose	1760
jurisdiction the well is or is to be located; and the director of	1761
environmental protection. The notice sent to the applicable fire	1762
chief shall request that the fire chief determine if there would	1763
be adverse effects from the well or proposed well to the health	1764
and safety of persons residing in the municipal corporation or	1765
township, as applicable. The notice sent to the director shall	1766
request that the director determine if the well or proposed well	1767
would violate applicable air, soil, or water pollution control	1768
standards.	1769

If the owner or lessee of the mine, the applicable fire	1770
chief, or the director objects to the location of the well or	1771
objects to any location within fifty feet of the original location	1772
as a possible site for relocation of the well, the owner or	1773
lessee, the applicable fire chief, or the director, not later than	1774
twenty-two days after receipt of the notice of the filing of the	1775
application, shall notify the chief of the objection, giving the	1776
reasons for the objection and, if applicable, indicating on a copy	1777
of the map the particular location or locations within fifty feet	1778
of the original location to which the owner or lessee objects as a	1779
site for possible relocation of the well, within six days after	1780
the receipt of the notice. If	1781

If either the applicable fire chief or the director objects	1782
to the application, the chief shall not approve the application	1783
until the fire chief sends a letter to the chief that withdraws	1784
the fire chief's objections or the director issues an opinion that	1785
recommends that the application be approved. The objection to the	1786
application by the applicable fire chief or the director shall	1787
stay the application pending the withdrawal of the objection.	1788

If the chief receives no objections from the owner or lessee	1789
of the mine within ten days after the receipt of the notice by the	1790
owner or lessee, or if in the opinion of the chief the objections	1791
offered by the owner or lessee are not sufficiently well founded,	1792
the applicable fire chief, or the director, the chief immediately	1793
shall notify the owner or lessee of those findingsmay approve the	1794
application and issue the permit in accordance with this chapter	1795
and rules adopted under it. TheIf the chief denies the	1796
application, the owner or lessee of the mine may appeal the	1797
decision of the chief to the reclamation commission under section	1798
1513.13 of the Revised Code. The appeal shall be filed within	1799
fifteen days, notwithstanding provisions in divisions (A)(1) of	1800
section 1513.13 of the Revised Code, to the contrary, from the	1801
date on which the owner or lessee receives the notice. If the	1802
appeal is not filed within that time, the chief immediately shall	1803
approve the application and issue the permit if the provisions of	1804
this chapter pertaining to the issuance of such a permit have been	1805
complied with.	1806

If the chief receives an objection from the owner or lessee	1807
of the mine as to the location of the well within ten days after	1808
receipt of the notice by the owner or lessee, and if in the	1809
opinion of the chief the objection is well founded, the chief	1810
shall disapprove the application and request the owner or lessee	1811
to suggest a new proposed location for the well, provided that the	1812
suggested new location shall not be a location within fifty feet	1813
of the original location to which the owner or lessee has objected	1814
as a site for possible relocation of the well if the chief has	1815
determined that the objection is well founded. The chief	1816
immediately shall notify the applicant for the permit of the	1817
disapproval and any suggestion as to a new proposed location for	1818
the well. The applicant may withdraw the application or amend the	1819
application to drill the well at the location suggested by the	1820
chief, or the applicant may appeal the disapproval of the	1821
application by the chief to the reclamation commission.	1822

If the chief receives no objection from the owner or lessee	1823
of a mine as to the location of the wellapplicable fire chief or	1824
the director or an objection from the applicable fire chief or the	1825
director is withdrawn, but does receivethe chief receives an	1826
objection from the owner or lessee of an affected mine as to one	1827
or more locations within fifty feet of the original location as	1828
possible sites for relocation of the well within ten days after	1829
receipt of the notice by the owner or lessee, and if in the	1830
opinion of the chief the objection is well foundedthe location of	1831
the well, the chief nevertheless shall not approve the application	1832
and issue a permit if the provisions of this chapter pertaining to	1833
the issuance of such a permit have been complied with,	1834
incorporating as a term or condition of the permit that the	1835
applicant is prohibited from commencing drilling at any location	1836
within fifty feet of the original location that has been	1837
disapproved by the chief. The applicant may appeal to the	1838
reclamation commission the terms and conditions of the permit	1839
prohibiting the commencement of drilling at any such location	1840
disapproved by the chiefunless the owner or lessee of the	1841
affected mine withdraws the objection. The chief immediately shall	1842
notify the applicant of the objection. Not later than sixty days	1843
after receipt of the notification, the applicant shall amend or	1844
withdraw the application. The chief shall not approve an	1845
application or amended application unless the objection is	1846
withdrawn.	1847

Any such appeal shall be filed within fifteen days,	1848
notwithstanding provisions in division (A)(1) of section 1513.13	1849
of the Revised Code to the contrary, from the date the applicant	1850
receives notice of the disapproval of the application, any other	1851
location within fifty feet of the original location, or terms or	1852
conditions of the permit, or the owner or lessee receives notice	1853
of the chief's decision. No approval or disapproval of an	1854
application shall be delayed by the chief for more than fifteen	1855
days from the date of sending the notice of the application to the	1856
mine owner or lessee as required by this section.	1857

All appeals provided for in this section shall be treated as	1858
expedited appeals. The reclamation commission shall hear any such	1859
appeal in accordance with section 1513.13 of the Revised Code and	1860
issue a decision within thirty days of the filing of the notice of	1861
appeal.	1862

The chief shall not issue a permit to drill a new well or	1863
reopen a well that is or is to be located within three hundredone	1864
thousand feet of any opening of any mine used as a means of	1865
ingress, egress, or ventilation for persons employed in the mine,	1866
nor within one hundredthousand feet of any building or	1867
inflammable structure connected with the mine and actually used as	1868
a part of the operating equipment of the mine, unless the chief	1869
determines that life or property will not be endangered by	1870
drilling and operating the well in that location.	1871

Sec. 1509.081.  (A) If a proposed well will be drilled within	1872
a one-mile radius of an existing well that was drilled into or	1873
through the same geologic formation in which the proposed well	1874
will be drilled and if hydrogen sulfide was found in the drilling	1875
of the existing well, the permittee shall install monitoring	1876
equipment in accordance with the American petroleum institute	1877
publication API RP49, "Recommended Practices for Safe Drilling of	1878
Wells Containing Hydrogen Sulfide," to detect the presence of	1879
hydrogen sulfide during the drilling of the proposed well.	1880

(B) If during the drilling of a well a permittee discovers,	1881
detects, or encounters hydrogen sulfide with a concentration of	1882
twenty parts per million or greater, the permittee shall do all of	1883
the following:	1884

(1) Drill the well in accordance with the American petroleum	1885
institute publication API RP49, "Recommended Practices for Safe	1886
Drilling of Wells Containing Hydrogen Sulfide";	1887

(2) Notify the division of mineral resources management of	1888
the location of the well and the concentration of hydrogen	1889
sulfide;	1890

(3) Operate the well in a manner that presents no danger to	1891
the health and safety of the public and the environment.	1892

(C) The division shall maintain a database that contains the	1893
information required in division (B)(2) of this section. The	1894
division shall make the database available to all permittees.	1895

Sec. 1509.09.  A well may be drilled under a permit only at	1896
the location designated on the map required in section 1509.06 of	1897
the Revised Code. TheExcept as provided in this section, the	1898
location of a well mayshall not be changed after the issuance of	1899
a permit only with the approval of the chief of the division of	1900
mineral resources management unless the permit holder requests the	1901
issuance of an emergency drilling permit under this section due to	1902
a lost hole under such circumstances that completion of the well	1903
is not feasible at the original location. If a permit holder	1904
permittee requests a change of location, the permit holder	1905
permittee shall return the original permit and file an amended	1906
application with a new map indicating the proposed new location.	1907

Drilling shall not be commenced at a new location until the	1908
original permit bearing a notation of approval by the chief is	1909
posted at the well site. However, a permit holder may commence	1910
drilling at a new location without first receiving the prior	1911
approval required by this section, if all of the following	1912
conditions are met:	1913

(A) Within one working day after spudding the new well, the	1914
permit holder files a request for an emergency drilling permit and	1915
submits to the chief an application for a permit that meets the	1916
requirements of section 1509.06 of the Revised Code, including the	1917
permit fee required by that section, with an amended map showing	1918
the new location;	1919

(B) A mineral resources inspector is present before spudding	1920
operations are commenced at the location;	1921

(C) The original well is plugged prior to the skidding of the	1922
drilling rig to the new location, and the plugging is witnessed or	1923
verified by a mineral resources inspector or, if the well is	1924
located in a coal bearing township, both a deputy mine inspector	1925
and a mineral resources inspector unless the chief or the chief's	1926
authorized representative temporarily waives the requirement, but	1927
in any event the original well shall be plugged before the	1928
drilling rig is moved from the location;	1929

(D) The new location is within fifty feet of the original	1930
location unless, upon request of the permit holder, the chief	1931
agrees to a new location farther than fifty feet from the original	1932
location;	1933

(E) The new location meets all the distance and spacing	1934
requirements prescribed by rules adopted under sections 1509.23	1935
and 1509.24 of the Revised Code;	1936

(F) If the well is located in a coal bearing township, use of	1937
the new well location has not been disapproved by the chief and	1938
has not been prohibited as a term or condition of the permit under	1939
section 1509.08 of the Revised Code.	1940

If the chief approves the change of location, the chief shall	1941
issue an emergency permit within two working days after the filing	1942
of the request for the emergency permit. If the chief disapproves	1943
the change of location, the chief shall, by order, deny the	1944
request and may issue an appropriate enforcement order under	1945
section 1509.03 of the Revised Code.	1946

Sec. 1509.10. (A) Any personpermittee drilling within the	1947
state shall, within thirtysixty days after the completion of the	1948
welldrilling operations to the proposed total depth or after a	1949
determination that a well is a dry or lost hole, file with the	1950
division of mineral resources management all wireline electric	1951
logs and an accurate log designatingwell completion record on a	1952
form that is approved by the chief of the division of mineral	1953
resources management that designates:	1954

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

1955

(B)(2) The character, depth, and thickness of geological	1956
formationsunits encountered, including fresh water, coal seams,	1957
mineral beds, associated fluids such as fresh water, brine, and	1958
crude oil and, natural gas bearing formations, and sour gas, if	1959
such seams, beds, or fluids are known;	1960

(C)(3) The dates on which drilling operations were commenced	1961
and completed;	1962

(4) The types of drilling tools used and the name of the	1963
person that drilled the well;	1964

(5) The length in feet of the various sizes of casing and	1965
tubing used in drilling the well, the amount removed after	1966
completion, the type and setting depth of each packer, and all	1967
other data relating to muddingcementing in the annular space	1968
behind such casing or tubing, and data indicating completion as a	1969
dry, gas, oil, combination oil and gas, brine injection, or	1970
artificial brine well or a stratigraphic test;	1971

(D)(6) The number of perforations in the casing and the	1972
intervals of the perforations;	1973

(7) The elevation above mean sea level of the point from	1974
which the depth measurements were made, stating also the height of	1975
the point above ground level at the well, the total depth of the	1976
well, and the deepest geological unit that was penetrated in the	1977
drilling of the well;	1978

(8) If applicable, the type, volume, and concentration of	1979
acid, and the date on which acid was used in acidizing the well;	1980

(9) If applicable, the type and volume of fluid used to	1981
stimulate the reservoir of the well, the reservoir breakdown	1982
pressure, the method used for the containment of fluids recovered	1983
from the fracturing of the well, the methods used for the	1984
containment of fluids when pulled from the wellbore from swabbing	1985
the well, the average pumping rate of the well, and the name of	1986
the person that performed the well stimulation. In addition, the	1987
permittee shall include a copy of the log from the stimulation of	1988
the well, a copy of the invoice for each of the procedures and	1989
methods described in division (A)(9) of this section that were	1990
used on a well, and a copy of the pumping pressure and rate	1991
graphs. However, the permittee may redact from the copy of each	1992
invoice that is required to be included by division (A)(9) of this	1993
section the costs of and charges for the procedures and methods	1994
described in division (A)(9) of this section that were used on a	1995
well.	1996

(10) The name of the company that performed the logging of	1997
the well and the types of wireline electric logs performed on the	1998
well.	1999

The logwell completion record shall be submitted in	2000
duplicate. The first copy shall be retained as a permanent record	2001
in the files of the division, and the second copy shall be	2002
transmitted by the chief of the division of mineral resources	2003
management to the division of geological survey.	2004

Any(B)(1) Not later than sixty days after the completion of	2005
the drilling operations to the proposed total depth, the permittee	2006
shall file all wireline electric log, or radioactivity log, or	2007
other geophysical log, if made in connection with the well shall	2008
be filedlogs with the division of mineral resources management	2009
and the chief shall transmit such logs electronically, if	2010
available, to the division of geological survey. Such logs may be	2011
retained by the ownerpermittee for a period of not more than six	2012
months, or such additional time as may be granted by the chief in	2013
writing, after the completion of the well substantially to the	2014
depth shown in the application required by section 1509.06 of the	2015
Revised Code.	2016

(2) If a well is not completed within sixty days after the	2017
completion of drilling operations, the permittee shall file with	2018
the division a supplemental well completion record that includes	2019
all of the information required by this section within sixty days	2020
after the completion of the well.	2021

(C) Upon request in writing by the chief of the division of	2022
geological survey prior to the beginning of drilling of the well,	2023
the person drilling the well shall make available a complete set	2024
of cuttings accurately identified as to depth.	2025

(D) The form of the logwell completion record required by	2026
this section shall be one that has been approved by the chief of	2027
the division of mineral resources management and the chief of the	2028
division of geological survey. The filing of a log as required by	2029
this section fulfills the requirement of filing a log with the	2030
chief of the division of geological survey in section 1505.04 of	2031
the Revised Code.	2032

Sec. 1509.11.  The ownerpermittee of any well producing or	2033
capable of producing oil or gas shall file with the chief of the	2034
division of mineral resources management, on or before the first	2035
day of March, a statement of production of oil, gas, and brine for	2036
the last preceding calendar year in such form as the chief may	2037
prescribe. A permittee that has more than one hundred wells in	2038
this state shall submit electronically the statement of production	2039
in a format that is approved by the chief. The chief shall include	2040
on the form, at the minimum, a request for the submittal of the	2041
information that a person who is regulated under this chapter is	2042
required to submit under the "Emergency Planning and Community	2043
Right-To-Know Act of 1986," 100 Stat. 1728, 42 U.S.C.A. 11001, and	2044
regulations adopted under it, and that the division does not	2045
obtain through other reporting mechanisms.	2046

Sec. 1509.12.  No ownerpermittee of any well knowingly shall	2047
construct a well, or permit defective casing or tubing in sucha	2048
well to leak fluids or gasgases, that may cause damage to other	2049
permeable strata, underground sources of drinking water, or the	2050
surface of the land or that threatens the public health and	2051
safety. Upon notice fromthe discovery that the casing or tubing	2052
in a well is defective or that a well was not adequately	2053
constructed, the permittee shall notify the chief of the division	2054
of mineral resources management within twenty-four hours of the	2055
discovery, such ownerand the permittee shall immediately repair	2056
suchthe tubing or casing, correct the construction inadequacies,	2057
or plug and abandon suchthe well.	2058

Unless written permissiontemporary inactive well status is	2059
obtained under section 1509.062 of the Revised Code or another	2060
option is granted by the chief, any well that is or becomes	2061
incapable of producing oil or gas in commercial quantities shall	2062
be plugged, but no well shall be required to be plugged under this	2063
section that is being used to produce oil or gas for domestic	2064
purposes, or that is being lawfully used for a purpose other than	2065
production of oil or gas. When the chief finds that a well should	2066
be plugged, the chief shall notify the owner to that effect by	2067
order in writing and shall specify in suchthe order a reasonable	2068
time within which to comply. No owner shall fail or refuse to plug	2069
a well within the time specified in the order. Each day on which	2070
such a well remains unplugged thereafter constitutes a separate	2071
offense.	2072

Where the plugging method prescribed by rules adopted	2073
pursuant to section 1509.15 of the Revised Code cannot be applied	2074
or if applied would be ineffective in carrying out the protection	2075
that the law is meant to give, the chief, by order, may designate	2076
a different method of plugging. The abandonment report shall show	2077
the manner in which the well was plugged.	2078

In case of oil or gas wells abandoned prior to September 1,	2079
1951, the board of county commissioners of the county in which	2080
suchthe wells are located may submit to the electors of the	2081
county the question of establishing a special fund, by special	2082
general levy, by general bond issue, or out of current funds,	2083
which shall be approved by a majority of the electors voting upon	2084
suchthat question for the purpose of plugging suchthe wells. The	2085
fund shall be administered by the board and the plugging of oil	2086
and gas wells shall be under the supervision of the chief, and the	2087
board shall let contracts for suchthat purpose, provided that	2088
suchthe fund shall not be used for the purpose of plugging oil	2089
and gas wells that were abandoned subsequent to September 1, 1951.	2090

Sec. 1509.13. (A) No person shall plug and abandon a well	2091
without having a permit to do so issued by the chief of the	2092
division of mineral resources management. The permit shall be	2093
issued by the chief in accordance with this chapter, and the chief	2094
may establish by ruleshall be valid for a period of time	2095
twenty-four months from the date of issue during which permits	2096
will be valid. Application by the ownerpermittee for a permit to	2097
plug and abandon shall be filed as many days in advance as will be	2098
necessary for a mineral resources inspector or, if the well is	2099
located in a coal bearing township, both a deputy mine inspector	2100
and a mineral resources inspector to be present at the plugging.	2101
The application shall be filed with the chief upon a form that the	2102
chief prescribes and shall contain the following information:	2103

(A)(1) The name and address of the ownerpermittee;

2104

(B)(2) The signature of the ownerpermittee or the owner's	2105
permittee's authorized agent. When an authorized agent signs an	2106
application, it shall be accompanied by a certified copy of the	2107
appointment as that agent.	2108

(C)(3) The location of the well identified by section or lot	2109
number, city, village, township, and county;	2110

(D)(4) Designation of well by name and number;

2111

(E)(5) The total depth of the well to be plugged;

2112

(F)(6) The date and amount of last production from the well;

2113

(G)(7) A plan for plugging the well that complies with the	2114
rules adopted under section 1509.15 of the Revised Code;	2115

(8) Other data that the chief may require.

2116

If oil or gas has been produced from the well, the	2117
application shall be accompanied by a fee of two hundred fifty	2118
dollars. If a new dry well has been drilled in accordance with law	2119
and the permit is still valid, the permit holderpermittee may	2120
receive approval to plug the well from a mineral resources	2121
inspector or, if the well is located in a coal bearing township,	2122
both a deputy mine inspector and a mineral resources inspector so	2123
that the well can be plugged and abandoned without undue delay.	2124
Unless waived by a mineral resources inspector, the permittee or	2125
the permittee's authorized representative shall notify a mineral	2126
resources inspector at least twenty-four hours prior to the	2127
commencement of the plugging of a well. No well shall be plugged	2128
and abandoned without a mineral resources inspector present unless	2129
permission has been granted by the chief. The ownerpermittee of	2130
thea well shall give written notice at the same time to the owner	2131
of the land upon which the well is located, the owners or agents	2132
of adjoining land, adjoining well ownerspermittees or agents,	2133
and, ifall lessors that receive gas from the well pursuant to a	2134
lease agreement. If the well penetrates or passes within one	2135
hundred feet of the excavations and workings of a mine, the owner	2136
permittee of the well shall give written notice to the owner or	2137
lessee of that mine, of the well owner'spermittee's intention to	2138
abandon the well and of the time when the well ownerpermittee	2139
will be prepared to commence plugging it.	2140

(B) An applicant may file a request with the chief for	2141
expedited review of an application for a permit to plug and	2142
abandon a well. The chief may refuse to accept a request for	2143
expedited review if, in the chief's judgment, acceptance of the	2144
request will prevent the issuance, within twenty-one days of	2145
filing, of permits for which applications filed under section	2146
1509.06 of the Revised Code are pending. In addition to a complete	2147
application for a permit that meets the requirements of this	2148
section and the permit fee prescribed by this section, if	2149
applicable, a request shall be accompanied by a nonrefundable	2150
filing fee of two hundred fifty dollars unless the chief has	2151
ordered the applicant to plug and abandon the well. When a request	2152
for expedited review is filed, the chief shall immediately begin	2153
to process the application and shall issue a permit within seven	2154
days of the filing of the request unless the chief, by order,	2155
denies the application.	2156

(C) Upon the completion of the proper plugging of a well, the	2157
mineral resources inspector that was present for the plugging	2158
shall notify the chief that the well was plugged in accordance	2159
with the requirements established in this chapter and rules	2160
adopted under it. Upon receipt of the notification, the chief	2161
shall issue an order that releases the permittee or surety from	2162
the obligations under the bond that is required by section 1509.07	2163
of the Revised Code.	2164

(D) This section does not apply to a well plugged or	2165
abandoned in compliance with section 1571.05 of the Revised Code.	2166

Sec. 1509.14. Any(A) No person who abandonsshall abandon a	2167
well, whenwithout plugging it in accordance with this chapter and	2168
rules adopted under it. Each day that a well is abandoned and not	2169
plugged is a separate offense.	2170

(B) When written permission has been granted by the chief of	2171
the division of mineral resources management to abandon and plug	2172
thea well without an inspector being present to supervise the	2173
plugging, the permittee or the permittee's agent shall make a	2174
written report of the abandonment to the chief. The report shall	2175
be submitted not later than thirty days after the date of	2176
abandonment and shall include all of the following:	2177

(A)(1) The date of abandonment;

2178

(B)(2) The name of the owner or operatorpermittee of the	2179
well at the time of abandonment and the post-office address of the	2180
owner or operatorpermittee;	2181

(C)(3) The location of the well as to township and county and	2182
the name of the owner of the surface upon which the well is	2183
drilled, with the address thereof;	2184

(D)(4) The date of the permit to drill;

2185

(E)(5) The date when drilled;

2186

(F)(6) The depth of the well;

2187

(G)(7) The depth of the top of the formation to which the	2188
well was drilled;	2189

(H)(8) The depth of each seam of coal drilled through, if	2190
known;	2191

(I)(9) A detailed report as to how the well was plugged,	2192
giving in particular the manner in which the coal and various	2193
formations were plugged, and the date of the plugging of the well,	2194
including the names of those who witnessed the plugging of the	2195
well.	2196

The report shall be signed by the owner or operator	2197
permittee, or the agent of the owner or operatorpermittee, who	2198
abandons and plugs the well and verified by the oath of the party	2199
so signing. For the purposes of this section, the mineral	2200
resources inspectors may take acknowledgments and administer oaths	2201
to the parties signing the report.	2202

Sec. 1509.15.  When any well is to be abandoned, it shall	2203
first be plugged in accordance with a method of plugging adopted	2204
by rule by the chief of the division of mineral resources	2205
management. The rule shall require the use of best management	2206
practices and standards that are recognized by the oil and gas	2207
industry to attain a durable seal on a plugged well that will	2208
protect the health and safety of the public and that will prevent	2209
damage to the environment. The abandonment report shall show the	2210
manner in which the well was plugged.	2211

Sec. 1509.17. Any person who drills a well shall, before	2212
drilling into the principal or major producing formation therein,	2213
encase such well with good and sufficient wrought iron or steel	2214
casing so as to exclude all surface, fresh, or salt water from any	2215
part of such well penetrating the oil or gas bearing sand or rock	2216
or fresh water strata. The method of placing such casing shall be	2217
approved by the chief of the division of mineral resources	2218
management and shall be in accord with the most approved method	2219
used in the operation of such type of well. The chief may, in lieu	2220
of the casing method outlined in this section, accept adequate	2221
mudding methods with prepared clay in the annular space behind	2222
such casing in sufficient quantities to shut off all gas or oil	2223
and that will exclude all surface, fresh, or salt water from any	2224
part of such well penetrating the oil, gas, or mineral bearing	2225
formation, or fresh water strata.	2226

Written approval from the chief is required in each case. In	2227
the operation of a gas well, it is permissible, with the written	2228
consent of the chief, to withdraw all casing in such well, leaving	2229
only the tubing and the packer therein, provided that such well is	2230
filled with prepared clay from the top of such packer to the	2231
surface, as each succeeding string of casing in such well is	2232
withdrawn.	2233

(A) A well shall be constructed in a manner that is approved	2234
by the chief of the division of mineral resources management using	2235
materials that comply with standards that are recognized by the	2236
oil and gas industry for the type and depth of the well and the	2237
anticipated fluid pressures that are associated with the well. In	2238
addition, a well shall be constructed using sufficient steel or	2239
conductor casing in a manner that supports unconsolidated	2240
sediments, that protects and isolates all underground sources of	2241
drinking water as defined by the Safe Drinking Water Act, and that	2242
provides a base for a blowout preventer or other well control	2243
equipment that is necessary to control formation pressures and	2244
fluids during the drilling of the well and other operations to	2245
complete the well. Using steel production casing with sufficient	2246
cement, an oil and gas reservoir shall be isolated during well	2247
stimulation and during the productive life of the well. In	2248
addition, sour gas zones and gas bearing zones that have	2249
sufficient pressure and volume to over-pressurize the surface	2250
production casing annulus shall be isolated using approved	2251
cementing, casing, and well construction practices. However,	2252
isolating an oil and gas reservoir shall not exclude open-hole	2253
completion. A well shall not be perforated for purposes of well	2254
stimulation in any zone that is located around casing that	2255
protects underground sources of drinking water without written	2256
authorization from the chief. When the well penetrates the	2257
excavations of a mine, the casing shall remain intact as provided	2258
in section 1509.18 of the Revised Code and be plugged and	2259
abandoned in accordance with section 1509.15 of the Revised Code.	2260

(B) The chief may adopt rules in accordance with Chapter 119.	2261
of the Revised Code that are consistent with division (A) of this	2262
section and that establish standards for constructing a well, for	2263
evaluating the quality of well construction materials, and for	2264
completing remedial cementing. In addition, the standards	2265
established in the rules shall consider local geology and various	2266
drilling conditions and shall require the use of reasonable	2267
methods that are based on sound engineering principles.	2268

(C) A permittee or a permittee's authorized representative	2269
shall notify a mineral resources inspector each time that the	2270
permittee or the authorized representative notifies a person to	2271
perform the cementing of the conductor casing, the surface casing,	2272
or the production casing. In addition, not later than sixty days	2273
after the completion of the cementing of the production casing, a	2274
permittee shall submit to the chief a copy of the cement tickets	2275
for each cemented string of casing and a copy of all logs that	2276
were used to evaluate the quality of the cementing.	2277

(D) The chief shall grant an exemption from this section and	2278
rules adopted under it for a well that was constructed prior to	2279
the effective date of this amendment if the chief determines that	2280
a cement bond log confirms zonal isolation and there is a minimum	2281
of five hundred feet between the uppermost perforation of the	2282
casing and the lowest depth of an underground source of drinking	2283
water.	2284

Sec. 1509.18. Any personA permittee who drills a well	2285
within the limits of a mining operation shall give consideration	2286
for the safety of the personnel working in suchthe mine, and, if	2287
possible, shall locate suchthe well so as to penetrate a pillar.	2288

If a well is to be drilled within the limits of a mining	2289
operation that may penetrate the excavation of a mine, the hole	2290
shall be reduced approximately fifteen feet above the roof of the	2291
mine. If roof conditions at the mine warrant, the hole shall be	2292
reduced in the rock formation immediately above suchthe mine, and	2293
a string of casing placed upon the shoulder so as to shut off all	2294
water, then drilling shall be continued to a point approximately	2295
thirty feet below the floor of the mine and another string of	2296
casing set. Both strings of casing shall be approximately the same	2297
diameter as the diameter of the hole.	2298

If no water is encountered between the bottom of the drive	2299
pipe and the approximate casing shoulder above the roof of such	2300
the mine, in lieu of the casing method outlined above, it is	2301
permissible to use the following casing method: the hole shall be	2302
drilled thirty feet below the floor of the mine and a string of	2303
casing shall be extended from the surface to a point thirty feet	2304
below the floor of the mine with a packer of sufficient size	2305
attached to suchthe string of casing. SuchThe packer shall be	2306
placed so that it will be below all water and will be located in	2307
the rock formation immediately above suchthe mine and shall	2308
prevent water or destructive matter from entering therein. Then	2309
the annular space above suchthe packer between the casing and	2310
well wall shall be filled with prepared clay a minimum distance of	2311
fifty feet.	2312

If a well is drilled within the limits of a mining operation	2313
and does not penetrate the excavations of a mine, the hole shall	2314
be reduced thirty feet below the coal or mineral that is being	2315
mined and a string of casing placed at this point. The annular	2316
space behind suchthe casing shall be filled with neat cement from	2317
the casing seat to a point not less than fifty feet above such	2318
the seam of coal or mineral that is being mined. The packer	2319
method, outlined in this section, is also permissible in this type	2320
of well.	2321

It is permissible to attach a release coupling or a right and	2322
left nipple to the string of casing that extends through the mine,	2323
but suchthe release coupling or right and left nipple shall be	2324
placed in such a manner that it is above the packer or at least	2325
twenty feet above the coal or mineral that is being mined.	2326

In wells penetrating the excavation of a mine, the casing	2327
shall be enclosed, if possible, with a column extending from the	2328
floor to the roof of suchthe mine, built of brick or other	2329
suitable material, subject to the approval of the chief of the	2330
division of mineral resources management. If the chief finds the	2331
method prescribed in this section unsafe, inadequate, or not	2332
suitable, the chief shall require suchthe method to be altered in	2333
such a manner that it will be safe.	2334

The chief may order the immediate suspension of the drilling	2335
or reopening of a well in a coal bearing township after	2336
determining that the drilling or reopening activities present an	2337
imminent and substantial threat to public health or safety or to a	2338
miner's health or safety. Before issuing such an order, the chief	2339
shall notify the permittee in any manner that the chief determines	2340
would provide reasonable notification of the chief's intent to	2341
issue a suspension order. However, the chief may order the	2342
immediate suspension of the drilling or reopening of a well in a	2343
coal bearing township without prior notification if the chief has	2344
made reasonable attempts to notify the permittee and the attempts	2345
have failed. If the chief orders the immediate suspension of such	2346
drilling or reopening, the chief shall provide the permittee	2347
notice of the order as soon as practical.	2348

Not later than five days after the issuance of an order to	2349
immediately suspend the drilling or reopening of a well in a coal	2350
bearing township, the chief shall provide the permittee an	2351
opportunity to be heard and to present evidence that the drilling	2352
or reopening activities will not likely result in an imminent and	2353
substantial threat to public health or safety or to a miner's	2354
health or safety, as applicable. If the chief, after considering	2355
all evidence presented by the permittee, determines that the	2356
activities do not present such a threat, the chief shall revoke	2357
the suspension order.	2358

Notwithstanding any other provision of this chapter, a	2359
permittee may appeal a suspension order issued under this section	2360
to the reclamation commission in accordance with section 1513.13	2361
of the Revised Code.	2362

Sec. 1509.19. (A) A permittee who elects to stimulate a well	2363
shall stimulate the well in a manner that will not endanger	2364
underground sources of drinking water. Not later than five days	2365
before commencing the stimulation of the well, the permittee shall	2366
submit to the chief of the division of mineral resources	2367
management a comprehensive list of each substance and the	2368
concentration of the substance that will be used in the	2369
stimulation of the well. A permittee who elects to stimulate a	2370
well shall comply with the rules adopted under division (C) of	2371
section 1509.22 of the Revised Code. In addition, such a permittee	2372
shall not use hydraulic fracturing fluid that is known to pose a	2373
significant risk to human health.	2374

(B) Not later than twenty-four hours before commencing the	2375
stimulation of a well, the permittee or the permittee's authorized	2376
representative shall notify a mineral resources inspector. If	2377
during the stimulation of a well damage to the production casing	2378
or cement occurs and results in the circulation of fluids from the	2379
annulus of the surface production casing, the permittee shall	2380
immediately terminate the stimulation of the well and notify the	2381
chief. If the chief determines that the casing and the cement may	2382
be remediated in a manner that isolates the oil and gas bearing	2383
zones of the well, the chief may authorize the completion of the	2384
stimulation of the well. If the chief determines that the	2385
stimulation of a well resulted in irreparable damage to the well,	2386
the chief shall order that the well be plugged and abandoned	2387
within thirty days of the issuance of the order.	2388

For purposes of determining the integrity of the remediation	2389
of the casing or cement of a well that was damaged during the	2390
stimulation of the well, the chief may require the permittee of	2391
the well to submit cement evaluation logs, temperature surveys,	2392
pressure tests, or a combination of such logs, surveys, and tests.	2393

(C) A permittee shall notify the chief or a mineral resources	2394
inspector within twenty-four hours of a violation of any term or	2395
condition of the permit that occurs during hydraulic fracturing.	2396

Sec. 1509.191.  (A) If a person who has experienced a	2397
diminution of the person's water supply or whose water supply is	2398
contaminated believes that the diminution or contamination is the	2399
result of the drilling of a well, conversion of a well to a	2400
different purpose, or operation of a well, the person may send	2401
written notification regarding the person's water supply to the	2402
division of mineral resources management and request the division	2403
to conduct an investigation of the person's water supply. Not	2404
later than ten days after the division's receipt of a written	2405
notification, the chief of the division of mineral resources	2406
management or the chief's authorized representative shall	2407
investigate the water supply that is the subject of the	2408
notification. Not later than forty-five days after receipt of the	2409
notification, the chief shall determine whether a diminution of	2410
the water supply or contamination of the water supply, as	2411
applicable, was caused by the drilling, conversion, or operation	2412
of a well. If the chief determines that a diminution or	2413
contamination of the water supply was caused by the drilling,	2414
conversion, or operation of a well, the chief shall order the	2415
permittee who is responsible for the well to provide a temporary	2416
replacement of the water supply for all of the person's intended	2417
uses. The permittee shall provide the temporary replacement of the	2418
water supply until a permanent replacement of the water supply is	2419
fully implemented. If the chief determines that the diminution or	2420
contamination of the water supply was not caused by the drilling,	2421
conversion, or operation of a well, the chief shall issue an order	2422
stating that the diminution or contamination was not caused by a	2423
well and shall send a copy of the order to the person who	2424
submitted the notification under this section.	2425

If the chief cannot conclusively determine that the	2426
diminution or contamination of the water supply was or was not	2427
caused by the drilling, conversion, or operation of a well, the	2428
chief shall issue an order indicating the chief's inability to	2429
make such a determination. The chief also shall send a notice to	2430
the permittee of each well that may have caused the diminution or	2431
contamination stating that division (B) of this section may apply.	2432

(B)(1) If a water supply that is the subject of a	2433
notification submitted under division (A) of this section is	2434
located within one thousand feet from the surface location of a	2435
well and diminution of the water supply or contamination of the	2436
water supply occurred within six months after completion of	2437
drilling or converting the well or after commencement of operation	2438
of the well, as applicable, there is a rebuttable presumption that	2439
the permittee of the well caused the dimunition or contamination	2440
of the well. A permittee may rebut the presumption by proving at	2441
least one of the following:	2442

(a) The dimunition or contamination of the water supply	2443
existed prior to the drilling, conversion, or operation of the	2444
well.	2445

(b) The person who has experienced the dimunition or	2446
contamination of the water supply refused to allow the permittee	2447
of the well access to the water supply to conduct a survey of the	2448
water supply prior to the drilling, conversion, or operation of	2449
the well.	2450

(c) The dimunition or contamination of the water supply was	2451
caused by something other than the drilling, conversion, or	2452
operation of the well.	2453

(2) Not later than ten days after receipt of an order or	2454
notice from the chief under division (A) of this section, a	2455
permittee of a well to which division (B)(1) of this section	2456
applies shall submit all information that the permittee wishes to	2457
submit in order to rebut the presumption. Not later than thirty	2458
days after receipt of all of the information submitted by a	2459
permittee of a well under division (B)(1) of this section or not	2460
later than thirty days after a permittee of a well received such	2461
an order or notice under division (A) of this section, whichever	2462
is earlier, the chief shall determine if the permittee rebutted	2463
the presumption. If the chief determines that the permittee	2464
rebutted the presumption, the chief shall send notice to the	2465
permittee and to the person that submitted the notification under	2466
division (A) of this section indicating the chief's determination	2467
that the presumption was rebutted. If the chief determines that	2468
the permittee failed to rebut the presumption, the chief shall	2469
order the permittee to provide a temporary replacement of water	2470
supply for all of the person's intended uses. The permittee shall	2471
provide the temporary replacement of water supply until a	2472
permanent replacement of the water supply is fully implemented.	2473

(C) The chief shall adopt rules in accordance with Chapter	2474
119. of the Revised Code that are necessary for the administration	2475
of this section. The rules shall establish all of the following:	2476

(1) Requirements governing and procedures for the	2477
certification of laboratories to conduct water surveys for the	2478
purposes of this section;	2479

(2) Requirements governing and procedures for the collection	2480
of water samples for purposes of such a water survey;	2481

(3) Requirements governing and procedures to be used by a	2482
permittee to demonstrate pursuant to division (B)(1)(b) of this	2483
section that the person who claims to have a dimunition or	2484
contamination of a water supply refused to allow the permittee of	2485
the well access to the water supply to conduct a survey prior to	2486
the drilling, conversion, or operation of the well.	2487

(D) For purposes of rebutting the presumption established in	2488
division (B)(1) of this section, a permittee shall use an	2489
independent laboratory that is certified by the chief to conduct a	2490
survey of a water supply that may be required for purposes of that	2491
division. A certified independent laboratory that conducts a	2492
survey of a water supply shall prepare a report in accordance with	2493
this division and send a copy of the report to the division of	2494
mineral resources management, the permittee, and the person that	2495
submitted the notification under division (A) of this section. A	2496
report of a water survey prepared for purposes of this section	2497
shall contain all of the following:	2498

(1) The location of the water supply and the name of the	2499
surface landowner;	2500

(2) The name of the certified laboratory, the person who	2501
conducted the survey, and the date on which the survey was	2502
conducted;	2503

(3) A description of where and how samples for the survey	2504
were collected;	2505

(4) A description of the type and age, if known, of the water	2506
supply;	2507

(5) A description of any treatment of the water supply;

2508

(6) The name of each applicable permittee;

2509

(7) The results of all laboratory analysis conducted on	2510
samples from the water supply.	2511

(E) Any person may contract with a certified independent	2512
laboratory to survey a water supply in order to support a future	2513
claim that diminution or contamination of the water supply, as	2514
applicable, was or was not caused by the drilling, conversion, or	2515
operation of a well.	2516

Sec. 1509.20.  All owners, lessees,permittees or their	2517
agents, drilling for or producing crude oil or natural gas, shall	2518
use every reasonable precaution in accordance with the most	2519
approved methods of operation to stop and prevent waste of oil or	2520
gas, or both. Any well productive of natural gas in quantity	2521
sufficient to justify utilization shall be utilized or shut	2522
shutdown in within ten days after completionaccordance with the	2523
requirements established in this chapter and rules adopted under	2524
it.	2525

The ownerpermittee of any well producing both oil and gas	2526
may burn such gas in flares when the gas is lawfully produced and	2527
there is no economic market at the well for the escaping gas,	2528
after inspection of the well, the chief of the division of mineral	2529
resources management or a mineral resources inspector, in	2530
consultation with the permittee, determines that it is necessary	2531
to prevent the dangerous accumulation of gas and to protect the	2532
health and safety of the public or the workers at the well.	2533

Sec. 1509.21.  No person shall, without first having obtained	2534
a permit from the chief of the division of mineral resources	2535
management, conduct secondary or additional recovery operations,	2536
including any underground injection of fluids or carbon dioxide	2537
for the secondary or tertiary recovery of oil or natural gas or	2538
for the storage of hydrocarbons that are liquid at standard	2539
temperature or pressure, unless a rule of the chief expressly	2540
authorizes such operations without a permit. SuchThe permit shall	2541
be in addition to any permit required by section 1509.05 of the	2542
Revised Code. Secondary or additional recovery operations shall be	2543
conducted in accordance with rules and orders of the chief and any	2544
terms or conditions of the permit authorizing such operations. In	2545
addition, the chief may authorize tests to evaluate whether fluids	2546
or carbon dioxide may be injected in a reservoir and to determine	2547
the maximum allowable injection pressure. Rules adopted under this	2548
section shall include provisions regarding applications for and	2549
the issuance of permits; the terms and conditions of permits;	2550
entry to conduct inspections and to examine records to ascertain	2551
compliance with this section and rules, orders, and terms and	2552
conditions of permits adopted or issued thereunder; the provision	2553
and maintenance of information through monitoring, recordkeeping,	2554
and reporting; and other provisions in furtherance of the goals of	2555
this section and the Safe Drinking Water Act. To implement the	2556
goals of the Safe Drinking Water Act, the chief shall not issue a	2557
permit for the underground injection of fluids for the secondary	2558
or tertiary recovery of oil or natural gas or for the storage of	2559
hydrocarbons that are liquid at standard temperature and pressure,	2560
unless the chief concludes that the applicant has demonstrated	2561
that the injection will not result in the presence of any	2562
contaminant in underground water that supplies or can be	2563
reasonably expected to supply any public water system, such that	2564
the presence of any such contaminant may result in the system's	2565
not complying with any national primary drinking water regulation	2566
or may otherwise adversely affect the health of persons. Rules,	2567
orders, and terms or conditions of permits adopted or issued under	2568
this section shall be construed to be no more stringent than	2569
required for compliance with the Safe Drinking Water Act, unless	2570
essential to ensure that underground sources of drinking water	2571
will not be endangered.	2572

Sec. 1509.22.  (A) Except when acting in accordance with	2573
section 1509.226 of the Revised Code, noNo person shall place or,	2574
cause to be placed, store, or dispose of brine, crude oil, natural	2575
gas, or other fluids associated with the exploration or	2576
development of oil and gas resources in surface or ground water or	2577
in or on the land in such quantities or in such manner as actually	2578
causes or could reasonably be anticipated to cause either of the	2579
following:	2580

(1) Water used for consumption by humans or domestic animals	2581
to exceed the standards of the Safe Drinking Water Act;	2582

(2) Damage or injury to public health or safety or the	2583
environment.	2584

(B) No person shall store or dispose of brine in violation of	2585
a plan approved under division (A) of section 1509.222 or section	2586
1509.226 of the Revised Code, in violation of a resolution	2587
submitted under section 1509.226 of the Revised Code, or in	2588
violation of rules or orders applicable to those plans or	2589
resolutionsA permittee, a person registered to transport brine	2590
under section 1509.222 of the Revised Code, and a person to whom a	2591
permit has been issued under division (D) of this section jointly	2592
and severally shall ensure that brine and other waste substances	2593
associated with the exploration or development of oil and gas	2594
resources from the permittee's well are stored and disposed of in	2595
accordance with this chapter and rules adopted under it and with	2596
orders issued by the chief of the division of mineral resources	2597
management.	2598

(C) The chief of the division of mineral resources management	2599
shall adopt rules and issue orders regarding storage and disposal	2600
of brine and other waste substances; however, the storage and	2601
disposal of brine and the chief's rules relating to storage and	2602
disposal are subject to all of the following standards:	2603

(1) Brine and other waste substances from any well except an	2604
exempt Mississippian well shall be disposed of only by injection	2605
into an underground formation, including annular disposal if	2606
approved by rule of the chief, which injection shall be subject to	2607
division (D) of this section; by surface application in accordance	2608
with section 1509.226 of the Revised Code; in association with a	2609
method of enhanced recovery as provided in section 1509.21 of the	2610
Revised Code; or by other methods approved by the chief for	2611
testing or implementing a new technology or method of disposal.	2612
Brine from exempt Mississippian wells shall not be discharged	2613
directly into the waters of the state.	2614

(2) Muds, cuttings, and other waste substances shall not be	2615
disposed of in violation of any rule;accordance with the	2616
restoration plan that is included with the applicable permit	2617
application as required by division (A)(11) of section 1509.06 of	2618
the Revised Code.	2619

(3) Pits maySteel tanks shall be used for containing brine	2620
and other waste substances resulting from, obtained from, or	2621
produced in connection with drilling, fracturingwell stimulation,	2622
reworking, reconditioning, plugging back, or plugging operations,	2623
but the pitsthat are located within two thousand five hundred	2624
feet of a lake, stream, or other body of water that is used as a	2625
source of drinking water. The steel tanks shall be constructed and	2626
maintained to prevent the escape of brine and other waste	2627
substances. A steel tank or pit may be used at a well that is	2628
located more than two thousand five hundred feet from a lake,	2629
stream, or other body of water that is used as a source of	2630
drinking water if the use is authorized by the chief. A steel tank	2631
or pit so used shall be constructed and maintained to prevent the	2632
escape of brine and other waste substances.	2633

(4) A dike or pit may be used for spill prevention and	2634
control. A dike or pit so used shall be constructed and maintained	2635
to prevent the escape of brine, and the reservoir within such a	2636
dike or pit shall be kept reasonably free of brine and other waste	2637
substances.	2638

(4) Earthen impoundments constructed pursuant to the	2639
division's specifications may be used for the temporary storage of	2640
brine and other waste substances in association with a saltwater	2641
injection well, an enhanced recovery project, or a solution mining	2642
project;	2643

(5) No pit, earthen impoundment, or dike shall be used for	2644
the temporary storage of brine except in accordance with divisions	2645
(C)(3) and (4)division (C) of this section;.	2646

(6) No pit or dike shall be used for the ultimate disposal of	2647
brine or other waste substances.	2648

(D) No person, without first having obtained a permit from	2649
the chief, shall inject brine or other waste substances resulting	2650
from, obtained from, or produced in connection with oil or gas	2651
drilling, exploration, or production into an underground formation	2652
unless a rule of the chief expressly authorizes the injection	2653
without a permit. The permit shall be in addition to any permit	2654
required by section 1509.05 of the Revised Code, and the permit	2655
application shall be accompanied by a permit fee of one hundred	2656
thousand dollars. The	2657

The chief shall adopt rules in accordance with Chapter 119.	2658
of the Revised Code regarding the injection into wells of brine	2659
and other waste substances resulting from, obtained from, or	2660
produced in connection with oil or gas drilling, exploration, or	2661
production. The rules shall include provisions regarding	2662
applications for and issuance of the permits required by this	2663
division, including eligibility requirements for an applicant;	2664
terms and conditions of permits; entry to conduct inspections and	2665
to examine and copy records to ascertain compliance with this	2666
division and rules, orders, and terms and conditions of permits	2667
adopted or issued under it; the provision and maintenance of	2668
information through monitoring, recordkeeping, and reporting; and	2669
other provisions in furtherance of the goals of this section and	2670
the Safe Drinking Water Act. To implement the goals of the Safe	2671
Drinking Water Act, the chief shall not issue a permit for the	2672
injection of brine or other waste substances resulting from,	2673
obtained from, or produced in connection with oil or gas drilling,	2674
exploration, or production unless the chief concludes that the	2675
applicant has demonstrated that the injection will not result in	2676
the presence of any contaminant in ground water that supplies or	2677
can reasonably be expected to supply any public water system, such	2678
that the presence of the contaminant may result in the system's	2679
not complying with any national primary drinking water regulation	2680
or may otherwise adversely affect the health of persons. Any	2681
exception established under the Safe Drinking Water Act for oil	2682
and gas drilling operations does not apply if it conflicts with	2683
this section or rules adopted under it. The chief may issue an	2684
order without a prior adjudication hearing, that requires	2685
compliance with this section and rules adopted under it and the	2686
terms and conditions of a permit issued under it. This division	2687
and rules, orders, and terms and conditions of permits adopted or	2688
issued under it shall be construed to be no more stringent than	2689
required for compliance with the Safe Drinking Water Act unless	2690
essentialin order to ensure that underground sources of drinking	2691
water will not be endangered.	2692

(E) The ownerperson holding a permit, or an assignee or	2693
transferee who has assumed the obligations and liabilities imposed	2694
by this chapter and any rules adopted or orders issued under it	2695
pursuant to section 1509.31 of the Revised Code, and the operator	2696
of a well shall be liable for a violation of this section or any	2697
rules adopted or orders or terms or conditions of a permit issued	2698
under it.	2699

(F) An owner shallThe chief may order the current permittee	2700
to replace the water supply of the holder of an interest in real	2701
property who obtains all or part of the holder's supply of water	2702
for domestic, agricultural, industrial, or other legitimate use	2703
from an underground or surface source where the supply has been	2704
substantially disrupted by contamination, diminution, or	2705
interruption proximately resulting from the owner'spermittee's	2706
oil or gas operation, or the owner may elect to compensate the	2707
holder of the interest in real property for the difference between	2708
the fair market value of the interest before the damage occurred	2709
to the water supply and the fair market value after the damage	2710
occurred if the cost of replacing the water supply exceeds this	2711
difference in fair market values. However, during the pendency of	2712
any order issued under this division, the owner shall obtain for	2713
the holder or shall reimburse the holder for the reasonable cost	2714
of obtaining a water supply from the time of the contamination,	2715
diminution, or interruption by the operation until the owner has	2716
complied with an order of the chief for compliance with this	2717
division or such an order has been revoked or otherwise becomes	2718
not effective. If the owner elects to pay the difference in fair	2719
market values, but the owner and the holder have not agreed on the	2720
difference within thirty days after the chief issues an order for	2721
compliance with this division, within ten days after the	2722
expiration of that thirty-day period, the owner and the chief each	2723
shall appoint an appraiser to determine the difference in fair	2724
market values, except that the holder of the interest in real	2725
property may elect to appoint and compensate the holder's own	2726
appraiser, in which case the chief shall not appoint an appraiser.	2727
The two appraisers appointed shall appoint a third appraiser, and	2728
within thirty days after the appointment of the third appraiser,	2729
the three appraisers shall hold a hearing to determine the	2730
difference in fair market values. Within ten days after the	2731
hearing, the appraisers shall make their determination by majority	2732
vote and issue their final determination of the difference in fair	2733
market values. The chief shall accept a determination of the	2734
difference in fair market values made by agreement of the owner	2735
and holder or by appraisers under this division and shall make and	2736
dissolve orders accordingly. This division does not affect in any	2737
way the right of any person to enforce or protect, under	2738
applicable law, the person's interest in water resources affected	2739
by an oil or gas operation. Not later than five days after the	2740
chief determines that a holder's water supply has been	2741
substantially disrupted, the permittee shall provide a temporary	2742
replacement of water supply for all of the holder's intended uses.	2743
The permittee shall provide the temporary replacement of water	2744
supply until a permanent replacement of the water supply is fully	2745
implemented. The chief may assess a fine against a permittee for	2746
each day that the permittee fails to replace a holder's water	2747
supply. A permittee's replacement of a holder's water supply shall	2748
not affect the holder's right to bring an action against the	2749
permittee for the permittee's negligence in the substantial	2750
disruption of the holder's water supply.	2751

(G) In any action brought by the state for a violation of	2752
division (A) of this section involving any well at which annular	2753
disposal is used, there shall be a rebuttable presumption	2754
available to the state that the annular disposal caused the	2755
violation if the well is located within a one-quarter-mile radius	2756
of the site of the violation.	2757

(H) In order to provide money to the division of mineral	2758
resources management for the administration of this section, there	2759
is levied on the owner of an injection well the following fees:	2760

(1) Five cents per barrel of each substance that is delivered	2761
to a well to be injected in the well when the substance is	2762
produced within the division of mineral resources management	2763
regulatory district in which the well is located or within an	2764
adjoining mineral resources management regulatory district;	2765

(2) Twenty cents per barrel of each substance that is	2766
delivered to a well to be injected in the well when the substance	2767
is not produced within the division of mineral resources	2768
management regulatory district in which the well is located or	2769
within an adjoining mineral resources management regulatory	2770
district.	2771

The owner of an injection well who is issued a permit under	2772
this section shall collect the fee levied by this division on	2773
behalf of the division of mineral resources management and forward	2774
the fee to the division. The chief shall transmit all money	2775
received under division (H) of this section to the treasurer of	2776
state who shall deposit the money in the state treasury to the	2777
credit of the oil and gas well fund created in section 1509.02 of	2778
the Revised Code. The owner of an injection well who collects the	2779
fee levied by this division may retain up to three per cent of the	2780
amount that is collected.	2781

The chief shall adopt rules in accordance with Chapter 119.	2782
of the Revised Code establishing requirements and procedures for	2783
collection of the fee levied by this division.	2784

(I) In an action under section 1509.04, 1509.32, or 1509.33	2785
of the Revised Code to enforce this section, the court shall grant	2786
preliminary and permanent injunctive relief and impose a civil	2787
penalty upon the showing that the person against whom the action	2788
is brought has violated, is violating, or will violate this	2789
section or rules, orders, or terms or conditions of permits	2790
adopted or issued thereunder. The court shall not require, prior	2791
to granting such preliminary and permanent injunctive relief or	2792
imposing a civil penalty, proof that the violation was, is, or	2793
will be the result of intentional conduct or negligence. In any	2794
such action, any person may intervene as a plaintiff upon the	2795
demonstration that the person has an interest that is or may be	2796
adversely affected by the activity for which injunctive relief or	2797
a civil penalty is sought.	2798

Sec. 1509.221. (A) No person, without first having obtained a	2799
permit from the chief of the division of mineral resources	2800
management, shall drill a well or inject a substance into a well	2801
for the exploration for or extraction of minerals or energy, other	2802
than oil or natural gas, including, but not limited to, the mining	2803
of sulfur by the Frasch process, the solution mining of minerals,	2804
the in situ combustion of fossil fuel, or the recovery of	2805
geothermal energy to produce electric power, unless a rule of the	2806
chief expressly authorizes the activity without a permit. The	2807
permit shall be in addition to any permit required by section	2808
1509.05 of the Revised Code. The	2809

The chief shall adopt rules in accordance with Chapter 119.	2810
of the Revised Code governing the issuance of permits under this	2811
section. The rules shall include provisions regarding the matters	2812
the applicant for a permit shall demonstrate to establish	2813
eligibility for a permit; the form and content of applications for	2814
permits; the terms and conditions of permits; entry to conduct	2815
inspections and to examine and copy records to ascertain	2816
compliance with this section and rules, orders, and terms and	2817
conditions of permits adopted or issued thereunder; provision and	2818
maintenance of information through monitoring, recordkeeping, and	2819
reporting; and other provisions in furtherance of the goals of	2820
this section and the Safe Drinking Water Act. To implement the	2821
goals of the Safe Drinking Water Act, the chief shall not issue a	2822
permit under this section, unless the chief concludes that the	2823
applicant has demonstrated that the drilling, injection of a	2824
substance, and extraction of minerals or energy will not result in	2825
the presence of any contaminant in underground water that supplies	2826
or can reasonably be expected to supply any public water system,	2827
such that the presence of the contaminant may result in the	2828
system's not complying with any national primary drinking water	2829
regulation or may otherwise adversely affect the health of	2830
persons. The chief may issue, without a prior adjudication	2831
hearing, orders requiring compliance with this section and rules,	2832
orders, and terms and conditions of permits adopted or issued	2833
thereunder. This section and rules, orders, and terms and	2834
conditions of permits adopted or issued thereunder shall be	2835
construed to be no more stringent than required for compliance	2836
with the Safe Drinking Water Act, unless essentialin order to	2837
ensure that underground sources of drinking water will not be	2838
endangered.	2839

(B) In order to protect the health and safety of the public,	2840
drinking water sources, and the environment, a person who is	2841
issued a permit under this section shall do all of the following:	2842

(1) Submit to the chief a comprehensive list of each	2843
substance and the corresponding concentration of each substance	2844
that will be used in drilling and in hydraulic fracturing and	2845
recovery processes in order for the chief to establish a water	2846
quality baseline of water supplies that are in close proximity to	2847
the proposed well prior to the commencement of drilling or	2848
hydraulic fracturing. The permittee shall submit the list not	2849
later than six months prior to the start of the drilling or	2850
hydraulic fracturing.	2851

(2) In hydraulic fracturing and recovery processes, use	2852
hydraulic fracturing fluid that is known not to pose a significant	2853
risk to human health;	2854

(3) Use a closed-loop system in drilling operations that	2855
occur within two thousand five hundred feet of a drinking water	2856
source in order to prevent the contamination of surface and ground	2857
water with hydraulic fracturing fluid and to protect drinking	2858
water, the health of the public, and the environment;	2859

(4) Notify the chief or a mineral resources inspector within	2860
twenty-four hours of a violation of any term or condition of the	2861
permit that occurs during drilling operations or hydraulic	2862
fracturing.	2863

(C) In an action under section 1509.04 or 1509.33 of the	2864
Revised Code to enforce this section, the court shall grant	2865
preliminary and permanent injunctive relief and impose a civil	2866
penalty upon the showing that the person against whom the action	2867
is brought has violated, is violating, or will violate this	2868
section or rules, orders, or terms or conditions of permits	2869
adopted or issued thereunder. The court shall not require, prior	2870
to granting such preliminary and permanent injunctive relief or	2871
imposing a civil penalty, proof that the violation was, is, or	2872
will be the result of intentional conduct or negligence. In any	2873
such action, any person may intervene as a plaintiff upon the	2874
demonstration that the person has an interest that is or may be	2875
adversely affected by the activity for which injunctive relief or	2876
a civil penalty is sought.	2877

Sec. 1509.222.  (A)(1) Except as provided in section 1509.226	2878
of the Revised Code, noNo person shall transport brine by vehicle	2879
in this state unless the business entity that employs the person	2880
first registers with and obtains a registration certificate and	2881
identification number from the chief of the division of oil and	2882
gasmineral resources management.	2883

(2) No more than one registration certificate shall be	2884
required of any business entity. Registration certificates issued	2885
under this section are not transferable. An applicant shall file	2886
an application with the chief, containing such information in such	2887
form as the chief prescribes, but including a plan for disposal	2888
that provides for compliance with the requirements of this chapter	2889
and rules of the chief pertaining to the transportation of brine	2890
by vehicle and the disposal of brine so transported and that lists	2891
all disposal sites that the applicant intends to use, the bond	2892
required by section 1509.225 of the Revised Code, and a	2893
certificate issued by an insurance company authorized to do	2894
business in this state certifying that the applicant has in force	2895
a liability insurance policy in an amount not less than threefive	2896
hundred thousand dollars bodily injury coverage and three hundred	2897
thousandone million dollars property damage coverage to pay	2898
damages for injury to persons or property caused by the	2899
collecting, handling, transportation, or disposal of brine. The	2900
policy shall be maintained in effect during the term of the	2901
registration certificate. The policy or policies providing the	2902
coverage shall require the insurance company to give notice to the	2903
chief if the policy or policies lapse for any reason. Upon such	2904
termination of the policy, the chief may suspend the registration	2905
certificate until proper insurance coverage is obtained. Each	2906
application for a registration certificate shall be accompanied by	2907
a nonrefundable fee of five hundred dollars.	2908

(3) If a business entity that has been issued a registration	2909
certificate under this section changes its name due to a business	2910
reorganization or merger, the business entity shall revise the	2911
bond or certificates of deposit required by section 1509.225 of	2912
the Revised Code and obtain a new certificate from an insurance	2913
company in accordance with division (A)(2) of this section to	2914
reflect the change in the name of the business entity.	2915

(B) The chief shall issue an order denying an application for	2916
a registration certificate if the chief finds that either of the	2917
following applies:	2918

(1) The applicant, at the time of applying for the	2919
registration certificate, has been found liable by a final	2920
nonappealable order of a court of competent jurisdiction for	2921
damage to streets, roads, highways, bridges, culverts, or	2922
drainways pursuant to section 4513.34 or 5577.12 of the Revised	2923
Code until the applicant provides the chief with evidence of	2924
compliance with the order;.	2925

(2) The applicant's plan for disposal does not provide for	2926
compliance with the requirements of this chapter and rules of the	2927
chief pertaining to the transportation of brine by vehicle and the	2928
disposal of brine so transportedthe Revised Code pertaining to	2929
the protection of public health and safety and the environment and	2930
the rules adopted under section 1509.22 of the Revised Code.	2931

(C) No applicant shall attempt to circumvent division (B) of	2932
this section by applying for a registration certificate under a	2933
different name or business organization name, by transferring	2934
responsibility to another person or entity, or by any similar act.	2935

(D) A registered transporter shall apply to revise a disposal	2936
plan under procedures that the chief shall prescribe by rule.	2937
However, at a minimum, an application for a revision shall list	2938
all sources and disposal sites of brine currently transported. The	2939
chief shall deny any application for a revision of a plan under	2940
this division if the chief finds that the proposed revised plan	2941
does not provide for compliance with the requirements of this	2942
chapter and rules of the chief pertaining to the transportation of	2943
brine by vehicle and the disposal of brine so transported.	2944
Approvals and denials of revisions shall be by order of the chief.	2945

(E) The chief may adopt rules, issue orders, and attach terms	2946
and conditions to registration certificates as may be necessary to	2947
administer, implement, and enforce sections 1509.222 to 1509.226	2948
1509.225 of the Revised Code for protection of public health or	2949
safety or conservation of natural resources.	2950

Sec. 1509.223.  (A) No permit holderpermittee or owner	2951
lessee of a well shall enter into an agreement with or permit	2952
allow any person to transport brine produced from the well who is	2953
not registered pursuant to section 1509.222 of the Revised Code or	2954
exempt from registration under section 1509.226 of the Revised	2955
Code.	2956

(B) Each registered transporter shall file with the chief of	2957
the division of mineral resources management, on or before the	2958
fifteenth day of April, a statement concerning brine transported,	2959
including quantities transported and source and delivery points,	2960
during the last preceding calendar year, and such other	2961
information in such form as the chief may prescribe.	2962

(C) Each registered transporter shall keep on each vehicle	2963
used to transport brine a daily log and have it available upon the	2964
request of the chief or an authorized representative of the chief	2965
or a peace officer. The log shall, at a minimum, include all of	2966
the following information:	2967

(1) The name of the ownerpermittee or lessee or owners	2968
permittees or lessees of the well or wells producing the brine to	2969
be transported;	2970

(2) The date and time the brine is loaded;

2971

(3) The name of the driver;

2972

(4) The amount of brine loaded at each collection point;

2973

(5) The disposal location;

2974

(6) The date and time the brine is disposed of and the amount	2975
of brine disposed of at each location.	2976

No registered transporter shall falsify or fail to keep or	2977
submit the log required by this division.	2978

(D) Each registered transporter shall legibly identify with	2979
reflective paints all vehicles employed in transporting or	2980
disposing of brine. Letters shall be no less than four inches in	2981
height and shall indicate the identification number issued by the	2982
chief, the word "brine," and the name and telephone number of the	2983
transporter.	2984

(E) The chief shall maintain and keep a current list of	2985
persons registered to transport brine under section 1509.222 of	2986
the Revised Code. The list shall be open to public inspection. It	2987
is an affirmative defense to a charge under division (A) of this	2988
section that at the time the permit holderpermittee or owner	2989
lessee of a well entered into an agreement with or permitted	2990
allowed a person to transport brine, the person was shown on the	2991
list as currently registered to transport brine.	2992

Sec. 1509.224.  (A) In addition to any other remedies	2993
provided in this chapter, if the chief of the division of mineral	2994
resources management has reason to believe that a pattern of the	2995
same or similar violations of any requirements of sections	2996
1509.22, 1509.222, or 1509.223 of the Revised Code, or any rule	2997
adopted thereunder or term or condition of the registration	2998
certificate issued thereunder exists or has existed, and the	2999
violations are caused by the transporter's indifference, lack of	3000
diligence, or lack of reasonable care, or are willfully caused by	3001
the transporter, the chief shall immediately issue an order to the	3002
transporter to show cause why the certificate should not be	3003
suspended or revokedsuspending the transporter's registration	3004
certificate. After the issuance of the order, the chief shall	3005
provide the transporter an opportunity to be heard and to present	3006
evidence at an informal hearing conducted by the chief. If, at the	3007
conclusion of the hearing, the chief finds that such a pattern of	3008
violations exists or has existed, the chief shall issue an order	3009
suspending or revoking the transporter's registration certificate.	3010
An order suspending or revoking a certificate under this section	3011
may be appealed under sections 1509.36 and 1509.37 of the Revised	3012
Code, or notwithstanding any other provision of this chapter, may	3013
be appealed directly to the court of common pleas of Franklin	3014
county.	3015

(B) Before issuing an order denying a registration	3016
certificate; approving or denying approval of an application for	3017
revision of a registered transporter's plan for disposal; or to	3018
implement, administer, or enforce section 1509.22, 1509.221,	3019
1509.222, 1509.223, or 1509.225, or 1509.226 of the Revised Code	3020
and rules and terms and conditions of registration certificates	3021
adopted or issued thereunder pertaining to the transportation of	3022
brine by vehicle and the disposal of brine so transported, the	3023
chief shall issue a preliminary order indicating the chief's	3024
intent to issue a final order. The preliminary order shall clearly	3025
state the nature of the chief's proposed action and the findings	3026
on which it is based and shall state that the preliminary order	3027
becomes a final order thirty days after its issuance unless the	3028
person to whom the preliminary order is directed submits to the	3029
chief a written request for an informal hearing before the chief	3030
within that thirty-day period. At the hearing the person may	3031
present evidence as to why the preliminary order should be revoked	3032
or modified. Based upon the findings from the informal hearing,	3033
the chief shall revoke, issue, or modify and issue the preliminary	3034
order as a final order. A final order may be appealed under	3035
sections 1509.36 and 1509.37 of the Revised Code.	3036

Sec. 1509.225.  (A) Before being issued a registration	3037
certificate under section 1509.222 of the Revised Code, an	3038
applicant shall execute and file with the division of mineral	3039
resources management a surety bond for fifteen thousandone	3040
hundred thousand dollars to provide immediate compensation for	3041
damage and injury resulting from transporters' violations of	3042
sections 1509.22, 1509.222, and 1509.223 of the Revised Code, all	3043
rules and orders of the chief of the division of mineral resource	3044
management relating thereto, and all terms and conditions of the	3045
registration certificate imposed thereunder. The applicant may	3046
deposit with the chief, in lieu of a surety bond, cash in an	3047
amount equal to the surety bond as prescribed in this section, or	3048
negotiable certificates of deposit issued by any bank organized or	3049
transacting business in this state, or certificates of deposit	3050
issued by any building and loan association as defined in section	3051
1151.01 of the Revised Code, having a cash value equal to or	3052
greater than the amount of the surety bond as prescribed in this	3053
section. Cash or certificates of deposit shall be deposited upon	3054
the same terms as those upon which surety bonds may be deposited.	3055
If certificates of deposit are deposited with the chief in lieu of	3056
a surety bond, the chief shall require the bank or building and	3057
loan association that issued any such certificate to pledge	3058
securities of a cash value equal to the amount of the certificate	3059
that is in excess of the amount insured by any of the agencies and	3060
instrumentalities created under the "Federal Deposit Insurance	3061
Act," 64 Stat. 873 (1950), 12 U.S.C. 1811, as amended, and	3062
regulations adopted under it, including at least the federal	3063
deposit insurance corporation, bank insurance fund, and savings	3064
association insurance fund.	3065

Such securities shall be security for the repayment of the	3066
certificate of deposit. Immediately upon a deposit of cash or	3067
certificates with the chief, the chief shall deliver it to the	3068
treasurer of state who shall hold it in trust for the purposes for	3069
which it has been deposited.	3070

(B) The surety bond provided for in this section shall be	3071
executed by a surety company authorized to do business in this	3072
state. The chief shall not approve any bond until it is personally	3073
signed and acknowledged by both principal and surety, or as to	3074
either by an attorney in fact, with a certified copy of the power	3075
of attorney attached thereto. The chief shall not approve such a	3076
bond unless there is attached a certificate of the superintendent	3077
of insurance that the company is authorized to transact a fidelity	3078
and surety business in this state. All bonds shall be given in a	3079
form to be prescribed by the chief.	3080

(C) If a registered transporter is found liable for a	3081
violation of section 1509.22, 1509.222, or 1509.223 of the Revised	3082
Code or a rule, order, or term or condition of a certificate	3083
involving, in any case, damage or injury to persons or property,	3084
or both, the court may order the forfeiture of any portion of the	3085
bond, cash, or other securities required by this section in full	3086
or partial payment of damages to the person to whom the damages	3087
are due. The treasurer of state and the chief shall deliver the	3088
bond or any cash or other securities deposited in lieu of bond, as	3089
specified in the court's order, to the person to whom the damages	3090
are due; however, execution against the bond, cash, or other	3091
securities, if necessary, is the responsibility of the person to	3092
whom the damages are due. The chief shall not release the bond,	3093
cash, or securities required by this section except by court order	3094
or until two years after the date on which a registration is	3095
terminated.	3096

(D) This section does not preclude recourse under an	3097
insurance policy that is required by section 1509.222 of the	3098
Revised Code.	3099

Sec. 1509.23.  (A) Rules of theThe chief of the division of	3100
mineral resources management may specify, in consultation with the	3101
technical advisory council on oil and gas created in section	3102
1509.38 of the Revised Code, shall adopt rules that require the	3103
implementation and use of best operating practices that are	3104
recognized by the oil and gas industry to be followed in the	3105
drilling of wells and production of oil and gas for protection of	3106
publicthe health orand safety orof persons working at a well	3107
site and of the public and to preventminimize damage to natural	3108
resources, including specificationthe environment. The rules	3109
shall require a permittee and all persons working at a well to	3110
utilize those practices. In addition, the rules shall establish	3111
requirements for all of the following:	3112

(1) Appropriate drilling and extraction devices and	3113
techniques;	3114

(2) Minimum distances that wells and other excavations,	3115
structures, and equipment shall be located from water wells,	3116
streets, roads, highways, rivers, lakes, streams, ponds, other	3117
bodies of water, railroad tracks, public or private recreational	3118
areas, zoning districts, and buildings or other structures;	3119

(3) Other methods of operation;

3120

(4) Procedures, methods, and equipment and other requirements	3121
for equipment to prevent and contain discharges of oil from oil	3122
production facilities and oil drilling and workover facilities	3123
consistent with and equivalent in scope, content, and coverage to	3124
section 311(j)(1)(c) of the "Federal Water Pollution Control Act	3125
Amendments of 1972," 86 Stat. 886, 33 U.S.C.A. 1251, as amended,	3126
and regulations adopted under it.	3127

The rules adopted under this division shall not conflict with	3128
any provision of this chapter.	3129

(B) The chief, in consultation with the emergency response	3130
commission created in section 3750.02 of the Revised Code, shall	3131
adopt rules in accordance with Chapter 119. of the Revised Code	3132
that specify the information that shall be included in an	3133
electronic database that the chief shall create and host. The	3134
information shall be that which the chief considers to be	3135
appropriate for the purpose of responding to emergency situations	3136
that pose a threat to public health or safety or the environment.	3137
At thea minimum, the information shall include that which a	3138
person who is regulated under this chapter is required to submit	3139
under the "Emergency Planning and Community Right-To-Know Act of	3140
1986," 100 Stat. 1728, 42 U.S.C.A. 11001, and regulations adopted	3141
under it.	3142

In addition, the rules shall specify whether and to what	3143
extent the database and the information that it contains will be	3144
made accessible to the public. The rules shall ensure that the	3145
database will be made available via the internet or a system of	3146
computer disks to the emergency response commission and to every	3147
local emergency planning committee and fire department in this	3148
state.	3149

Sec. 1509.24.  The chief of the division of mineral resources	3150
management, with the approval of the technical advisory council on	3151
oil and gas created in section 1509.38 of the Revised Code, may	3152
shall adopt, amend, or rescind rules relative to minimum acreage	3153
requirements for drilling units and minimum distances from which	3154
between an existing well in a drilling unit and a new well that	3155
may be drilled or an existing well deepened, plugged back, or	3156
reopened to a source of supply different from the existing pool	3157
from boundaries of tracts,in that drilling units, and other wells	3158
for the purpose of conserving oil and gas reserves. Rulesunit. In	3159
addition, the rules shall address and attempt to accomplish all of	3160
the following:	3161

(A) Prevention of the waste of oil and gas reserves;

3162

(B) Protection of the health and safety of the public,	3163
employees of a permittee or operator, and workers at a well site;	3164

(C) Minimization of the impact on the environment in	3165
furtherance of the requirements established in this chapter and	3166
rules adopted under it and of the goals of the Safe Drinking Water	3167
Act.	3168

Rules adopted under this section and special orders made	3169
under section 1509.25 of the Revised Code shall apply only to new	3170
wells to be drilled or existing wells to be deepened, plugged	3171
back, or reopened to a source of supply different from the	3172
existing pool for the purpose of extracting oil or gas in their	3173
natural state.	3174

Sec. 1509.26. TheTwo or more owners of adjoining tracts may	3175
agree to pool suchthe tracts to form a drilling unit that	3176
conforms to the minimum acreage and distance requirements of the	3177
division of mineral resources management established in rules	3178
adopted under section 1509.24 or 1509.25 of the Revised Code. Such	3179
The agreement shall be in writing, a copy of which shall be	3180
submitted to the division with the application for a permit	3181
required by section 1509.05 of the Revised Code. Parties to the	3182
agreement shall designate one of their number as the applicant for	3183
suchthe permit.	3184

Sec. 1509.30.  The holder of a royalty interest in any	3185
natural gas well may request the ownerpermittee to report to him	3186
the holder, no more frequently than the payment period in histhe	3187
holder's contract with the ownerpermittee, any or all of the	3188
following:	3189

(A) The volume of natural gas for which hethe holder was or	3190
is being paid for the most recent period in histhe holder's	3191
contract with the ownerpermittee, and for any other previous	3192
periods within two years of the date of production for which the	3193
ownerpermittee has not already given himthe holder such a report	3194
within the most recent six months;	3195

(B) The price per thousand cubic feet paid to the holder for	3196
suchthe gas;	3197

(C) The volume of natural gas whichthat was shown to have	3198
passed through the owner'spermittee's meter for the field	3199
containing the holder's well.	3200

The ownerpermittee shall preserve records of such volume for	3201
at least twothree years after the date the record is made	3202
termination of the lease agreement with the holder. Upon receipt	3203
by the ownerpermittee or histhe permittee's agent of a request	3204
by the holder pursuant to this section, the ownerpermittee shall	3205
supply the information to the holder within fifteen days, or the	3206
end of the current payment period in the contract, whichever is	3207
laterfourteen days of receipt of the request.	3208

If the holder's well is metered, the ownerpermittee shall in	3209
such a report also inform the holder of the volume of natural gas	3210
whichthat was shown to have passed through suchthe meter during	3211
the period.	3212

The volume of gas required to be reported by this section	3213
shall be indicated on the basis of a standard cubic foot of gas.	3214

Sec. 1509.31. (A) Whenever the entire interest of an oil and	3215
gas lease is assigned or otherwise transferred, the assignor or	3216
transferor shall notify the holders of the royalty interests, and,	3217
if a well or wells exist on the lease, the assignor or transferor	3218
also shall notify the division of mineral resources management, of	3219
the name and address of the assignee or transferee by certified	3220
mail, return receipt requested, not later than thirty days after	3221
the date of the assignment or transfer. When notice of any such	3222
assignment or transfer is required to be provided to the division,	3223
it shall be provided on a form prescribed and provided by the	3224
division and verified by both the assignor or transferor and by	3225
the assignee or transferee and shall be accompanied by a	3226
nonrefundable fee of one hundred dollars for each well. The notice	3227
form applicable to assignments or transfers of a well to the owner	3228
of the surface estate of the tract on which the well is located	3229
shall contain a statement informing the landowner that the well	3230
may require periodic servicing to maintain its productivity or to	3231
maintain the structural integrity of its plug; that, upon	3232
assignment or transfer of the well to the landowner, the landowner	3233
becomes responsible for compliance with the requirements of this	3234
chapter and rules adopted under it, including, without limitation,	3235
the proper disposal of brine obtained from the well, the plugging	3236
of the well when it becomes incapable of producing oil or gas, and	3237
the restoration of the well site; and that, upon assignment or	3238
transfer of the well to the landowner, the landowner becomes	3239
responsible for the costs of compliance with the requirements of	3240
this chapter and rules adopted under it and the costs for	3241
operating and servicing the well.	3242

(B) When the entire interest of a well is proposed to be	3243
assigned or otherwise transferred to the landowner for use as an	3244
exempt domestic well, the owner of the well who has been issued a	3245
permit under this chapter for the well shall submit to the chief	3246
an application for the assignment or transfer that contains all	3247
documents that the chief requires and a nonrefundable fee of one	3248
hundred dollars. The application for such an assignment or	3249
transfer shall be prescribed and provided by the chief. The chief	3250
may approve the application if the application is accompanied by a	3251
release of all of the oil and gas leases that are included in the	3252
applicable formation of the drilling unit, the release is in a	3253
form such that the well ownership merges with the fee simple	3254
interest of the surface tract, and the release is in a form that	3255
may be recorded. However, if the owner of the well does not	3256
release the oil and gas leases associated with the well that is	3257
proposed to be assigned or otherwise transferred or if the fee	3258
simple tract that results from the merger of the well ownership	3259
with the fee simple interest of the surface tract is less than	3260
five acres, the proposed exempt domestic well owner shall post a	3261
five thousand dollar bond with the division of mineral resources	3262
management prior to the assignment or transfer of the well to	3263
ensure that the well will be properly plugged. The chief, for good	3264
cause, may modify the requirements of this section governing the	3265
assignment or transfer of the interests of a well to the	3266
landowner. Upon the assignment or transfer of the well, the owner	3267
of an exempt domestic well is subject to the severance tax levied	3268
under section 5749.02 of the Revised Code and all applicable fees	3269
established in this chapter.	3270

(C) The ownerperson holding a permit under section 1509.05	3271
of the Revised Code is responsible for all obligations and	3272
liabilities imposed by this chapter and any rules, orders, and	3273
terms and conditions of a permit adopted or issued under it, and	3274
no assignment or transfer by the ownerperson relieves the owner	3275
person of the obligations and liabilities until and unless the	3276
assignee or transferee files with the division the information	3277
described in divisions (A)(1), (2), (3), (4), (5), (10), (11), and	3278
(12), and (13) of section 1509.06 of the Revised Code; obtains	3279
liability insurance coverage required by section 1509.07 of the	3280
Revised Code, except when none is required by that section; and	3281
executes and files a surety bond, negotiable certificates of	3282
deposit or irrevocable letters of credit, or cash, as described in	3283
that section. Instead of a bond, but only upon acceptance by the	3284
chief of the division of mineral resources management, the	3285
assignee or transferee may file proof of financial responsibility,	3286
described in section 1509.07 of the Revised Code. Section 1509.071	3287
of the Revised Code applies to the surety bond, cash, and	3288
negotiable certificates of deposit and irrevocable letters of	3289
credit described in this section. Unless the chief approves a	3290
modification, each assignee or transferee shall operate in	3291
accordance with the plans and information filed by the permit	3292
holder pursuant to section 1509.06 of the Revised Code.	3293

(D) If a mortgaged property that is being foreclosed is	3294
subject to an oil or gas lease, pipeline agreement, or other	3295
instrument related to the production or sale of oil or natural gas	3296
and the lease, agreement, or other instrument was recorded	3297
subsequent to the mortgage, and if the lease, agreement, or other	3298
instrument is not in default, the oil or gas lease, pipeline	3299
agreement, or other instrument, as applicable, has priority over	3300
all other liens, claims, or encumbrances on the property so that	3301
the oil or gas lease, pipeline agreement, or other instrument is	3302
not terminated or extinguished upon the foreclosure sale of the	3303
mortgaged property. If the owner of the mortgaged property was	3304
entitled to oil and gas royalties before the foreclosure sale, the	3305
oil or gas royalties shall be paid to the purchaser of the	3306
foreclosed property.	3307

Sec. 1509.32.  Any person adversely affected may file with	3308
the chief of the division of mineral resources management a	3309
written complaint alleging failure to restore disturbed land	3310
surfaces in violation of section 1509.072 or 1509.22 of the	3311
Revised Code or a rule adopted thereunder.	3312

UponNot later than five days after receipt of a complaint,	3313
the chief shall cause an investigation to be made of the lands	3314
where the alleged violation has occurred and. Not later than	3315
thirty days after receipt of the complaint, the chief shall	3316
prepare and complete a report that discusses in detail the chief's	3317
findings and shall make the report available to the public. The	3318
chief shall send copies of the investigation report to the person	3319
who filed the complaint and to the ownerperson who, according to	3320
the records of the chief, is responsible for the restoration of	3321
the site. Upon finding a violation, the chief shall order the	3322
ownerresponsible person to eliminate the violation within a	3323
specified timeimmediately. IfThe responsible person shall	3324
complete the restoration of the site within thirty days after the	3325
issuance of the order unless the chief authorizes a longer period	3326
of time because weather conditions prevented the completion of the	3327
site restoration within the thirty-day period.	3328

If the ownerperson fails to eliminate the violation within	3329
the time specifiedauthorized, the chief mayshall request the	3330
prosecuting attorney of the county in which the violation occurs	3331
or the attorney general to bring appropriate action to secure	3332
compliance with such sectionsthe applicable section or rule. If	3333
the chief fails to bring an appropriate action to secure	3334
compliance with such sections within twenty days after the time	3335
specifiedNotwithstanding an order issued under this section or	3336
any other action or inaction by the chief, the person filing the	3337
complaint may request the prosecuting attorney of the county in	3338
which the violation occurs to bring an appropriate action to	3339
secure compliance with such sectionsthe applicable section or	3340
rule. The division of mineral resources management mayshall	3341
cooperate with any state or local agency to provide technical	3342
advice or minimum standards for the restoration of various soils	3343
and land surfaces or to assist in any investigation.	3344

Sec. 1509.33.  (A) Whoever violates sections 1509.01 to	3345
1509.31 of the Revised Code, or any rules adopted or orders or	3346
terms or conditions of a permit or registration certificate issued	3347
pursuant to these sections for which no specific penalty is	3348
provided in this section, shall pay a civil penalty of not less	3349
than two hundred fifty dollars nor more than four thousandone	3350
million dollars for each offense.	3351

(B) Whoever violates section 1509.221 of the Revised Code or	3352
any rules adopted or orders or terms or conditions of a permit	3353
issued thereunder shall pay a civil penalty of not moreless than	3354
two thousand five hundred dollars nor more than one million	3355
dollars for each violation.	3356

(C) Whoever violates division (D) of section 1509.22 or	3357
division (A)(1) of section 1509.222 of the Revised Code shall pay	3358
a civil penalty of not less than twoten thousand five hundred	3359
dollars nor more than twenty thousandone million dollars for each	3360
violation.	3361

(D) Whoever violates division (C)(2) of section 1509.071 or	3362
division (A) or (B) of section 1509.22 of the Revised Code shall	3363
pay a civil penalty of not less than two thousand five hundred	3364
dollars nor more than ten thousandone million dollars for each	3365
violation.	3366

(E) Whoever violates division (A) of section 1509.223 of the	3367
Revised Code shall pay a civil penalty of not less than five	3368
hundred dollars nor more than ten thousand dollars for each	3369
violation.	3370

(F) Whoever violates section 1509.072 of the Revised Code or	3371
any rules adopted or orders issued to administer, implement, or	3372
enforce that section shall pay a civil penalty of not less than	3373
five hundred dollars nor more than five thousand dollars for each	3374
violation.	3375

(G) Whoever violates division (A) of section 1509.14 of the	3376
Revised Code shall pay a civil penalty of not less than one	3377
thousand dollars for each violation.	3378

(H) In addition to any other penalties provided in this	3379
chapter, whoever violates division (B) of section 1509.22 or	3380
division (A)(1) of section 1509.222 or knowingly violates division	3381
(A) of section 1509.223 of the Revised Code is liable for any	3382
damage or injury caused by the violation and for the cost of	3383
rectifying the violation and conditions caused by the violation.	3384
If two or more persons knowingly violate one or more of suchthose	3385
divisions in connection with the same event, activity, or	3386
transaction, they are jointly and severally liable under this	3387
division.	3388

(H)(I) The attorney general, upon the request of the chief of	3389
the division of mineral resources management, shall commence an	3390
action under this section against any person who violates sections	3391
1509.01 to 1509.31 of the Revised Code, or any rules adopted or	3392
orders or terms or conditions of a permit or registration	3393
certificate issued pursuant to these sections. Any action under	3394
this section is a civil action, governed by the Rules of Civil	3395
Procedure and other rules of practice and procedure applicable to	3396
civil actions. The remedy provided in this division is cumulative	3397
and concurrent with any other remedy provided in this chapter, and	3398
the existence or exercise of one remedy does not prevent the	3399
exercise of any other, except that no. A person shallmay be	3400
subject to both a civil penalty under division (A), (B), (C), or	3401
(D) of this section and a criminal penalty under section 1509.99	3402
of the Revised Code for the same offense.	3403

Sec. 1509.34. (A) If a permittee fails to pay the fees	3404
imposed by this chapter or the taxes levied on the severance of	3405
oil and gas under section 5749.02 of the Revised Code, or if the	3406
chief of the division of mineral resources management incurs costs	3407
under division (E) of section 1509.071 of the Revised Code to	3408
correct conditions associated with the owner's well that the chief	3409
reasonably has determined are causing imminent health or safety	3410
risks, the division of mineral resources management shall have a	3411
priority lien against that permittee's interest in the applicable	3412
well in front of all other creditors for the amount of any such	3413
unpaid fees and taxes and costs incurred. The chief shall file a	3414
statement in the office of the county recorder of the county in	3415
which the applicable well is located of the amount of the unpaid	3416
fees and taxes and costs incurred as described in this division.	3417
The statement shall constitute a lien on the permittee's interest	3418
in the well as of the date of the filing. The lien shall remain in	3419
force so long as any portion of the lien remains unpaid or until	3420
the chief issues a certificate of release of the lien. If the	3421
chief issues a certificate of release of the lien, the chief shall	3422
file the certificate of release in the office of the applicable	3423
county recorder.	3424

(B) The chief promptly shall issue a certificate of release	3425
of a lien under either of the following circumstances:	3426

(1) Upon the repayment in full of the amount of unpaid fees	3427
imposed by this chapter or taxes levied on the severance of oil	3428
and gas under section 5749.02 of the Revised Code or costs	3429
incurred by the chief under division (E) of section 1509.071 of	3430
the Revised Code to correct conditions associated with the	3431
permittee's well that the chief reasonably has determined are	3432
causing imminent health or safety risks;	3433

(2) Any other circumstance that the chief determines to be in	3434
the best interests of the state.	3435

(C) The chief may modify the amount of a lien under this	3436
section. If the chief modifies a lien, the chief shall file a	3437
statement in the office of the county recorder of the applicable	3438
county of the new amount of the lien.	3439

(D) A permittee regarding which the division has recorded a	3440
lien against the permittee's interest in a well in accordance with	3441
this section shall not transfer a well, a lease, or mineral rights	3442
to another permittee or person until the chief issues a	3443
certificate of release for each lien against the permittee's	3444
interest in the well.	3445

(E) All money from the collection of liens under this section	3446
shall be deposited in the state treasury to the credit of the oil	3447
and gas well fund created in section 1509.02 of the Revised Code.	3448

Sec. 1509.35. (A) There is hereby created an oil and gas	3449
commission consisting of fivenine members appointed by the	3450
governor. Terms of office shall be for fivethree years,	3451
commencing on the fifteenth day of October and ending on the	3452
fourteenth day of October, except that the terms of the first five	3453
members of the board shall be for one, two, three, four, and five	3454
years, respectively, as designated by the governor at the time of	3455
the appointment. Each member shall hold office from the date of	3456
appointment until the end of the term for which the member was	3457
appointed. Any member appointed to fill a vacancy occurring prior	3458
to the expiration of the term for which the member's predecessor	3459
was appointed shall hold office for the remainder of suchthat	3460
term. Any member shall continue in office subsequent to the	3461
expiration date of the member's term until a successor takes	3462
office, or until a period of sixty days has elapsed, whichever	3463
occurs first. Each vacancy occurring on the commission shall be	3464
filled by appointment within sixty days after the vacancy occurs.	3465
One of the appointees to the commission shall be a person who, by	3466
reason of the person's previous vocation, employment, or	3467
affiliations, can be classed as a representative of a major	3468
petroleum company. OneFive of the appointees to the commission	3469
shall be a personpersons who, by reason of the person'stheir	3470
previous vocationvocations, employment, or affiliations, can be	3471
classed as a representativerepresentatives of the public. One of	3472
the appointees to the commission shall be a person who, by reason	3473
of the person's previous training and experience, can be classed	3474
as a representative of independent petroleum operators. One of the	3475
appointees to the commission shall be a person who, by reason of	3476
the person's previous training and experience, can be classed as	3477
one learned and experienced in oil and gas law. One of the	3478
appointees to the commission shall be a person who, by reason of	3479
the person's previous training and experience, can be classed as	3480
one learned and experienced in geology. Not more than threefive	3481
members shall be members of the same political party. This	3482
division does not apply to temporary members appointed under	3483
division (C) of this section.	3484

(B) ThreeFive members constitute a quorum and no action of	3485
the commission is valid unless it has the concurrence of at least	3486
a majority of the members voting on that action. The commission	3487
shall keep a record of its proceedings.	3488

(C) If the chairperson of the commission determines that a	3489
quorum cannot be obtained for the purpose of considering a matter	3490
that will be before the commission because of vacancies or recusal	3491
of its members, the chairperson may contact the technical advisory	3492
council on oil and gas created in section 1509.38 of the Revised	3493
Code and request a list of members of the council who may serve as	3494
temporary members of the commission. Using the list provided by	3495
the council, the chairperson may appoint temporary members to the	3496
commission. The appointment of temporary members shall be for only	3497
the matter for which a quorum cannot be obtained. The number of	3498
temporary members appointed by the chairperson shall not exceed	3499
the number that is necessary to obtain a quorum for the matter. A	3500
temporary member of the commission has the same authority, rights,	3501
and obligations as a member of the commission, including the right	3502
to compensation and other expenses as provided in this section.	3503
The authority, rights, and obligations of a temporary member cease	3504
when the temporary member's service on the commission ends.	3505

(D) Each member shall be paid an amount fixed pursuant to	3506
division (J) of section 124.15 of the Revised Code per diem when	3507
actually engaged in the performance of work as a member and when	3508
engaged in travel necessary in connection with suchthat work. In	3509
addition to such compensation each member shall be reimbursed for	3510
all traveling, hotel, and other expenses necessarily incurred in	3511
the performance of work as a member.	3512

(E) The commission shall select from among its members a	3513
chairperson, a vice-chairperson, and a secretary. These officers	3514
shall serve for terms of one year.	3515

(F) The governor may remove any member of the commission from	3516
office for inefficiency, neglect of duty, malfeasance,	3517
misfeasance, or nonfeasance.	3518

(G) The commission, in accordance with Chapter 119. of the	3519
Revised Code, shall adopt rules to govern its procedure.	3520

Sec. 1509.36.  Any person claiming to be aggrieved or	3521
adversely affected by an order by the chief of the division of	3522
mineral resources management may appeal to the oil and gas	3523
commission for an order vacating or modifying suchthe order.	3524

The person so appealing to the commission shall be known as	3525
appellant and the chief shall be known as appellee. Appellant and	3526
appellee shall be deemed to be parties to the appeal.	3527

The appeal shall be in writing and shall set forth the order	3528
complained of and the grounds upon which the appeal is based. The	3529
appeal shall be filed with the commission within thirty days after	3530
the date upon which the appellant received notice by registered	3531
mail of the making of the order complained of. Notice of the	3532
filing of the appeal shall be filed with the chief within three	3533
days after the appeal is filed with the commission.	3534

Upon the filing of the appeal the commission promptly shall	3535
fix the time and place at which the hearing on the appeal will be	3536
held, and shall give the appellant and the chief at least ten	3537
thirty days' written notice thereof by mail. The commission may	3538
postpone or continue any hearing upon its own motion or upon	3539
application of appellant or of the chief.	3540

The filing of an appeal provided for in this section does not	3541
automatically suspend or stay execution of the order appealed	3542
from, but upon application by the appellant the commission may	3543
suspend or stay such execution pending determination of the appeal	3544
upon such terms as the commission considers proper.	3545

Either party to the appeal or any interested person who,	3546
pursuant to commission rules has been granted permission to	3547
appear, may submit such evidence as the commission considers	3548
admissible.	3549

For the purpose of conducting a hearing on an appeal, the	3550
commission may require the attendance of witnesses and the	3551
production of books, records, and papers, and it may, and at the	3552
request of any party it shall, issue subpoenas for witnesses or	3553
subpoenas duces tecum to compel the production of any books,	3554
records, or papers, directed to the sheriffs of the counties where	3555
such witnesses are found. The subpoenas shall be served and	3556
returned in the same manner as subpoenas in criminal cases are	3557
served and returned. The fees of sheriffs shall be the same as	3558
those allowed by the court of common pleas in criminal cases.	3559
Witnesses shall be paid the fees and mileage provided for under	3560
section 119.094 of the Revised Code. Such fees and mileage	3561
expenses incurred at the request of the appellant shall be paid in	3562
advance by the appellant, and the remainder of suchthose expenses	3563
shall be paid out of funds appropriated for the expenses of the	3564
division of mineral resources management.	3565

In case of disobedience or neglect of any subpoena served on	3566
any person, or the refusal of any witness to testify to any matter	3567
regarding which the witness may be lawfully interrogated, the	3568
court of common pleas of the county in which suchthe	3569
disobedience, neglect, or refusal occurs, or any judge thereof, on	3570
application of the commission or any member thereof, shall compel	3571
obedience by attachment proceedings for contempt as in the case of	3572
disobedience of the requirements of a subpoena issued from such	3573
that court or a refusal to testify therein. Witnesses at such	3574
hearings shall testify under oath, and any member of the	3575
commission may administer oaths or affirmations to persons who so	3576
testify.	3577

At the request of any party to the appeal, a stenographic	3578
record of the testimony and other evidence submitted shall be	3579
taken by an official court shorthand reporter at the expense of	3580
the party making the request therefor. SuchThe record shall	3581
include all of the testimony and other evidence and the rulings on	3582
the admissibility thereof presented at the hearing. The commission	3583
shall pass upon the admissibility of evidence, but any party may	3584
at the time object to the admission of any evidence and except to	3585
the rulings of the commission thereon, and if the commission	3586
refuses to admit evidence the party offering same may make a	3587
proffer thereof, and suchthe proffer shall be made a part of the	3588
record of suchthe hearing.	3589

If upon completion of the hearing the commission finds that	3590
the order appealed from was lawful and reasonable, it shall make a	3591
written order affirming the order appealed from; if the commission	3592
finds that the order was unreasonable or unlawful, it shall make a	3593
written order vacating the order appealed from and making the	3594
order that it finds the chief should have made. Every order made	3595
by the commission shall contain a written finding by the	3596
commission of the facts upon which the order is based.	3597

Notice of the making of the order shall be given forthwith to	3598
each party to the appeal by mailing a certified copy thereof to	3599
each such party by certified mail.	3600

The order of the commission is final unless vacated by the	3601
court of common pleas of Franklin county in an appeal as provided	3602
for in section 1509.37 of the Revised Code. Sections 1509.01 to	3603
1509.37 of the Revised Code, providing for appeals relating to	3604
orders by the chief or by the commission, or relating to rules	3605
adopted by the chief, do not constitute the exclusive procedure	3606
that any person who believes the person's rights to be unlawfully	3607
affected by those sections or any official action taken thereunder	3608
must pursue in order to protect and preserve those rights, nor do	3609
those sections constitute a procedure that that person must pursue	3610
before that person may lawfully appeal to the courts to protect	3611
and preserve those rights.	3612

Sec. 1509.38. There is hereby created in the division of	3613
mineral resources management a technical advisory council on oil	3614
and gas, which shall consist of eight members to be appointed by	3615
the governor with the advice and consent of the senate. Three	3616
members shall be independent oil or gas producers, operators, or	3617
their representatives, operating and producing primarily in this	3618
state, three members shall be oil or gas producers, operators, or	3619
their representatives having substantial oil and gas producing	3620
operations in this state and at least one other state, one member	3621
shall represent the public, and one member shall represent persons	3622
having landowners' royalty interests in oil and gas production.	3623
All members shall be residents of this state, and all members,	3624
except the members representing the public and persons having	3625
landowners' royalty interests, shall have at least five years of	3626
practical or technical experience in oil or gas drilling and	3627
production. Not more than one member may represent any one	3628
company, producer, or operator.	3629

Terms of office shall be for three years, commencing on the	3630
first day of February and ending on the thirty-first day of	3631
January. Each member shall hold office from the date of	3632
appointment until the end of the term for which the member was	3633
appointed. A vacancy in the office of a member shall be filled by	3634
the governor, with the advice and consent of the senate. Any	3635
member appointed to fill a vacancy occurring prior to the	3636
expiration of the term for which the member's predecessor was	3637
appointed shall hold office for the remainder of that term. Any	3638
member shall continue in office subsequent to the expiration date	3639
of the member's term until the member's successor takes office, or	3640
until a period of sixty days has elapsed, whichever occurs first	3641
There is hereby created in the division of mineral resources	3642
management a technical advisory council on oil and gas, which	3643
shall consist of the five members to be appointed by the governor	3644
with the advice and consent of the senate. One of the members	3645
shall be a person who, by reason of the person's previous training	3646
and experience, is a representative of independent petroleum	3647
operators. One of the members shall be a person who, by reason of	3648
the person's previous training and experience, is a person learned	3649
and experienced in oil and gas law. One of the members shall be a	3650
person who, by reason of the person's previous training and	3651
experience, is a person learned and experienced in geology. Two of	3652
the members shall be persons who, by reason of their previous	3653
vocations, employment, or affiliations, are representatives of the	3654
public. All members shall be residents of this state, and all	3655
members, except the members representing the public, shall have at	3656
least five years of practical or technical experience in oil or	3657
gas drilling and production.	3658

Terms of office shall be for three years, commencing on the	3659
first day of February and ending on the thirty-first day of	3660
January. A member shall hold office from the date of appointment	3661
until the end of the term for which the member was appointed. A	3662
vacancy in the office of a member shall be filled by the governor,	3663
with the advice and consent of the senate. A member appointed to	3664
fill a vacancy occurring prior to the expiration of the term for	3665
which the member's predecessor was appointed shall hold office for	3666
the remainder of that term. A member shall continue in office	3667
subsequent to the expiration date of the member's term until the	3668
member's successor takes office or until a period of sixty days	3669
has elapsed, whichever occurs first.	3670

The council shall select from among its members a	3671
chairperson, a vice-chairperson, and a secretary. All members are	3672
entitled to their actual and necessary expenses incurred in the	3673
performance of their duties as members, payable from the	3674
appropriations for the division.	3675

The governor may remove any member for inefficiency, neglect	3676
of duty, or malfeasance in office.	3677

The council shall hold at least one regular meeting in each	3678
quarter of a calendar year and shall keep a record of its	3679
proceedings. Special meetings may be called by the chairperson and	3680
shall be called by the chairperson upon receipt of a written	3681
request signed by two or more members of the council. A written	3682
notice of the time and place of each meeting shall be sent to each	3683
member of the council. Five members constitute a quorum, and no	3684
action of the council is valid unless five members concur.	3685

The council, when requested by the chief of the division of	3686
mineral resources management, shall consult with and advise the	3687
chief and perform other duties that may be lawfully delegated to	3688
it by the chief. The council may participate in hearings held by	3689
the chief under this chapter and has powers of approval as	3690
provided in sectionssection 1509.24 and 1509.25 of the Revised	3691
Code. The council shall conduct the activities required, and	3692
exercise the authority granted, under Chapter 1510. of the Revised	3693
Code.	3694

The council, upon receiving a request from the chairperson of	3695
the oil and gas commission under division (C) of section 1509.35	3696
of the Revised Code, immediately shall prepare and provide to the	3697
chairperson a list of its members who may serve as temporary	3698
members of the oil and gas commission as provided in that	3699
division.	3700

Sec. 1509.50. In addition to paying the applicable taxes	3701
levied on the severance of oil and gas under section 5749.02 of	3702
the Revised Code, an owner shall pay an oil and gas regulatory	3703
cost recovery assessment of ten cents per barrel of oil or	3704
one-half cent per one thousand cubic feet of natural gas, as	3705
applicable, that is sold from all of the owner's wells located in	3706
this state. The owner shall collect from each person who has a	3707
revenue interest in a well of the owner that person's pro rata	3708
share of the assessment.	3709

The minimum amount of the assessment for every quarterly	3710
period, which periods are specified in section 5749.06 of the	3711
Revised Code, shall be either the amount of fifteen dollars	3712
multiplied by the total number of the owner's wells or the amount	3713
of the owner's severance taxes levied under section 5749.02 of the	3714
Revised Code plus the oil and gas regulatory cost recovery	3715
assessment imposed by this section, whichever is greater. An owner	3716
shall pay the assessment at the time and using the procedures that	3717
are established in section 5749.06 of the Revised Code for the	3718
collection of the taxes levied on the severance of oil and gas	3719
under section 5749.02 of the Revised Code. All money collected	3720
pursuant to this section shall be deposited in the state treasury	3721
to the credit of the oil and gas well fund created in section	3722
1509.02 of the Revised Code.	3723

The oil and gas regulatory cost recovery assessment imposed	3724
by this section shall be treated the same and equivalent for all	3725
purposes as the taxes levied on the severance of oil and gas under	3726
section 5749.02 of the Revised Code. However, the assessment	3727
imposed by this section is not a tax under Chapter 5749. of the	3728
Revised Code.	3729

Sec. 1509.99.  (A) Whoever violates sections 1509.01 to	3730
1509.31 of the Revised Code or any rules adopted or orders or	3731
terms or conditions of a permit issued pursuant to these sections	3732
for which no specific penalty is provided in this section shall be	3733
fined not less than one hundred nor more than one thousand dollars	3734
for a first offense; for each subsequent offense suchthe person	3735
shall be fined not less than two hundred nor more than two	3736
thousand dollars.	3737

(B) Whoever violates section 1509.221 of the Revised Code or	3738
any rules adopted or orders or terms or conditions of a permit	3739
issued thereunder shall be fined not more than five thousand	3740
dollars for each day of violation.	3741

(C) Whoever knowingly violates section 1509.072, division	3742
(A), (B), or (D) of section 1509.22, division (A)(1) or (C) of	3743
section 1509.222, or division (A) or (D) of section 1509.223 of	3744
the Revised Code or any rules adopted or orders issued under	3745
division (C) of section 1509.22 or rules adopted or orders or	3746
terms or conditions of a registration certificate issued under	3747
division (E) of section 1509.222 of the Revised Code shall be	3748
fined ten thousand dollars or imprisoned for six months, or both	3749
for a first offense; for each subsequent offense suchthe person	3750
shall be fined twenty thousand dollars or imprisoned for two	3751
years, or both. Whoever negligently violates suchthose divisions,	3752
sections, rules, orders, or terms or conditions of a registration	3753
certificate shall be fined not more than five thousand dollars.	3754

(D) Whoever violates division (C) of section 1509.223 of the	3755
Revised Code shall be fined not more than five hundred dollars for	3756
a first offense nor more than one thousand dollars for a	3757
subsequent offense.	3758

(E) The prosecuting attorney of the county in which the	3759
offense was committed or the attorney general may prosecute an	3760
action under this section.	3761

Sec. 1565.07.  The superintendent in charge of a mine shall	3762
direct the mine foreperson in such manner as is necessary to	3763
secure compliance with this chapter and Chapters 1561., 1563., and	3764
1567. and sectionssection 1509.18 and 1509.19 of the Revised	3765
Code. The superintendent may act as mine foreperson, but if the	3766
superintendent does so act regularly, the superintendent shall	3767
obtain a certificate from the chief of the division of mineral	3768
resources management in the same manner as the certification of	3769
mine foreperson is obtained.	3770

A person designated as a superintendent of an underground	3771
coal mine after January 1, 1977, shall, within six months after	3772
being so designated, demonstrate to the chief that the person has	3773
knowledge of the mining laws of this state governing the operation	3774
of underground coal mines either by presenting evidence that the	3775
person has passed a mine foreperson examination given by the chief	3776
or an examination given by the chief concerning the laws of this	3777
state governing the operation of underground coal mines.	3778

No person shall refuse or neglect to comply with this	3779
section.	3780

Sec. 1565.13.  In case of an injury to person or property,	3781
occasioned by a violation of this chapter and Chapters 1561.,	3782
1563., and 1567., and sectionssection 1509.18 and 1509.19 of the	3783
Revised Code, or any failure to comply with suchthose chapters or	3784
sectionsthat section, by any operator of a mine, a right of	3785
action shall accrue to the person injured, for any direct damage	3786
hethe person injured has sustained thereby. In case of loss of	3787
life by reason of such failure or neglect, a right of action shall	3788
accrue to the widow, and children, or if there are none, then to	3789
the parents and next of kin, of the person whose death was so	3790
caused, for like recovery of damages for the injury they have	3791
sustained. Any operator of a mine who has complied with Chapter	3792
4123. of the Revised Code, is exempt as provided in section	3793
4123.74 of the Revised Code, and not liable for damages at common	3794
law or by statute for injury or death of any employee.	3795

Sec. 1571.05.  (A) Whenever any part of a gas storage	3796
reservoir or any part of its protective area underlies any part of	3797
a coal mine, or is, or within nine months is expected or intended	3798
to be, within two thousand linear feet of the boundary of a coal	3799
mine that is operating in a coal seam any part of which extends	3800
over any part of the storage reservoir or its protective area, the	3801
operator of suchthe reservoir, if the reservoir operator or some	3802
other reservoir operator has not theretofore done so, shall:	3803

(1) Use every known method that is reasonable under the	3804
circumstance for discovering and locating all wells drilled within	3805
the area of suchthe reservoir or its protective area that	3806
underlie any part of suchthe coal mine or its protective area;	3807

(2) Plug or recondition all known wells drilled within the	3808
area of suchthe reservoir or its protective area that underlie	3809
any part of suchthe coal mine.	3810

(B) Whenever an operator of a gas storage reservoir is	3811
notified by the operator of a coal mine, as provided in division	3812
(B) of section 1571.03 of the Revised Code, that suchthe coal	3813
mine operator believes that part of the boundary of suchthe mine	3814
is within two thousand linear feet of a well that is drilled	3815
through the horizon of suchthe coal mine and into or through the	3816
storage stratum or strata of suchthe reservoir within the	3817
boundary of suchthe reservoir or within its protective area, such	3818
the reservoir operator shall plug or recondition suchthe well as	3819
in this section prescribed, unless it is agreed in a conference or	3820
is ordered by the chief of the division of mineral resources	3821
management after a hearing, as provided in section 1571.10 of the	3822
Revised Code, that the well referred to in the notice is not such	3823
a well as is described in division (B) of section 1571.03 of the	3824
Revised Code.	3825

Whenever an operator of a gas storage reservoir is notified	3826
by the operator of a coal mine as provided in division (C) or (D)	3827
of section 1571.03 of the Revised Code, that part of the boundary	3828
of suchthe mine is, or within nine months is intended or expected	3829
to be, within two thousand linear feet of a well that is drilled	3830
through the horizon of suchthe mine and into or through the	3831
storage stratum or strata of suchthe reservoir within the	3832
boundary of suchthe reservoir or within its protective area, such	3833
the reservoir operator shall plug or recondition suchthe well as	3834
in this section prescribed.	3835

Whenever the operator of a coal mine considers that the use	3836
of a well such as in this section described, if used for injecting	3837
gas into, or storing gas in, or removing gas from, a gas storage	3838
reservoir, would be hazardous to the safety of persons or property	3839
on or in the vicinity of the premises of suchthe coal mine or	3840
suchthe reservoir or well, the coal mine operator may file with	3841
the division objections to the use of suchthe well for such	3842
purposes, and a request that a conference be held as provided in	3843
section 1571.10 of the Revised Code, to discuss and endeavor to	3844
resolve by mutual agreement whether or not suchthe well shall or	3845
shall not be used for such purposes, and whether or not suchthe	3846
well shall be reconditioned, inactivated, or plugged. SuchThe	3847
request shall set forth the mine operator's reasons for such	3848
objections. If no approved agreement is reached in suchthe	3849
conference, the gas storage well inspector shall within ten days	3850
after the termination of suchthe conference, file with the chief	3851
a request that the chief hear and determine the matters considered	3852
at the conference as provided in section 1571.10 of the Revised	3853
Code. Upon conclusion of the hearing, the chief shall find and	3854
determine whether or not the safety of persons or of the property	3855
on or in the vicinity of the premises of suchthe coal mine, or	3856
suchthe reservoir, or suchthe well requires that suchthe well	3857
be reconditioned, inactivated, or plugged, and shall make an order	3858
consistent with suchthat determination, provided that the chief	3859
shall not order a well plugged unless the chief first finds that	3860
there is underground leakage of gas therefrom.	3861

The plugging or reconditioning of each well described in a	3862
notice from a coal mine operator to a reservoir operator as	3863
provided in division (B) of section 1571.03 of the Revised Code,	3864
which must be plugged or reconditioned, shall be completed within	3865
such time as the gas storage well inspector may fix in the case of	3866
each such well. The plugging or reconditioning of each well	3867
described in a notice from a coal mine operator to a reservoir	3868
operator as provided in division (C) of section 1571.03 of the	3869
Revised Code, which must be plugged or reconditioned, shall be	3870
completed by the time suchthe well, by reason of the extension of	3871
the boundary of suchthe coal mine, is within two thousand linear	3872
feet of any part of the boundary of suchthe mine. The plugging or	3873
reconditioning of each well described in a notice from a coal mine	3874
operator to a reservoir operator, as provided in division (D) of	3875
section 1571.03 of the Revised Code, which must be plugged or	3876
reconditioned, shall be completed by the time suchthe well, by	3877
reason of the opening of suchthe new mine, is within two thousand	3878
linear feet of any part of the boundary of suchthe new mine. A	3879
reservoir operator who is required to complete the plugging or	3880
reconditioning of a well within a period of time fixed as in this	3881
division prescribed, may prior to the end of suchthat period of	3882
time, notify the division and the mine operator from whom the	3883
reservoir operator received a notice as provided in division (B),	3884
(C), or (D) of section 1571.03 of the Revised Code, in writing by	3885
registered mail, that the completion of the plugging or	3886
reconditioning of the well referred to in suchthe notice will be	3887
delayed beyond the end of the period of time fixed therefor as in	3888
this section provided, and that the reservoir operator requests	3889
that a conference be held for the purpose of endeavoring to reach	3890
an agreement establishing a date subsequent to the end of such	3891
that period of time, on or before which suchthe reservoir	3892
operator may complete suchthe plugging or reconditioning without	3893
incurring any penalties for failure to do so as provided in this	3894
chapter. If such a reservoir operator sends to such a mine	3895
operator and to the division a notice and request for a conference	3896
as in this division provided, suchthe reservoir operator shall	3897
not incur any penalties for failure to complete the plugging or	3898
reconditioning of suchthe well within the period of time fixed as	3899
in this division prescribed, unless suchthe reservoir operator	3900
fails to complete the plugging or reconditioning of suchthe well	3901
within the period of time fixed by an approved agreement reached	3902
in suchthe conference, or fixed by an order by the chief upon a	3903
hearing held in the matter in the event of failure to reach an	3904
approved agreement in the conference.	3905

Whenever, in compliance with this division, a well is to be	3906
plugged by a reservoir operator, suchthe operator shall give to	3907
the division notice thereof, as many days in advance as will be	3908
necessary for the gas storage well inspector or a deputy mine	3909
inspector to be present at suchthe plugging. SuchThe	3910
notification shall be made on blanks furnished by the division and	3911
shall show the following information:	3912

(1) Name and address of the applicant;

3913

(2) The location of the well identified by section or lot	3914
number, city or village, and township and county;	3915

(3) The well name and number of each well to be plugged.

3916

(C) The operator shall give written notice at the same time	3917
to the owner of the land upon which the well is located, the	3918
owners or agents of the adjoining land, and adjoining well owners	3919
or agents of the operator's intention to abandon the well, and of	3920
the time when the operator will be prepared to commence plugging	3921
and filling the same. In addition to giving such notices, suchthe	3922
reservoir operator shall also at the same time send a copy of such	3923
the notice by registered mail to the coal mine operator, if any,	3924
who sent to the reservoir operator the notice as provided in	3925
division (B), (C), or (D) of section 1571.03 of the Revised Code,	3926
in order that suchthe coal mine operator or the coal mine	3927
operator's designated representative, may attend and observe the	3928
manner in which suchthe plugging of suchthe well is done.	3929

If the reservoir operator plugs suchthe well without an	3930
inspector from the division being present to supervise the	3931
plugging, the reservoir operator shall send to the division and to	3932
the coal mine operator a copy of the report of the plugging of	3933
suchthe well, including in suchthe report:	3934

(1) The date of abandonment;

3935

(2) The name of the owner or operator of suchthe well at the	3936
time of abandonment and the well owner's or operator's post office	3937
address;	3938

(3) The location of suchthe well as to township and county	3939
and the name of the owner of the surface upon which suchthe well	3940
is drilled, with the address thereof;	3941

(4) The date of the permit to drill;

3942

(5) The date when drilled;

3943

(6) Whether suchthe well has been mapped;

3944

(7) The depth of the well;

3945

(8) The depth of the top of the sand to which the well was	3946
drilled;	3947

(9) The depth of each seam of coal drilled through;

3948

(10) A detailed report as to how suchthe well was plugged,	3949
giving in particular the manner in which the coal and various	3950
sands were plugged, and the date of the plugging of suchthe well,	3951
including therein the names of those who witnessed the plugging of	3952
the well.	3953

SuchThe report shall be signed by the operator or the	3954
operator's agent who plugged suchthe well and verified by the	3955
oath of the party so signing. For the purposes of this section, a	3956
deputy mine inspector may take acknowledgements and administer	3957
oaths to the parties signing suchthe report.	3958

Whenever, in compliance with this division, a well is to be	3959
reconditioned by a reservoir operator, suchthe operator shall	3960
give to the division notice thereof as many days before suchthe	3961
reconditioning is begun as will be necessary for the gas storage	3962
well inspector, or a deputy mine inspector, to be present at such	3963
the reconditioning. No well shall be reconditioned if an inspector	3964
of the division is not present unless permission to do so has been	3965
granted by the chief. The reservoir operator, at the time of	3966
giving notice to the division as in this section required, also	3967
shall send a copy of suchthe notice by registered mail to the	3968
coal mine operator, if any, who sent to the reservoir operator the	3969
notice as provided in division (B), (C), or (D) of section 1571.03	3970
of the Revised Code, in order that suchthe coal mine operator or	3971
the coal mine operator's designated representative, may attend and	3972
observe the manner in which suchthe reconditioning of suchthe	3973
well is done.	3974

If the reservoir operator reconditions suchthe well when no	3975
inspector of the division is present to supervise the	3976
reconditioning, the reservoir operator shall make written report	3977
to the division describing the manner in which suchthe	3978
reconditioning was done, and shall send to the coal mine operator	3979
a copy of suchthe report by registered mail.	3980

(D) Wells that are required by this section to be plugged	3981
shall be plugged in the manner specified in sections 1509.13 to	3982
1509.191509.17 of the Revised Code, and the operator shall give	3983
the notifications and reports required by divisions (B) and (C) of	3984
this section. No such well shall be plugged or abandoned without	3985
the written approval of the division, and no such well shall be	3986
mudded, plugged, or abandoned without the gas storage well	3987
inspector or a deputy mine inspector present unless written	3988
permission has been granted by the chief or the gas storage well	3989
inspector. If such a well has been plugged prior to the time	3990
plugging thereof is required by this section, and, on the basis of	3991
the data, information, and other evidence available it is	3992
determined that suchthe plugging was done in the manner required	3993
by this section, or was done in accordance with statutes	3994
prescribing the manner of plugging wells in effect at the time	3995
suchthe plugging was done, and that there is no evidence of	3996
leakage of gas from suchthe well either at or below the surface,	3997
and that suchthe plugging is sufficiently effective to prevent	3998
the leakage of gas from suchthe well, the obligations imposed	3999
upon suchthe reservoir operator by this section as to plugging	4000
the well, shall be considered fully satisfied. The operator of a	4001
coal mine any part of the boundary of which is, or within nine	4002
months is expected or intended to be, within two thousand linear	4003
feet of suchthe well, may at any time raise a question as to	4004
whether the plugging of suchthe well is sufficiently effective to	4005
prevent the leakage of gas therefrom, and the issue so made shall	4006
be determined by a conference or hearing as provided in section	4007
1571.10 of the Revised Code.	4008

(E) Wells that are to be reconditioned as required by this	4009
section shall be, or shall be made to be:	4010

(1) Cased in accordance with the statutes of this state in	4011
effect at the time suchthe wells were drilled, with suchthe	4012
casing being, or made to be, sufficiently effective in that there	4013
is no evidence of any leakage of gas therefrom;	4014

(2) Equipped with a producing string and well head composed	4015
of new pipe, or pipe as good as new, and fittings designed to	4016
operate with safety and to contain the stored gas at maximum	4017
pressures contemplated.	4018

When a well that is to be reconditioned as required by this	4019
section, has been reconditioned for use in the operation of such	4020
the reservoir prior to the time prescribed in this section, and on	4021
the basis of the data, information, and other evidence available	4022
it is determined that at the time suchthe well was so	4023
reconditioned the requirements prescribed in this division were	4024
met, and that there is no evidence of underground leakage of gas	4025
from suchthe well, and that suchthe reconditioning is	4026
sufficiently effective to prevent underground leakage from the	4027
well, the obligations imposed upon suchthe reservoir operator by	4028
this section as to reconditioning suchthe well shall be	4029
considered fully satisfied. Any operator of a coal mine any part	4030
of the boundary of which is, or within nine months is expected or	4031
intended to be, within two thousand linear feet of suchthe well,	4032
may at any time raise a question as to whether the reconditioning	4033
of suchthe well is sufficiently effective to prevent underground	4034
leakage of gas therefrom, and the issue so made shall be	4035
determined by a conference or hearing as provided in section	4036
1571.10 of the Revised Code.	4037

If the gas storage well inspector at any time finds that a	4038
well that is drilled through the horizon of a coal mine and into	4039
or through the storage stratum or strata of a reservoir within the	4040
boundary of suchthe reservoir or within its protective area, is	4041
located within the boundary of suchthe coal mine or within two	4042
thousand linear feet of suchthe mine boundary, and was drilled	4043
prior to the time the statutes of this state required that wells	4044
be cased, and that suchthe well fails to meet the casing and	4045
equipping requirements prescribed in this division, the gas	4046
storage well inspector shall promptly notify the operator of such	4047
the reservoir thereof in writing, and suchthe reservoir operator	4048
upon receipt of suchthe notice, shall promptly recondition such	4049
the well in the manner prescribed in this division for	4050
reconditioning wells, unless, in a conference or hearing as	4051
provided in section 1571.10 of the Revised Code, a different	4052
course of action is agreed upon or ordered.	4053

(F)(1) When a well within the boundary of a gas storage	4054
reservoir or within suchthe reservoir's protective area	4055
penetrates the storage stratum or strata of suchthe reservoir,	4056
but does not penetrate the coal seam within the boundary of a coal	4057
mine, the gas storage well inspector may, upon application of the	4058
operator of suchthe storage reservoir, exempt suchthe well from	4059
the requirements of this section. Either party affected by such	4060
the action of the gas storage well inspector may request a	4061
conference and hearing with respect to suchthe exemption.	4062

(2) When a well located within the boundary of a storage	4063
reservoir or a reservoir's protective area is a producing well in	4064
a stratum above or below the storage stratum, the obligations	4065
imposed by this section shall not begin until suchthe well ceases	4066
to be a producing well.	4067

(G) When retreat mining reaches a point in a coal mine when	4068
the operator of suchthe mine expects that within ninety days	4069
retreat work will be at the location of a pillar surrounding an	4070
active storage reservoir well, the operator of suchthe mine shall	4071
promptly send by registered mail notice to that effect to the	4072
operator of suchthe reservoir. Thereupon the operators may by	4073
agreement determine whether it is necessary or advisable to	4074
temporarily inactivate the well. If inactivated, the well shall	4075
not be reactivated until a reasonable period of time has elapsed,	4076
such period of time to be determined by agreement by the	4077
operators. In the event that the parties cannot agree upon either	4078
of the foregoing matters, suchthe question shall be submitted to	4079
the gas storage well inspector for a conference in accordance with	4080
section 1571.10 of the Revised Code.	4081

(H)(1) The provisions of this section that require the	4082
plugging or reconditioning of wells shall not apply to such wells	4083
as are used to inject gas into, store gas in, or remove gas from,	4084
a gas storage reservoir when the sole purpose of suchthe	4085
injection, storage, or removal, is testing. The operator of a gas	4086
storage reservoir who injects gas into, stores gas in, or removes	4087
gas from, a reservoir for the sole purpose of testing, shall be	4088
subject to all other provisions of this chapter that are	4089
applicable to operators of reservoirs.	4090

(2) If the injection of gas into, or storage of gas in, a gas	4091
storage reservoir any part of which, or of the protective area of	4092
which, is within the boundary of a coal mine, is begun after	4093
September 9, 1957, and if suchthe injection or storage of gas is	4094
for the sole purpose of testing, the operator of suchthe	4095
reservoir shall send by registered mail to the operator of such	4096
the coal mine and to the division at least sixty days' notice of	4097
the date upon which suchthe testing will be begun.	4098

If at any time within the period of time during which testing	4099
of a reservoir is in progress, any part of suchthe reservoir or	4100
of its protective area comes within any part of the boundary of a	4101
coal mine, the operator of suchthe reservoir shall promptly send	4102
notice to that effect by registered mail to the operator of such	4103
the mine and to the division.	4104

(3) Any coal mine operator who receives a notice as provided	4105
for in division (H)(2) of this section, may within thirty days of	4106
the receipt thereof, file with the division objections to suchthe	4107
testing. The gas storage well inspector also may, within the time	4108
within which a coal mine operator may file suchan objection,	4109
place in the files of the division objections to suchthe testing.	4110
The reservoir operator shall comply throughout the period of the	4111
testing operations with all conditions and requirements agreed	4112
upon and approved in the conference on such objections conducted	4113
as provided in section 1571.10 of the Revised Code, or in an order	4114
made by the chief following a hearing in the matter as provided in	4115
section 1571.10 of the Revised Code. If in complying with suchthe	4116
agreement or order either the reservoir operator or the coal mine	4117
operator encounters or discovers conditions that were not known to	4118
exist at the time of suchthe conference or hearing and that	4119
materially affect suchthe agreement or order, or the ability of	4120
the reservoir operator to comply therewith, either operator may	4121
apply for a rehearing or modification of the order.	4122

(I) In addition to complying with all other provisions of	4123
this chapter and any lawful orders issued thereunder, the operator	4124
of each gas storage reservoir shall keep all wells drilled into or	4125
through the storage stratum or strata within the boundary of the	4126
operator's reservoir or within the reservoir's protective area in	4127
such condition, and operate the same in such manner, as to prevent	4128
the escape of gas therefrom into any coal mine, and shall operate	4129
and maintain suchthe storage reservoir and its facilities in such	4130
manner and at such pressures as will prevent gas from escaping	4131
from suchthe reservoir or its facilities into any coal mine.	4132

Sec. 5749.06.  Each severer liable for the tax imposed by	4133
section 5749.02 of the Revised Code shall make and file returns	4134
with the tax commissioner in the prescribed form and as of the	4135
prescribed times, computing and reflecting therein the tax as	4136
required by this chapter and the oil and gas regulatory cost	4137
recovery assessment imposed by section 1509.50 of the Revised	4138
Code.	4139

The returns shall be filed for every quarterly period, which	4140
periods shall end on the thirty-first of March, the thirtieth day	4141
of June, the thirtieth day of September, and the thirty-first day	4142
of December of each year, as required by this section, unless a	4143
different return period is prescribed for a taxpayer by the tax	4144
commissioner.	4145

A separate return shall be filed for each calendar quarterly	4146
period, or other period, or any part thereof, during which the	4147
severer holds a license as provided by section 5749.04 of the	4148
Revised Code, or is required to hold suchthe license, and such	4149
the return shall be filed within forty-five days after the last	4150
day of each such calendar month, or other period, or any part	4151
thereof, for which suchthe return is required and shall include	4152
remittance payable to the treasurer of state of the amount of tax	4153
due. All such returns shall contain such information as the	4154
commissioner may require to fairly administer the tax.	4155

All returns shall be signed by the severer, shall contain the	4156
full and complete information requested, and shall be made under	4157
penalty of perjury.	4158

If the commissioner believes that quarterly payments of tax	4159
would result in a delay whichthat might jeopardize the collection	4160
of such tax payments, the commissioner may order that such	4161
payments be made weekly, or more frequently if necessary, such	4162
payments to be made not later than seven days following the close	4163
of the period for which the jeopardy payment is required. Such an	4164
order shall be delivered to the taxpayer personally or by	4165
certified mail and shall remain in effect until the commissioner	4166
notifies the taxpayer to the contrary.	4167

Upon good cause the commissioner may extend the period for	4168
filing any notice or return required to be filed under this	4169
section, and may remit all or a part of penalties that may become	4170
due under this chapter.	4171

Any tax not paid by the day the tax is due shall bear	4172
interest computed at the rate per annum prescribed by section	4173
5703.47 of the Revised Code on that amount of tax due from the day	4174
that suchthe amount was originally required to be paid to the day	4175
of actual payment or to the day an assessment was issued under	4176
section 5749.07 or 5749.10 of the Revised Code, whichever occurs	4177
first.	4178

The severer shall make all payments payable to the treasurer	4179
of state. AllExcept for the amounts received from the oil and gas	4180
regulatory cost recovery assessment imposed by section 1509.50 of	4181
the Revised Code, all amounts that the tax commissioner receives	4182
under this section shall be deemed to be revenue from taxes	4183
imposed under this chapter. The tax commissioner shall immediately	4184
forward to the treasurer of state all amounts received under this	4185
section.	4186

Section 2. That existing sections 1509.01, 1509.02, 1509.03,	4187
1509.04, 1509.05, 1509.06, 1509.061, 1509.07, 1509.071, 1509.072,	4188
1509.08, 1509.09, 1509.10, 1509.11, 1509.12, 1509.13, 1509.14,	4189
1509.15, 1509.17, 1509.18, 1509.20, 1509.21, 1509.22, 1509.221,	4190
1509.222, 1509.223, 1509.224, 1509.225, 1509.23, 1509.24, 1509.26,	4191
1509.30, 1509.31, 1509.32, 1509.33, 1509.35, 1509.36, 1509.38,	4192
1509.99, 1565.07, 1565.13, 1571.05, and 5749.06 and sections	4193
1509.226, 1509.25, 1509.27, 1509.29, 1509.40, and 1509.41 of the	4194
Revised Code are hereby repealed.	4195

Section 3. (A) The Technical advisory Council on Oil and Gas	4196
created in section 1509.38 of the Revised Code as that section	4197
existed prior to its amendment by this act is abolished.	4198

(B) Not later than ninety days after the effective date of	4199
this section, the Governor, with the advice and consent of the	4200
Senate, shall appoint the initial members of the Technical	4201
Advisory Council on Oil and Gas that is created in section 1509.38	4202
of the Revised Code as amended by this act. In doing so, the	4203
Governor shall provide for staggered terms of office for members	4204
of the Council.	4205

Section 4. (A) The members who are serving on the Oil and Gas	4206
Commission created in section 1509.35 of the Revised Code on the	4207
effective date of the amendment by this act to that section shall	4208
hold office until their terms expire unless they are removed under	4209
division (F) of that section. Any person appointed to the	4210
Commission after the effective date of the amendment to that	4211
section shall be appointed for a term of three years as specified	4212
in that amendment.	4213

(B) Not later than ninety days after the effective date of	4214
this section, the Governor shall appoint four additional members	4215
to the Oil and Gas Commission in accordance with the amendment by	4216
this act to section 1509.35 of the Revised Code. Of the additional	4217
members appointed by the Governor, one member's term shall expire	4218
in 2011, one member's term shall expire in 2012, and two members'	4219
terms shall expire in 2013.	4220