Bill Text: OH HB596 | 2011-2012 | 129th General Assembly | Introduced

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

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Introduced - Dead) 2012-10-04 - To Agriculture & Natural Resources [HB596 Detail]

Download: Ohio-2011-HB596-Introduced.html

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As Introduced

129th General Assembly Regular Session 2011-2012

H. B. No. 596

Representative Hagan, R. 

Cosponsor: Representative Foley 

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A BILL

To amend sections 1509.06, 1509.10, and 1509.31 and

1

to enact section 1509.091 of the Revised Code to

2

revise the requirements concerning an oil and gas

3

permit application, an oil and gas well completion

4

record, designation of trade secret protection for

5

chemicals used to drill or stimulate an oil and

6

gas well, and disclosure of chemical information

7

to a medical professional, to require an owner to

8

report all chemicals brought to a well site, and

9

to make other changes in the Oil and Gas Law.

10

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

Section 1.  That sections 1509.06, 1509.10, and 1509.31 be	11
amended and section 1509.091 of the Revised Code be enacted to	12
read as follows:	13

Sec. 1509.06. (A) An application for a permit to drill a new	14
well, drill an existing well deeper, reopen a well, convert a well	15
to any use other than its original purpose, or plug back a well to	16
a different source of supply, including associated production	17
operations, shall be filed with the chief of the division of oil	18
and gas resources management upon such form as the chief	19
prescribes and shall contain each of the following that is	20
applicable:	21

(1) The name and address of the owner and, if a corporation,	22
the name and address of the statutory agent;	23

(2) The signature of the owner or the owner's authorized	24
agent. When an authorized agent signs an application, it shall be	25
accompanied by a certified copy of the appointment as such agent.	26

(3) The names and addresses of all persons holding the	27
royalty interest in the tract upon which the well is located or is	28
to be drilled or within a proposed drilling unit;	29

(4) The location of the tract or drilling unit on which the	30
well is located or is to be drilled identified by section or lot	31
number, city, village, township, and county;	32

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

33

(6)(a) The geological formation to be tested or used and the	34
proposed total depth of the well;	35

(b) If the well is for the injection of a liquid, identity of	36
the geological formation to be used as the injection zone and the	37
composition of the liquid to be injected.	38

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

39

(8)(a) An identification, to the best of the owner's	40
knowledge, of each proposed source of ground water and surface	41
water that will be used in the production operations of the well.	42
The identification of each proposed source of water shall indicate	43
if the water will be withdrawn from the Lake Erie watershed or the	44
Ohio river watershed. In addition, the owner shall provide, to the	45
best of the owner's knowledge, the proposed estimated rate and	46
volume of the water withdrawal for the production operations. If	47
recycled water will be used in the production operations, the	48
owner shall provide the estimated volume of recycled water to be	49
used. The owner shall submit to the chief an update of any of the	50
information that is required by division (A)(8)(a) of this section	51
if any of that information changes before the chief issues a	52
permit for the application.	53

(b) Except as provided in division (A)(8)(c) of this section,	54
for an application for a permit to drill a new well within an	55
urbanized area, the results of sampling of water wells within	56
three hundred feet of the proposed well prior to commencement of	57
drilling. In addition, the owner shall include a list that	58
identifies the location of each water well where the owner of the	59
property on which the water well is located denied the owner	60
access to sample the water well. The sampling shall be conducted	61
in accordance with the guidelines established in "Best Management	62
Practices For Pre-drilling Water Sampling" in effect at the time	63
that the application is submitted. The division shall furnish	64
those guidelines upon request and shall make them available on the	65
division's web site. If the chief determines that conditions at	66
the proposed well site warrant a revision, the chief may revise	67
the distance established in this division for purposes of	68
pre-drilling water sampling.	69

(c) For an application for a permit to drill a new horizontal	70
well, the results of sampling of water wells within one thousand	71
five hundred feet of the proposed horizontal wellhead prior to	72
commencement of drilling. In addition, the owner shall include a	73
list that identifies the location of each water well where the	74
owner of the property on which the water well is located denied	75
the owner access to sample the water well. The sampling shall be	76
conducted in accordance with the guidelines established in "Best	77
Management Practices For Pre-drilling Water Sampling" in effect at	78
the time that the application is submitted. The division shall	79
furnish those guidelines upon request and shall make them	80
available on the division's web site. If the chief determines that	81
conditions at the proposed well site warrant a revision, the chief	82
may revise the distance established in this division for purposes	83
of pre-drilling water sampling.	84

(9) For an application for a permit to drill a new well	85
within an urbanized area, a sworn statement that the applicant has	86
provided notice by regular mail of the application to the owner of	87
each parcel of real property that is located within five hundred	88
feet of the surface location of the well and to the executive	89
authority of the municipal corporation or the board of township	90
trustees of the township, as applicable, in which the well is to	91
be located. In addition, the notice shall contain a statement that	92
informs an owner of real property who is required to receive the	93
notice under division (A)(9) of this section that within five days	94
of receipt of the notice, the owner is required to provide notice	95
under section 1509.60 of the Revised Code to each residence in an	96
occupied dwelling that is located on the owner's parcel of real	97
property. The notice shall contain a statement that an application	98
has been filed with the division of oil and gas resources	99
management, identify the name of the applicant and the proposed	100
well location, include the name and address of the division, and	101
contain a statement that comments regarding the application may be	102
sent to the division. The notice may be provided by hand delivery	103
or regular mail. The identity of the owners of parcels of real	104
property shall be determined using the tax records of the	105
municipal corporation or county in which a parcel of real property	106
is located as of the date of the notice.	107

(10) A plan for restoration of the land surface disturbed by	108
drilling operations. The plan shall provide for compliance with	109
the restoration requirements of division (A) of section 1509.072	110
of the Revised Code and any rules adopted by the chief pertaining	111
to that restoration.	112

(11)(a) A description by name or number of the county,	113
township, and municipal corporation roads, streets, and highways	114
that the applicant anticipates will be used for access to and	115
egress from the well site;	116

(b) For an application for a permit for a horizontal well, a	117
copy of an agreement concerning maintenance and safe use of the	118
roads, streets, and highways described in division (A)(11)(a) of	119
this section entered into on reasonable terms with the public	120
official that has the legal authority to enter into such	121
maintenance and use agreements for each county, township, and	122
municipal corporation, as applicable, in which any such road,	123
street, or highway is located or an affidavit on a form prescribed	124
by the chief attesting that the owner attempted in good faith to	125
enter into an agreement under division (A)(11)(b) of this section	126
with the applicable public official of each such county, township,	127
or municipal corporation, but that no agreement was executed.	128

(12) For an application for a permit to drill a new	129
horizontal well, the type, volume, and geochemistry of each fluid	130
that is proposed to be used to stimulate the reservoir of the	131
proposed well, the proposed method that will be used for the	132
containment of fluids recovered from the fracturing of the	133
proposed well, and the proposed methods that will be used for the	134
containment of fluids when pulled from the wellbore from swabbing	135
the proposed well. In addition, the application shall include an	136
identification of any chemical that is proposed to be added to	137
each fluid that is proposed to be used to stimulate the reservoir	138
of the proposed well and shall include the chemical's name, the	139
chemical abstracts service number, the chemical family name, the	140
trade name, the vendor, a brief description of the chemical's	141
intended use or function, and the proposed quantity to be used	142
that is reported as a percentage, by weight or volume, of the	143
total fluid. However, the application shall not include	144
information that is designated as a trade secret pursuant to	145
division (I)(1) of section 1509.10 of the Revised Code.	146

(13) Such other relevant information as the chief prescribes	147
by rule.	148

Each application shall be accompanied by a map, on a scale	149
not smaller than four hundred feet to the inch, prepared by an	150
Ohio registered surveyor, showing the location of the well and	151
containing such other data as may be prescribed by the chief. If	152
the well is or is to be located within the excavations and	153
workings of a mine, the map also shall include the location of the	154
mine, the name of the mine, and the name of the person operating	155
the mine.	156

(B) The chief shall cause a copy of the weekly circular	157
prepared by the division to be provided to the county engineer of	158
each county that contains active or proposed drilling activity.	159
The weekly circular shall contain, in the manner prescribed by the	160
chief, the names of all applicants for permits, the location of	161
each well or proposed well, the information required by division	162
(A)(11) of this section, and any additional information the chief	163
prescribes. In addition, the chief promptly shall transfer an	164
electronic copy or facsimile, or if those methods are not	165
available to a municipal corporation or township, a copy via	166
regular mail, of a drilling permit application to the clerk of the	167
legislative authority of the municipal corporation or to the clerk	168
of the township in which the well or proposed well is or is to be	169
located if the legislative authority of the municipal corporation	170
or the board of township trustees has asked to receive copies of	171
such applications and the appropriate clerk has provided the chief	172
an accurate, current electronic mailing address or facsimile	173
number, as applicable.	174

(C)(1) Except as provided in division (C)(2) of this section,	175
the chief shall not issue a permit for at least ten days after the	176
date of filing of the application for the permit unless, upon	177
reasonable cause shown, the chief waives that period or a request	178
for expedited review is filed under this section. However, the	179
chief shall issue a permit within twenty-one days of the filing of	180
the application unless the chief denies the application by order.	181

(2) If the location of a well or proposed well will be or is	182
within an urbanized area, the chief shall not issue a permit for	183
at least eighteen days after the date of filing of the application	184
for the permit unless, upon reasonable cause shown, the chief	185
waives that period or the chief at the chief's discretion grants a	186
request for an expedited review. However, the chief shall issue a	187
permit for a well or proposed well within an urbanized area within	188
thirty days of the filing of the application unless the chief	189
denies the application by order.	190

(D) An applicant may file a request with the chief for	191
expedited review of a permit application if the well is not or is	192
not to be located in a gas storage reservoir or reservoir	193
protective area, as "reservoir protective area" is defined in	194
section 1571.01 of the Revised Code. If the well is or is to be	195
located in a coal bearing township, the application shall be	196
accompanied by the affidavit of the landowner prescribed in	197
section 1509.08 of the Revised Code.	198

In addition to a complete application for a permit that meets	199
the requirements of this section and the permit fee prescribed by	200
this section, a request for expedited review shall be accompanied	201
by a separate nonrefundable filing fee of two hundred fifty	202
dollars. Upon the filing of a request for expedited review, the	203
chief shall cause the county engineer of the county in which the	204
well is or is to be located to be notified of the filing of the	205
permit application and the request for expedited review by	206
telephone or other means that in the judgment of the chief will	207
provide timely notice of the application and request. The chief	208
shall issue a permit within seven days of the filing of the	209
request unless the chief denies the application by order.	210
Notwithstanding the provisions of this section governing expedited	211
review of permit applications, the chief may refuse to accept	212
requests for expedited review if, in the chief's judgment, the	213
acceptance of the requests would prevent the issuance, within	214
twenty-one days of their filing, of permits for which applications	215
are pending.	216

(E) A well shall be drilled and operated in accordance with	217
the plans, sworn statements, and other information submitted in	218
the approved application.	219

(F) The chief shall issue an order denying a permit if the	220
chief finds that there is a substantial risk that the operation	221
will result in violations of this chapter or rules adopted under	222
it that will present an imminent danger to public health or safety	223
or damage to the environment, provided that where the chief finds	224
that terms or conditions to the permit can reasonably be expected	225
to prevent such violations, the chief shall issue the permit	226
subject to those terms or conditions, including, if applicable,	227
terms and conditions regarding subjects identified in rules	228
adopted under section 1509.03 of the Revised Code. The issuance of	229
a permit shall not be considered an order of the chief.	230

The chief shall post notice of each permit that has been	231
approved under this section on the division's web site not later	232
than two business days after the application for a permit has been	233
approved.	234

(G) Each application for a permit required by section 1509.05	235
of the Revised Code, except an application to plug back an	236
existing well that is required by that section and an application	237
for a well drilled or reopened for purposes of section 1509.22 of	238
the Revised Code, also shall be accompanied by a nonrefundable fee	239
as follows:	240

(1) Five hundred dollars for a permit to conduct activities	241
in a township with a population of fewer than ten thousand;	242

(2) Seven hundred fifty dollars for a permit to conduct	243
activities in a township with a population of ten thousand or	244
more, but fewer than fifteen thousand;	245

(3) One thousand dollars for a permit to conduct activities	246
in either of the following:	247

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

248

(b) A municipal corporation regardless of population.

249

(4) If the application is for a permit that requires	250
mandatory pooling, an additional five thousand dollars.	251

For purposes of calculating fee amounts, populations shall be	252
determined using the most recent federal decennial census.	253

Each application for the revision or reissuance of a permit	254
shall be accompanied by a nonrefundable fee of two hundred fifty	255
dollars.	256

(H)(1) Prior to the commencement of well pad construction and	257
prior to the issuance of a permit to drill a proposed horizontal	258
well or a proposed well that is to be located in an urbanized	259
area, the division shall conduct a site review to identify and	260
evaluate any site-specific terms and conditions that may be	261
attached to the permit. At the site review, a representative of	262
the division shall consider fencing, screening, and landscaping	263
requirements, if any, for similar structures in the community in	264
which the well is proposed to be located. The terms and conditions	265
that are attached to the permit shall include the establishment of	266
fencing, screening, and landscaping requirements for the surface	267
facilities of the proposed well, including a tank battery of the	268
well.	269

(2) Prior to the issuance of a permit to drill a proposed	270
well, the division shall conduct a review to identify and evaluate	271
any site-specific terms and conditions that may be attached to the	272
permit if the proposed well will be located in a one-hundred-year	273
floodplain or within the five-year time of travel associated with	274
a public drinking water supply.	275

(I) A permit shall be issued by the chief in accordance with	276
this chapter. A permit issued under this section for a well that	277
is or is to be located in an urbanized area shall be valid for	278
twelve months, and all other permits issued under this section	279
shall be valid for twenty-four months.	280

(J) An applicant or a permittee, as applicable, shall submit	281
to the chief an update of the information that is required under	282
division (A)(8)(a) of this section if any of that information	283
changes prior to commencement of production operations.	284

(K) In addition to a complete application to drill a new	285
horizontal well, an applicant also shall submit to the chief the	286
specific chemical identity or chemical name or other specific	287
information pertaining to each chemical, as applicable, for which	288
the chief has issued an order under division (I)(1) of section	289
1509.10 of the Revised Code approving a request for trade secret	290
designation and that is proposed to be added to each fluid that is	291
proposed to be used to stimulate the reservoir of the proposed	292
well. The applicant shall include the chemical's name, the	293
chemical abstracts service number, the chemical family name, the	294
trade name, the vendor, a brief description of the chemical's	295
intended use or function, and the proposed quantity to be used	296
that is reported as a percentage, by weight or volume, of the	297
total fluid. The chief shall maintain a database consisting of the	298
information received pursuant to this division and shall disclose	299
the information in the database only for the purposes specified in	300
division (H) of section 1509.10 of the Revised Code. The chief may	301
adopt rules in accordance with Chapter 119. of the Revised Code	302
that are necessary for the administration of this division.	303

(L) A permittee or a permittee's authorized representative	304
shall notify an inspector from the division at least twenty-four	305
hours, or another time period agreed to by the chief's authorized	306
representative, prior to the commencement of well pad construction	307
and of drilling, reopening, converting, well stimulation, or	308
plugback operations.	309

Sec. 1509.091. If a chemical or a fluid containing a chemical	310
is brought to a well site, the owner of the well immediately shall	311
submit to the chief of the division of oil and gas resources	312
management a list that identifies each chemical or each chemical	313
in the fluid, as applicable, and that includes information that is	314
designated as a trade secret pursuant to division (I)(1) of	315
section 1509.10 of the Revised Code, and that identifies the well.	316
The chief shall maintain a database consisting of the information	317
received pursuant to this section and shall disclose the	318
information in the database only for the purposes specified in	319
division (H) of section 1509.10 of the Revised Code. The chief	320
shall adopt rules in accordance with Chapter 119. of the Revised	321
Code that are necessary for the administration of this section and	322
to preserve the confidentiality of trade secrets.	323

Sec. 1509.10.  (A) Any person drilling within the state	324
shall, within sixty days after the completion of drilling	325
operations to the proposed total depth or after a determination	326
that a well is a dry or lost hole, file with the division of oil	327
and gas resources management all wireline electric logs and an	328
accurate well completion record on a form that is prescribed by	329
the chief of the division of oil and gas resources management that	330
designates:	331

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

332

(2) The character, depth, and thickness of geological units	333
encountered, including coal seams, mineral beds, associated fluids	334
such as fresh water, brine, and crude oil, natural gas, and sour	335
gas, if such seams, beds, fluids, or gases are known;	336

(3) The dates on which drilling operations were commenced and	337
completed;	338

(4) The types of drilling tools used and the name of the	339
person that drilled the well;	340

(5) The length in feet of the various sizes of casing and	341
tubing used in drilling the well, the amount removed after	342
completion, the type and setting depth of each packer, all other	343
data relating to cementing in the annular space behind such casing	344
or tubing, and data indicating completion as a dry, gas, oil,	345
combination oil and gas, brine injection, or artificial brine well	346
or a stratigraphic test;	347

(6) The number of perforations in the casing and the	348
intervals of the perforations;	349

(7) The elevation above mean sea level of the point from	350
which the depth measurements were made, stating also the height of	351
the point above ground level at the well, the total depth of the	352
well, and the deepest geological unit that was penetrated in the	353
drilling of the well;	354

(8) If applicable, the type, volume, and concentration of	355
acid, and the date on which acid was used in acidizing the well;	356

(9)(a) If applicable, the trade name and the total amount of	357
all products, fluids, and substances, and the supplier of each	358
product, fluid, or substance, not including cement and its	359
constituents and lost circulation materials, intentionally added	360
to facilitate the drilling of any portion of the well until the	361
surface casing is set and properly sealed. The owner shall	362
identify each additive used and provide a brief description of the	363
purpose for which the additive is used. In addition, the owner	364
shall include a list of all chemicals, not including any	365
information that is designated as a trade secret pursuant to	366
division (I)(1) of this section, intentionally added to all	367
products, fluids, or substances and include each chemical's	368
corresponding chemical abstracts service number and the maximum	369
concentration of each chemical. The owner shall obtain the	370
chemical information, not including any information that is	371
designated as a trade secret pursuant to division (I)(1) of this	372
section, from the company that drilled the well, provided service	373
at the well, or supplied the chemicals. If the company that	374
drilled the well, provided service at the well, or supplied the	375
chemicals provides incomplete or inaccurate chemical information,	376
the owner shall make reasonable efforts to obtain the required	377
information from the company or supplier.	378

(b) For purposes of division (A)(9)(a) of this section, if	379
recycled fluid was used, the total volume of recycled fluid and	380
the well that is the source of the recycled fluid or the	381
centralized facility that is the source of the recycled fluid.	382

(10)(a) If applicable, the type and volume of fluid, not	383
including cement and its constituents or information that is	384
designated as a trade secret pursuant to division (I)(1) of this	385
section, used to stimulate the reservoir of the well, the	386
reservoir breakdown pressure, the method used for the containment	387
of fluids recovered from the fracturing of the well, the methods	388
used for the containment of fluids when pulled from the wellbore	389
from swabbing the well, the average pumping rate of the well, and	390
the name of the person that performed the well stimulation. In	391
addition, the owner shall include a copy of the log from the	392
stimulation of the well, a copy of the invoice for each of the	393
procedures and methods described in division (A)(10) of this	394
section that were used on a well, and a copy of the pumping	395
pressure and rate graphs. However, the owner may redact from the	396
copy of each invoice that is required to be included under	397
division (A)(10) of this section the costs of and charges for the	398
procedures and methods described in division (A)(10) of this	399
section that were used on a well.	400

(b) If applicable, the trade name and the total volume of all	401
products, fluids, and substances, and the supplier of each	402
product, fluid, or substance used to stimulate the well. The owner	403
shall identify each additive used, provide a brief description of	404
the purpose for which the additive is used, and include the	405
maximum concentration of the additive used. In addition, the owner	406
shall include a list of all chemicals, not including any	407
information that is designated as a trade secret pursuant to	408
division (I)(1) of this section, intentionally added to all	409
products, fluids, or substances, include the name of each vendor	410
of each chemical, and include each chemical's corresponding	411
chemical abstracts service number, the chemical family name, the	412
trade name, a brief description of each chemical's intended use or	413
function, and the maximum concentration of each chemical reported	414
as a percentage. The owner shall obtain the chemical information,	415
not including any information that is designated as a trade secret	416
pursuant to division (I)(1) of this section, from the company that	417
stimulated the well or supplied the chemicals. If the company that	418
stimulated the well or supplied the chemicals provides incomplete	419
or inaccurate chemical information, the owner shall make	420
reasonable efforts to obtain the required information from the	421
company or supplier.	422

(c) For purposes of division (A)(10)(b) of this section, if	423
recycled fluid was used, the total volume of recycled fluid and	424
the well that is the source of the recycled fluid or the	425
centralized facility that is the source of the recycled fluid.	426

(11) The name of the company that performed the logging of	427
the well and the types of wireline electric logs performed on the	428
well.	429

The well completion record shall be submitted in duplicate.	430
The first copy shall be retained as a permanent record in the	431
files of the division, and the second copy shall be transmitted by	432
the chief to the division of geological survey.	433

(B)(1) Not later than sixty days after the completion of the	434
drilling operations to the proposed total depth, the owner shall	435
file all wireline electric logs with the division of oil and gas	436
resources management and the chief shall transmit such logs	437
electronically, if available, to the division of geological	438
survey. Such logs may be retained by the owner for a period of not	439
more than six months, or such additional time as may be granted by	440
the chief in writing, after the completion of the well	441
substantially to the depth shown in the application required by	442
section 1509.06 of the Revised Code.	443

(2) If a well is not completed within sixty days after the	444
completion of drilling operations, the owner shall file with the	445
division of oil and gas resources management a supplemental well	446
completion record that includes all of the information required	447
under this section within sixty days after the completion of the	448
well.	449

(3) After a well is initially completed and stimulated and	450
until the well is plugged, the owner shall report, on a form	451
prescribed by the chief, all materials placed into the formation	452
to refracture, restimulate, or newly complete the well. The owner	453
shall submit the information within sixty days after completing	454
the refracturing, restimulation, or new completion. In addition,	455
the owner shall report the information required in divisions	456
(A)(10)(a) to (c) of this section, as applicable, in a manner	457
consistent with the requirements established in this section.	458

(C) Upon request in writing by the chief of the division of	459
geological survey prior to the beginning of drilling of the well,	460
the person drilling the well shall make available a complete set	461
of cuttings accurately identified as to depth.	462

(D) The form of the well completion record required by this	463
section shall be one that has been prescribed by the chief of the	464
division of oil and gas resources management and the chief of the	465
division of geological survey. The filing of a log as required by	466
this section fulfills the requirement of filing a log with the	467
chief of the division of geological survey in section 1505.04 of	468
the Revised Code.	469

(E) If a material listed or designated under division (A)(9)	470
or (10) or (B)(3) of this section is a material for which the	471
division of oil and gas resources management does not have a	472
material safety data sheet, the owner shall provide a copy of the	473
material safety data sheet for the material to the chief.	474

(F) An owner shall submit to the chief the information that	475
is required in divisions (A)(10)(b) and (c) and (B)(3) of this	476
section consistent with the requirements established in this	477
section using one of the following methods:	478

(1) On a form prescribed by the chief;

479

(2) Through the chemical disclosure registry that is	480
maintained by the ground water protection council and the	481
interstate oil and gas compact commission;	482

(3) Any other means approved by the chief.

483

(G) The chief shall post on the division's web site each	484
material safety data sheet obtained under division (E) of this	485
section. In addition, the chief shall make available through the	486
division's web site the chemical information that is required by	487
divisions (A)(9) and (10) and (B)(3) of this section. If the chief	488
issues an order pursuant to division (I)(1) of this section	489
denying a request for trade secret designation and if the owner or	490
person requesting the trade secret designation does not appeal the	491
chief's order or if a court determines that the chemical identity,	492
the chemical name, or other specific information pertaining to the	493
chemical is not entitled to trade secret protection, the chief	494
shall make available through the division's web site the chemical	495
information.	496

(H)(1) If a medical professional, in order to assist in the	497
diagnosis or treatment of an individual who wasmay have been	498
affected by an incident associated with the production operations	499
of a well construction, drilling, stimulation, completion,	500
production, or other production operations at a well or by	501
chemical transportation accidents related to the production	502
operations of a well, requests the exact chemical composition of	503
each product, fluid, or substance and of each chemical component	504
in a product, fluid, or substanceidentity or chemical name or	505
other specific information pertaining to a chemical that is	506
designated as a trade secret pursuant to division (I) of this	507
section, the person claiming the trade secret protection pursuant	508
to that divisionchief shall provide to the medical professional,	509
as expeditiously as possible, the exact chemical composition of	510
the product, fluid, or substance and of the chemical component in	511
a product, fluid, or substanceidentity or chemical name or other	512
specified information pertaining to the chemical that is	513
requested.	514

(2) A medical professional who receives information pursuant	515
to division (H)(1) of this section shall keep the information	516
confidential and shall not disclose the information for any	517
purpose that is not related to the diagnosis or treatment of an	518
individual who was affected by an incident associated with the	519
production operations of a well. Nothing in division (H)(2) of	520
this section precludes a medical professional from making any	521
report required by law or professional ethical standards.	522

(I)(1) The owner of a well who is required to submit a well	523
completion record under division (A) of this section or a report	524
under division (B)(3) of this section or a person that provides	525
information to the owner as described in and for purposes of	526
division (A)(9) or (10) or (B)(3) of this section may designate	527
without disclosingrequest on a form prescribed by the chief and	528
withhold from disclosure to the chief the identity, amount,	529
concentration, or purpose of a product, fluid, or substance or of	530
a chemical component in a product, fluid, or substance as a trade	531
secret. Thethat the specific chemical identity, including the	532
chemical name and other specific information pertaining to the	533
chemical, be designated as a trade secret and withheld from	534
disclosure. The owner or person shall demonstrate on the form that	535
the information sought to be designated as a trade secret is a	536
trade secret as defined in section 1333.61 of the Revised Code.	537
After receipt and review of a form requesting trade secret	538
designation, the chief may request the owner or person to provide	539
additional information concerning the request. Not later than	540
sixty days after receipt of a form requesting trade secret	541
designation, the chief shall issue an order either approving or	542
denying the request for trade secret designation. The chief shall	543
send a copy of the order to the owner or person. The owner or	544
person may appeal the chief's order denying the request for trade	545
secret designation pursuant to section 1509.36 of the Revised	546
Code. The chief may adopt rules in accordance with Chapter 119. of	547
the Revised Code that are necessary and appropriate to administer	548
this division or to preserve the confidentiality of trade secrets.	549

(2) The owner or person may pursue enforcement of any rights	550
or remedies established in sections 1333.61 to 1333.69 of the	551
Revised Code for misappropriation, as defined in section 1333.61	552
of the Revised Code, with respect to the chemical identity,	553
amount, concentration, or purpose of a product, fluid, or	554
substance or a chemical component in a product, fluid, or	555
substanceor chemical name or other specific information	556
pertaining to the chemical designated as a trade secret pursuant	557
to division (I)(1) of this section. The division shall not	558
disclose information regarding the chemical identity, amount,	559
concentration, or purpose of any product, fluid, or substance or	560
of any chemical component in a product, fluid, or substanceor	561
chemical name or other specific information pertaining to the	562
chemical designated as a trade secret pursuant to division (I)(1)	563
of this section.	564

(2)(3) A property owner, an adjacent property owner, or any	565
person or agency of this state having an interest that is or may	566
be adversely affected by a product, fluid, or substance or by a	567
chemical component in a product, fluid, or substance may commence	568
a civil action in the court of common pleas of Franklin county	569
against an owner or person described in division (I)(1) of this	570
section challenging the owner's or person's claim to entitlement	571
to trade secret protection for the specific chemical identity,	572
amount, concentration, or purpose of a product, fluid, or	573
substance or of a chemical component in a product, fluid, or	574
substanceor chemical name or other specific information	575
pertaining to the chemical pursuant to division (I)(1) of this	576
section. A person who commences a civil action pursuant to	577
division (I)(2)(3) of this section shall provide notice to the	578
chief in a manner prescribed by the chief. In the civil action,	579
the court shall conduct an in camera review of information	580
submitted by an owner or person described in division (I)(1) of	581
this section to determine if the chemical identity, amount,	582
concentration, or purpose of a product, fluid, or substance or of	583
a chemical component in a product, fluid, or substanceor chemical	584
name or other specific information pertaining to the chemical	585
pursuant to division (I)(1) of this section is entitled to trade	586
secret protection.	587

(J)(1) Except for any information that is designated as a	588
trade secret pursuant to division (I)(1) of this section and	589
except as provided in division (J)(2) of this section, the owner	590
of a well shall maintain records of all chemicals placed in a well	591
for a period of not less than two years after the date on which	592
each such chemical was placed in the well. The chief may inspect	593
the records at any time concerning any such chemical.	594

(2) An owner or person whoto whom the chief has designated	595
issued an order designating the chemical identity, amount,	596
concentration, or purpose of a product, fluid, or substance or of	597
a chemical component in a product, fluid, or substanceor chemical	598
name or other specific information pertaining to a chemical as a	599
trade secret pursuant to division (I)(1) of this section shall	600
maintain the records for such a product, fluid, or substance or	601
for a chemical component in a product, fluid, or substance	602
chemical for a period of not less than two years after the date on	603
which each such product, fluid, or substance or each such chemical	604
component in a product, fluid, or substancechemical was placed in	605
the well. Upon the request of the chief, the owner or person, as	606
applicable, shall disclose the records to the chief if the	607
information is necessary to respond to a spill, release, or	608
investigation. However, the chief shall not disclose the	609
information that is designated as a trade secret.	610

(K)(1) For purposes of correcting inaccuracies and	611
incompleteness in chemical information required by divisions	612
(A)(9) and (10) and (B)(3) of this section, an owner shall be	613
considered in substantial compliance if the owner has made	614
reasonable efforts to obtain the required information from the	615
supplier.	616

(2) For purposes of reporting under this section, an owner is	617
not required to report chemicals that occur incidentally or in	618
trace amounts.	619

(L) At the same time that a well completion record is	620
submitted in accordance with division (A) of this section and at	621
the same time that a report is submitted under division (B)(3) of	622
this section, the owner separately shall submit to the chief the	623
information that is required in division (A)(9) or (10) or (B)(3)	624
of this section, as applicable. However, the information also	625
shall include the specific chemical identity or chemical name or	626
other specific information pertaining to a chemical, as	627
applicable, for which the chief has issued an order under division	628
(I)(1) of this section approving a request for trade secret	629
designation. The chief shall maintain a database consisting of the	630
information received pursuant to this division and shall disclose	631
the information in the database only for the purposes specified in	632
division (H) of this section. The chief may adopt rules in	633
accordance with Chapter 119. of the Revised Code that are	634
necessary for the administration of this division.	635

Sec. 1509.31.  (A) Whenever the entire interest of an oil and	636
gas lease is assigned or otherwise transferred, the assignor or	637
transferor shall notify the holders of the royalty interests, and,	638
if a well or wells exist on the lease, the division of oil and gas	639
resources management, of the name and address of the assignee or	640
transferee by certified mail, return receipt requested, not later	641
than thirty days after the date of the assignment or transfer.	642
When notice of any such assignment or transfer is required to be	643
provided to the division, it shall be provided on a form	644
prescribed and provided by the division and verified by both the	645
assignor or transferor and by the assignee or transferee and shall	646
be accompanied by a nonrefundable fee of one hundred dollars for	647
each well. The notice form applicable to assignments or transfers	648
of a well to the owner of the surface estate of the tract on which	649
the well is located shall contain a statement informing the	650
landowner that the well may require periodic servicing to maintain	651
its productivity; that, upon assignment or transfer of the well to	652
the landowner, the landowner becomes responsible for compliance	653
with the requirements of this chapter and rules adopted under it,	654
including, without limitation, the proper disposal of brine	655
obtained from the well, the plugging of the well when it becomes	656
incapable of producing oil or gas, and the restoration of the well	657
site; and that, upon assignment or transfer of the well to the	658
landowner, the landowner becomes responsible for the costs of	659
compliance with the requirements of this chapter and rules adopted	660
under it and the costs for operating and servicing the well.	661

(B) When the entire interest of a well is proposed to be	662
assigned or otherwise transferred to the landowner for use as an	663
exempt domestic well, the owner who has been issued a permit under	664
this chapter for the well shall submit to the chief of the	665
division of oil and gas resources management an application for	666
the assignment or transfer that contains all documents that the	667
chief requires and a nonrefundable fee of one hundred dollars. The	668
application for such an assignment or transfer shall be prescribed	669
and provided by the chief. The chief may approve the application	670
if the application is accompanied by a release of all of the oil	671
and gas leases that are included in the applicable formation of	672
the drilling unit, the release is in a form such that the well	673
ownership merges with the fee simple interest of the surface	674
tract, and the release is in a form that may be recorded. However,	675
if the owner of the well does not release the oil and gas leases	676
associated with the well that is proposed to be assigned or	677
otherwise transferred or if the fee simple tract that results from	678
the merger of the well ownership with the fee simple interest of	679
the surface tract is less than five acres, the proposed exempt	680
domestic well owner shall post a five thousand dollar bond with	681
the division prior to the assignment or transfer of the well to	682
ensure that the well will be properly plugged. The chief, for good	683
cause, may modify the requirements of this section governing the	684
assignment or transfer of the interests of a well to the	685
landowner. Upon the assignment or transfer of the well, the owner	686
of an exempt domestic well is not subject to the severance tax	687
levied under section 5749.02 of the Revised Code, but is subject	688
to all applicable fees established in this chapter.	689

(C) The owner holding a permit under section 1509.05 of the	690
Revised Code is responsible for all obligations and liabilities	691
imposed by this chapter and any rules, orders, and terms and	692
conditions of a permit adopted or issued under it, and no	693
assignment or transfer by the owner relieves the owner of the	694
obligations and liabilities until and unless the assignee or	695
transferee files with the division the information described in	696
divisions (A)(1), (2), (3), (4), (5), (10), (11), and (12)(13) of	697
section 1509.06 of the Revised Code; obtains liability insurance	698
coverage required by section 1509.07 of the Revised Code, except	699
when none is required by that section; and executes and files a	700
surety bond, negotiable certificates of deposit or irrevocable	701
letters of credit, or cash, as described in that section. Instead	702
of a bond, but only upon acceptance by the chief, the assignee or	703
transferee may file proof of financial responsibility, described	704
in section 1509.07 of the Revised Code. Section 1509.071 of the	705
Revised Code applies to the surety bond, cash, and negotiable	706
certificates of deposit and irrevocable letters of credit	707
described in this section. Unless the chief approves a	708
modification, each assignee or transferee shall operate in	709
accordance with the plans and information filed by the permit	710
holder pursuant to section 1509.06 of the Revised Code.	711

(D) If a mortgaged property that is being foreclosed is	712
subject to an oil or gas lease, pipeline agreement, or other	713
instrument related to the production or sale of oil or natural gas	714
and the lease, agreement, or other instrument was recorded	715
subsequent to the mortgage, and if the lease, agreement, or other	716
instrument is not in default, the oil or gas lease, pipeline	717
agreement, or other instrument, as applicable, has priority over	718
all other liens, claims, or encumbrances on the property so that	719
the oil or gas lease, pipeline agreement, or other instrument is	720
not terminated or extinguished upon the foreclosure sale of the	721
mortgaged property. If the owner of the mortgaged property was	722
entitled to oil and gas royalties before the foreclosure sale, the	723
oil or gas royalties shall be paid to the purchaser of the	724
foreclosed property.	725

Section 2.  That existing sections 1509.06, 1509.10, and	726
1509.31 of the Revised Code are hereby repealed.	727