Bill Text: OH SB196 | 2009-2010 | 128th General Assembly | Introduced

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Bill Title: To revise the Oil and Gas Law.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2009-10-28 - To Environment & Natural Resources [SB196 Detail]

Download: Ohio-2009-SB196-Introduced.html

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As Introduced

128th General Assembly Regular Session 2009-2010

S. B. No. 196

Senator Grendell 

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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

12

revise 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	216
applicable, 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	391
or rules adopted under it, terms and conditions of a permit	392
issued under it, a registration certificate that is required	393
under this chapter, or orders issued under this chapter. A	394
citation may be in the form of a compliance notice,	395
administrative order, or letter.	396

(C) The chief may issue an order to initiate an enforcement	397
action for a material and substantial violation. In addition, the	398
chief may issue a suspension order for failure to comply with an	399
enforcement action for a material and substantial violation or	400
other violation.	401

(D)(1) The chief may order the immediate suspension of	402
drilling, operating, or plugging activities that are related to a	403
material and substantial violation and suspend and revoke an	404
unused permit after finding that a permittee is causing,	405
engaging in, or maintaining a condition or activity that the	406
chief determines presents an immediate danger to the health or	407
safety of the public or that results in or is likely to result	408
in substantial damage to the natural resources of this state.	409
The chief may issue such an order without prior notification if	410
reasonable attempts to notify the permittee have failed or if	411
the permittee has failed to comply with prior enforcement	412
actions, but in such an event notification shall be given as	413
soon thereafter as practical.	414

(2) Not later than five days after the issuance of a	415
suspension order, the chief shall provide the permittee an	416
opportunity to be heard and to present evidence that the	417
condition or activity does not present an immediate danger to	418
the public health or safety or is not likely to result in	419
substantial damage to natural resources. If the chief, after	420
considering evidence presented by the permittee, determines that	421
the activities do not present such a threat, the chief shall	422
revoke the suspension order.	423

Notwithstanding any other provision of this chapter, the	424
permittee may appeal a suspension order to the court of common	425
pleas of the county in which the activity that is the subject	426
of the order is located. In such an appeal, any person may file a	427
motion to intervene to uphold a suspension order if the person	428
demonstrates that the person has an interest that is or may be	429
adversely affected by the activity for which the chief has issued	430
a suspension order under this section. If the court upholds the	431
suspension order, the court may require the appellant permittee to	432
pay the court costs and reasonable attorney fees of the person	433
intervening.	434

The chief also may issue a bond forfeiture order pursuant to	435
section 1509.071 of the Revised Code.	436

The chief may notify drilling contractors, transporters,	437
service companies, or other similar entities of the compliance	438
status of an operator.	439

(3) If the permittee fails to comply with a prior	440
enforcement action, the chief may issue a suspension order	441
without prior notification, but in such an event the chief shall	442
give notice as soon thereafter as practical. Not later than five	443
calendar days after the issuance of an order, the chief shall	444
provide the permittee an opportunity to be heard and to present	445
evidence that required records, reports, or logs have been	446
submitted. If the chief, after considering the evidence	447
presented by the permittee, determines that the reporting	448
requirements have been satisfied, the chief shall revoke the	449
suspension order.	450

Notwithstanding any other provision of this chapter, the	451
permittee may appeal a suspension order to the court of common	452
pleas of the county in which the activity that is the subject of	453
the suspension order is located. In such an appeal, any person	454
may file a motion to intervene to uphold a suspension order if the	455
person demonstrates that the person has an interest that is or may	456
be adversely affected by the activity for which the chief has	457
issued a suspension order under this section. If the court upholds	458
the suspension order, the court may require the appellant	459
permittee to pay the court costs and reasonable attorney's fees of	460
the person intervening.	461

The chief also may issue a bond forfeiture order pursuant to	462
section 1509.071 of the Revised Code.	463

(E) The prosecuting attorney of the county or the attorney	464
general, upon the request of the chief, may apply to the court of	465
common pleas in the county in which any of the provisions of this	466
chapter or any rules, terms or conditions of a permit or	467
registration certificate, or orders adopted or issued pursuant to	468
this chapter are being violated for a temporary restraining order,	469
preliminary injunction, or permanent injunction restraining any	470
person from such violation. In such an action, any person may file	471
a motion to intervene for the issuance of a temporary restraining	472
order, preliminary injunction, or permanent injunction if the	473
person demonstrates that the person has an interest that is or may	474
be adversely affected by the violation for which the prosecuting	475
attorney or attorney general has commenced the action.	476

(F) The chief may enter into a compliance agreement by	477
consent decree if such an agreement will end a violation.	478

(G) The chief may request a peace officer or a fire	479
department to respond to the surface location of a well and	480
temporarily assist the division of mineral resources management in	481
the enforcement or administration of this chapter until a mineral	482
resources inspector arrives at the well.	483

Sec. 1509.05.  No person shall drill a new well, drill an	484
existing well any deeper, reopen a well, convert a well to any use	485
other than its original purpose, or plug back a well to a source	486
of supply different from the existing pool, without having a	487
permit to do so issued by the chief of the division of mineral	488
resources management, and until. However, the chief shall not	489
issue such a permit to a person unless the terms and conditions of	490
the permit will not conflict with any zoning, health, and safety	491
ordinances and resolutions that are in effect in the municipal	492
corporation or the township where the drilling tract and the well	493
are to be located.	494

A permittee shall post or display the original permit or a	495
photostatic copy thereof is posted or displayed in a conspicuous	496
and easily accessible place at the well site, with the name,	497
current address, and telephone number of the permit holder	498
permittee and the telephone numbers for fire and emergency medical	499
services maintained on the posted permit or copy. The permit or a	500
copy shall be continuously displayed in suchthat manner at all	501
times during the work authorized by the permit.	502

SuchA permit shall be issued by the chief in accordance with	503
this chapter andfor a well that is or is to be located in an	504
urbanized area shall be valid for twelve months, and a permit for	505
a well that is or is to be located in any other area shall be	506
valid for twenty-four months.	507

Sec. 1509.051. A permit or order issued by the chief of the	508
division of mineral resources management under this chapter shall	509
not authorize or allow a permittee or any other person to do any	510
of the following:	511

(A) Drill an oil or gas well within the boundaries of a	512
state, municipal, or township park or within a recreational area	513
or nature preserve;	514

(B) Drill an oil or gas well within two thousand feet of a	515
lake, stream, or other body of water that is used as a source of	516
drinking water;	517

(C) Drill an oil or gas well without the use of a blow-out	518
preventer;	519

(D) Bury hazardous waste, radioactive material, or chemicals	520
used in fracturing subsurface strata or otherwise dispose of any	521
toxic substance at the location of a well. As used in this	522
division:	523

(1) "Hazardous waste" has the same meaning as in section	524
3734.01 of the Revised Code.	525

(2) "Radioactive material" has the same meaning as in section	526
3748.01 of the Revised Code.	527

(3) "Toxic substance" has the same meaning as in section	528
3716.01 of the Revised Code.	529

(E) Drill a new well or drill an existing well deeper without	530
implementing best operating standards and practices that are	531
recognized by the oil and gas industry.	532

Sec. 1509.06. (A) An application for a permit to drill a new	533
well, drill an existing well deeper, reopen a well, convert a well	534
to any use other than its original purpose, or plug back a well to	535
a different source of supply, including associated production	536
operations, shall be filed with the chief of the division of	537
mineral resources management upon such form as the chief	538
prescribes and shall contain each of the following that is	539
applicable:	540

(1) The name and address of the ownerapplicant and, if a	541
corporation, the name and address of the statutory agent;. In	542
addition, the application shall include the name and telephone	543
number of a person that may be contacted in an emergency and who	544
is located within a twenty-minute travel time from the location of	545
the proposed well or well.	546

(2) The signature of the ownerapplicant or the owner's	547
applicant's authorized agent. When an authorized agent signs an	548
application, it shall be accompanied by a certified copy of the	549
appointment as such agent.	550

(3) The names and addresses of all persons holding the	551
royalty interest in the tract upon which the well is located or is	552
to be drilled or within a proposed drilling unit;	553

(4) The location of the tract or drilling unit on which the	554
well is located or is to be drilled identified by section or lot	555
number, city, village, township, and county;	556

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

557

(6) The geological formation to be tested or used and the	558
proposed total depth of the well;	559

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

560

(8) If the well is for the injection of a liquid, identity of	561
the geological formation to be used as the injection zone and the	562
composition of the liquid to be injected;	563

(9) For an application for a permit to drill a new well, aA	564
sworn statement that the applicant has provided notice of the	565
application to the owner of each occupiedeach person residing in	566
a dwelling unit that is located within five hundredthree thousand	567
feet of the surface location of the proposed well if the surface	568
location will be less than five hundred feet from the boundary of	569
the drilling unit and more than fifteen occupied dwelling units	570
are located less than five hundred feet from the surface location	571
of the well, excluding any dwelling that is located on real	572
property all or any portion of which is included in the drilling	573
unitor well. The notice shall contain athe following statement	574
that an application has been filed with the division of mineral	575
resources management, identify the name of the applicant and the	576
proposed well location, include the name and address of the	577
division, and contain a statement that comments regarding the	578
application may be sent to the division:	579

"PLEASE BE ADVISED. AN APPLICATION HAS BEEN FILED WITH THE	580
DIVISION OF MINERAL RESOURCES MANAGEMENT IN THE DEPARTMENT OF	581
NATURAL RESOURCES FOR A PERMIT TO DRILL AN OIL OR GAS WELL ON	582
PROPERTY LOCATED AT [address of the location of the proposed	583
surface location or surface location of the well]. A PUBLIC	584
MEETING WILL BE HELD [location, date, and time of the meeting] AT	585
WHICH YOU MAY APPEAR AND COMMENT ON WHETHER THE APPLICATION FOR	586
THE PERMIT SHOULD BE APPROVED. If YOU CANNOT ATTEND THE MEETING,	587
YOU MAY CONTACT THE DIVISION AT [telephone number of the division	588
of mineral resources management] TO PROVIDE YOUR COMMENTS. THE	589
COMMENT PERIOD CONCERNING THE APPLICATION CLOSES [date that is	590
seven business days after the date of the scheduled public	591
meeting]. PLEASE REFER TO APPLICATION NUMBER [number of the	592
application] WHEN YOU PROVIDE YOUR COMMENTS. THE APPLICATION WAS	593
FILED BY [name and phone number of the person that filed the	594
application and the name of the person's statutory agent, if	595
applicable]. The"	596

The notice shall be issued not later than fifteen days prior	597
to the date of the public meeting that is required under this	598
section and may be provided by hand delivery or regular mail. In	599
addition, not later than fifteen days prior to the public meeting,	600
the notice shall be published in a newspaper of general	601
circulation in the county in which the well is to be or is	602
located. The identity of the owners of occupiedpersons residing	603
in dwelling units shall be determined using the tax records and	604
property records of the municipal corporation or county in which	605
the dwelling unit is located as of the date of the notice.	606

(10) A description of the qualifications of the person who	607
will drill, reopen, convert, or plug back the well, including a	608
description of the drilling procedures and safety procedures that	609
will be used and if those procedures are consistent with the best	610
standards and practices that are recognized by the oil and gas	611
industry. The description also shall include an explanation of the	612
person's experience concerning oil and gas well operations, the	613
person's safety record for such operations, and information	614
concerning the condition and maintenance of the person's equipment	615
that will be used.	616

(11) A plan for restoration of the land surface disturbed by	617
drilling operations. The plan shall provide for compliance with	618
the restoration requirements of division (A) of section 1509.072	619
of the Revised Code and any rules adopted by the chief pertaining	620
to that restoration.	621

(11)(12) A description by name or number of the county,	622
township, and municipal corporation roads, streets, and highways	623
that the applicant anticipates will be used for access to and	624
egress from the well site;	625

(12)(13) Such other relevant information as the chief	626
prescribes by rule.	627

Each application shall be accompanied by a map, on a scale	628
not smaller than four hundred feet to the inch, prepared by an	629
Ohio registered surveyor, showing the location of the well and	630
containing such other data as may be prescribed by the chief. If	631
the well is or is to be located within the excavations and	632
workings of a mine, the map also shall include the location of the	633
mine, the name of the mine, and the name, address, and telephone	634
number of the person operating the mine.	635

(B) The chief shall cause a copy of the weekly circular	636
prepared by the division to be provided to the county engineer of	637
each county that contains active or proposed drilling activity.	638
The weekly circular shall contain, in the manner prescribed by the	639
chief, the names of all applicants for permits, the location of	640
each well or proposed well, the information required by division	641
(A)(11) of this section, and any additional information the chief	642
prescribes. In addition, the chief promptly shall transfer an	643
electronic copy or facsimile, or if those methods are not	644
available to a municipal corporation or township, a copy via	645
regular mail, of a drilling permit application to the clerk of the	646
legislative authority of the municipal corporation or to the clerk	647
of the township in which the well or proposed well is or is to be	648
located if the legislative authority of the municipal corporation	649
or the board of township trustees has asked to receive copies of	650
such applications and the appropriate clerk has provided the chief	651
an accurate, current electronic mailing address or facsimile	652
number, as applicable(1) Not later than five days after receipt of	653
an application and the applicable fee, the chief shall provide	654
written notification that the application has been filed to the	655
director of environmental protection, the fire chief of the fire	656
department within whose jurisdiction the well that is the subject	657
of the application will be or is located, and the local inspector	658
within whose jurisdiction the well that is the subject of the	659
application will be or is located. The notice shall be sent	660
electronically or by regular mail and shall be posted on the	661
division of mineral resources management's web site. In addition,	662
the chief shall schedule a date and a time that is mutually	663
acceptable to all of the persons that the chief has so notified	664
for an inspection of the site that is the subject of the	665
application for purposes of division (C)(2) of this section.	666

(2) The chief shall maintain a database on the division of	667
mineral resources management's web site that is accessible to and	668
searchable by the public. The database shall contain all of the	669
following:	670

(a) A listing of all wells that are being drilled and of all	671
wells that are proposed to be drilled in this state;	672

(b) The names and contact information of all permit holders	673
and applicants for permits under this chapter;	674

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

675

(d) The information that is required by divisions (A)(1),	676
(4), (5), (8), and (12) of this section for each permit	677
application;	678

(e) The map that is required by division (A) of this section	679
for each permit application;	680

(f) Any other information that the chief requires.

681

(C) The chief shall not issue a permit for at least ten days	682
after the date of filing of the application for the permit unless,	683
upon reasonable cause shown, the chief waives that period or a	684
request for expedited review is filed under this section. However,	685
the chief shall issue a permit within twenty-one days of the	686
filing of the application unless the chief denies the application	687
by orderUpon receipt of an application and all accompanying	688
information that is required by this section, but before	689
determining whether to approve an application, approve an	690
application with modifications, or deny an application, the chief	691
shall do all of the following:	692

(1) Review the application for compliance with division (A)	693
of this section and rules adopted pursuant to it. If the chief	694
finds any errors or omissions in an application, the chief	695
immediately shall notify the applicant of the errors and	696
omissions. Not later than thirty days after receipt of such a	697
notice, an applicant shall correct the errors and omissions. If	698
the applicant does not correct all of the errors and omissions	699
within thirty days after receipt of the notice, the chief shall	700
deny the application.	701

(2) Conduct an inspection of the surface location of the	702
proposed well or well together with an inspector from the	703
environmental protection agency, the fire chief of the fire	704
department within whose jurisdiction the well that is the subject	705
of the application will be or is located, and the local inspector	706
within whose jurisdiction the well that is the subject of the	707
application will be or is located to determine if the location and	708
operation will comply with state and federal environmental laws,	709
applicable fire codes, and local zoning, health, and safety	710
requirements. Any person participating in such an inspection may	711
submit a written objection to the chief opposing the issuance of a	712
permit to the applicant. If the chief receives a written objection	713
prior to approving the application or approving the application	714
with modifications, the chief shall deny the application.	715

(3) Review the qualifications of the applicant to determine	716
if the applicant is qualified to perform the proposed operation in	717
compliance with the requirements established in this chapter and	718
rules adopted under it. In reviewing the applicant's	719
qualifications, the chief may consider the applicant's current	720
violations or unresolved violations of prior orders as grounds for	721
denying the application. In addition, the chief shall deny an	722
application if the applicant has been issued a notice of material	723
and substantial violation or a suspension order and the applicant	724
continues to be in substantial noncompliance.	725

(4) Conduct at a minimum one public meeting concerning the	726
proposed well or well and provide the applicant and any interested	727
person an opportunity to be heard and to submit comments. The	728
public meeting shall be conducted in the municipal corporation or	729
township in which the well or proposed well is or is to be	730
located.	731

Upon satisfaction of the requirements established in	732
divisions (C)(1) to (4) of this section, the chief shall issue an	733
order approving the permit, approving the permit with	734
modifications, or denying the permit in accordance with the time	735
frames established in divisions (D) and (E) of this section. The	736
chief shall issue an order denying a permit if the chief	737
determines that the applicant is not qualified to perform the	738
proposed drilling, reopening, converting, or plugging in	739
compliance with the requirements established in this chapter and	740
rules adopted under it. An applicant who is denied a permit by the	741
chief may appeal the chief's order denying the permit in	742
accordance with section 1509.36 of the Revised Code.	743

(D)(1) The chief shall not issue a permit for a well that is	744
or is to be located in an urbanized area until all of the	745
requirements established in division (C) of this section are	746
satisfied or until thirty days after the receipt of the	747
application for the permit, whichever time period is longer.	748
However, the chief shall issue a permit after all of the	749
requirements established in division (C) of this section are	750
satisfied or within thirty-five days after receipt of the	751
application for the permit, whichever time period is longer,	752
unless the chief denies the application by order.	753

(2) The chief shall not issue a permit for a well that is or	754
is to be located in an area that is not an urbanized area until	755
all of the requirements established in division (C) of this	756
section are satisfied or until thirty-five days after the receipt	757
of the application for the permit, whichever time period is	758
longer, unless a request for an expedited review is filed under	759
this section or the chief denies the application by order.	760

(E) An applicant may file a request with the chief for	761
expedited review of a permit application if the well is not or is	762
not to be located in an urbanized area, in a gas storage reservoir	763
or, in a reservoir protective area, as "reservoir protective area"	764
is defined in section 1571.01 of the Revised Code or, in a natural	765
area or nature preserve as defined in section 1517.01 of the	766
Revised Code. If the well is or is to be located in a coal bearing	767
township, the application shall be accompanied by the affidavit of	768
the landowner prescribed in section 1509.08 of the Revised Code.	769

In addition to a complete application for a permit that meets	770
the requirements of this section and the permit fee prescribed by	771
this section, a request for expedited review shall be accompanied	772
by a separate nonrefundable filing fee of five hundred dollars.	773
Upon the filing of a request for expedited review, the chief shall	774
cause the county engineer of the county in which the well is or is	775
to be located to be notified of the filing of the permit	776
application and the request for expedited review by telephone or	777
other means that in the judgment of the chief will provide timely	778
notice of the application and request. TheIf all of the	779
requirements established in division (C) of this section are	780
satisfied, the chief shall issue a permit within seventwenty-five	781
days of the filing of the requestapplication unless the chief	782
denies the application by order. Notwithstanding the provisions	783
of this section governing expedited review of permit applications,	784
the chief may refuse to accept requests for expedited review if,	785
in the chief's judgment, the acceptance of the requests would	786
prevent the issuance, within twenty-one days of their filing, of	787
permits for which applications are pending.	788

(E)(F) A well shall be drilled and operated in exact	789
accordance with the plans, sworn statements, and other information	790
submitted in the approved application and with all terms and	791
conditions of the permit. A permittee shall notify the chief or a	792
mineral resources inspector within twenty-four hours of a	793
violation of any term or condition of the permit that occurs	794
during drilling operations.	795

(F) The chief shall issue an order denying a permit if the	796
chief finds that there is a substantial risk that the operation	797
will result in violations of this chapter or rules adopted under	798
it that will present an imminent danger to public health or safety	799
or damage to the environment, provided that where the chief finds	800
that terms or conditions to the permit can reasonably be expected	801
to prevent such violations, the chief shall issue the permit	802
subject to those terms or conditions, including, if applicable,	803
terms and conditions regarding subjects identified in rules	804
adopted under section 1509.03 of the Revised Code.	805

(G) Each application for a permit required by section 1509.05	806
of the Revised Code, except an application to plug back an	807
existing well that is required by that section and an application	808
for a well drilled or reopened for purposes of section 1509.22 of	809
the Revised Code, also shall be accompanied by a nonrefundable fee	810
as follows:	811

(1) TwoFive hundred fifty dollars for a permit to conduct	812
activities in a township with a population of fewer than five	813
thousand;	814

(2) FiveOne thousand five hundred dollars for a permit to	815
conduct activities in a township with a population of five	816
thousand or more, but fewer than ten thousand;	817

(3) Seven hundred fiftyTwo thousand five hundred dollars for	818
a permit to conduct activities in a township with a population of	819
ten thousand or more, but fewer than fifteen thousand;	820

(4) OneThree thousand five hundred dollars for a permit to	821
conduct activities in either of the following:	822

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

823

(b) A municipal corporation regardless of population.

824

For purposes of calculating fee amounts, populations shall be	825
determined using the most recent federal decennial census.	826

Each application for the revision or reissuance of a permit	827
shall be accompanied by a nonrefundable fee of two hundred fifty	828
dollars. Each application for the reissuance of a permit shall be	829
accompanied by a nonrefundable fee of five hundred dollars.	830

(H) The chief may order the immediate suspension of drilling,	831
operating, or plugging activities after finding that any person is	832
causing, engaging in, or maintaining a condition or activity that	833
in the chief's judgment presents an imminent danger to public	834
health or safety or results in or is likely to result in immediate	835
substantial damage to natural resources or for nonpayment of a fee	836
required by this section. The chief may order the immediate	837
suspension of the drilling or reopening of a well in a coal	838
bearing township after determining that the drilling or reopening	839
activities present an imminent and substantial threat to public	840
health or safety or to miners' health or safety. Before issuing	841
any such order, the chief shall notify the owner in such manner as	842
in the chief's judgment would provide reasonable notification that	843
the chief intends to issue a suspension order. The chief may issue	844
such an order without prior notification if reasonable attempts to	845
notify the owner have failed, but in such an event notification	846
shall be given as soon thereafter as practical. Within five	847
calendar days after the issuance of the order, the chief shall	848
provide the owner an opportunity to be heard and to present	849
evidence that the condition or activity is not likely to result in	850
immediate substantial damage to natural resources or does not	851
present an imminent danger to public health or safety or to	852
miners' health or safety, if applicable. In the case of	853
activities in a coal bearing township, if the chief, after	854
considering evidence presented by the owner, determines that the	855
activities do not present such a threat, the chief shall revoke	856
the suspension order. Notwithstanding any provision of this	857
chapter, the owner may appeal a suspension order directly to the	858
court of common pleas of the county in which the activity is	859
located or, if in a coal bearing township, to the reclamation	860
commission under section 1513.13 of the Revised CodeIf the chief	861
finds that a permittee is drilling or conducting other operations	862
in violation of a permit, the requirements established in this	863
chapter, or rules adopted under it and there is substantial risk	864
that the drilling or operations likely will result in danger to	865
the health or safety of the public or damage to the environment,	866
the chief shall issue an order to the permittee to cease or	867
correct the violation immediately. If the permittee does not cease	868
or correct the violation and appears to continue the violation,	869
the chief shall issue an order that revokes the permittee's permit	870
and that requires the permittee to cease drilling or other	871
operations immediately.	872

Sec. 1509.061. An owner of a well who has been issued a	873
permit under section 1509.06 of the Revised CodeA permittee may	874
submit to the chief of the division of mineral resources	875
management, on a form prescribed by the chief, a request to revise	876
an existing tract upon which exists a producing or idlethe terms	877
and conditions of a permit for the drilling of a well. The chief	878
shall adopt, and may amend and rescind, rules under section	879
1509.03 of the Revised Code that are necessary for the	880
administration of this section. The rules at least shall stipulate	881
the information to be included on the request form and shall	882
establish a fee to be paid by the person submitting the request,	883
which fee shall not exceed two hundred fifty dollarsthe amount	884
of the applicable fee established in division (G) of section	885
1509.06 of the Revised Code.	886

The chief shall not approve a request submitted under this	887
section unless itif approving the request would result in a	888
violation of this chapter or rules adopted under it, including	889
provisions establishing spacing or minimum acreage requirements.	890

Sec. 1509.062. (A)(1) The permittee of a well that has not	891
been completed, a well that has not produced within one year	892
after completion, or an existing well that has no reported	893
production for two consecutive reporting periods as reported in	894
accordance with section 1509.11 of the Revised Code shall plug	895
the well in accordance with section 1509.12 of the Revised Code,	896
obtain temporary inactive well status for the well in accordance	897
with this section, or perform another activity regarding the well	898
that is approved by the chief of the division of mineral	899
resources management.	900

(2) If a well has a reported annual production that is less	901
than one hundred thousand cubic feet of natural gas or fifteen	902
barrels of crude oil, or a combination of natural gas or crude oil	903
in an amount that is determined by the chief, the chief may	904
require the permittee of the well to submit an application for	905
temporary inactive well status under this section for the well.	906

(B) In order for the permittee of a well to submit an	907
application for temporary inactive well status for the well under	908
this division, the permittee and the well shall be in compliance	909
with this chapter and rules adopted under it, any terms and	910
conditions of the permit for the well, and applicable orders	911
issued by the chief. An application for temporary inactive status	912
for a well shall be submitted to the chief on a form prescribed	913
and provided by the chief and shall contain all of the following:	914

(1) The permittee's name and address and, if the permittee	915
is a corporation, the name and address of the corporation's	916
statutory agent;	917

(2) The signature of the permittee or of the permittee's	918
authorized agent. When an authorized agent signs an application,	919
the application shall be accompanied by a certified copy of the	920
appointment as such agent.	921

(3) The permit number assigned to the well. If the well has	922
not been assigned a permit number, the chief shall assign a permit	923
number to the well.	924

(4) A map, on a scale not smaller than four hundred feet to	925
the inch, that shows the location of the well and the tank	926
battery, that includes the latitude and longitude of the well, and	927
that contains all other data that are required by the chief;	928

(5) A demonstration that the well is of future utility and	929
that the applicant has a viable plan to utilize the well within a	930
reasonable period of time;	931

(6) A demonstration that the well poses no threat to the	932
health or safety of persons, property, or the environment;	933

(7) Any other relevant information that the chief prescribes	934
by rule.	935

The chief may waive any of the requirements established in	936
divisions (B)(1) to (6) of this section if the division of mineral	937
resources management possesses a current copy of the information	938
or document that is required in the applicable division.	939

(C) Upon receipt of an application for temporary inactive	940
well status, the chief shall review the application and shall	941
either deny the application by issuing an order or approve the	942
application. The chief shall approve the application only if the	943
chief determines that the well that is the subject of the	944
application poses no threat to the health or safety of persons,	945
property, or the environment. If the chief approves the	946
application, the chief shall notify the applicant of the chief's	947
approval. Upon receipt of the chief's approval, the permittee	948
shall shut in the well and empty all liquids and gases from all	949
storage tanks, pipelines, and other equipment associated with the	950
well. In addition, the permittee shall maintain the well, other	951
equipment associated with the well, and the surface location of	952
the well in a manner that prevents hazards to the health and	953
safety of people and the environment. The permittee shall inspect	954
the well at least every six months and submit to the chief within	955
fourteen days after the inspection a record of inspection on a	956
form prescribed and provided by the chief.	957

(D) Not later than thirty days prior to the expiration of	958
temporary inactive well status or a renewal of temporary inactive	959
well status approved by the chief for a well, the permittee of the	960
well may submit to the chief an application for renewal of the	961
temporary inactive well status on a form prescribed and provided	962
by the chief. The application shall include a detailed plan that	963
describes the ultimate disposition of the well, the time frames	964
for that disposition, and any other information that the chief	965
determines is necessary. The chief shall either deny an	966
application by order or approve the application. If the chief	967
approves the application, the chief shall notify the permittee of	968
the well of the chief's approval.	969

(E) The chief may require a permittee to provide a surety	970
bond in an amount not to exceed ten thousand dollars for each of	971
the permittee's wells that has been approved by the chief for	972
temporary inactive well status.	973

(F) An application for temporary inactive well status shall	974
be accompanied by a nonrefundable fee of one hundred dollars. An	975
application for a renewal of temporary inactive well status shall	976
be accompanied by a nonrefundable fee of two hundred fifty dollars	977
for the first renewal and five hundred dollars for each subsequent	978
renewal.	979

(G) Temporary inactive well status approved by the chief	980
expires one year after the date of approval of the application for	981
temporary inactive well status or production from the well	982
commences, whichever occurs sooner. In addition, a renewal of a	983
temporary inactive well status expires one year after the	984
expiration date of the initial temporary inactive well status or	985
one year after the expiration date of the previous renewal of the	986
temporary inactive well status, as applicable, or production from	987
the well commences, whichever occurs sooner.	988

(H) The permittee of a well that has been approved by the	989
chief for temporary inactive well status may commence production	990
from the well at any time. Not later than sixty days after the	991
commencement of production from such a well, the permittee shall	992
notify the chief of the commencement of production.	993

(I) This chapter and rules adopted under it, any terms and	994
conditions of the permit for a well, and applicable orders issued	995
by the chief apply to a well that has been approved by the chief	996
for temporary inactive well status or renewal of that status.	997

Sec. 1509.07. An owner(A) A permittee of any well, except	998
an exempt Mississippian well or an exempt domestic well, shall	999
obtain liability insurance coverage from a company authorized to	1000
do business in this state in an amount of not less than three	1001
hundred thousandfive million dollars bodily injury coverage and	1002
three hundred thousandten million dollars property damage	1003
coverage to pay damages for injury to persons or damage to	1004
property caused by the drilling, operation, or plugging of all the	1005
owner'spermittee's wells in this state. The ownerpermittee shall	1006
maintain that coverage until all the owner'spermittee's wells are	1007
plugged and abandoned as required by lawand maintained as	1008
required by this chapter and rules adopted under it or are	1009
transferred to a permittee who has obtained insurance as required	1010
by this section and who is not under a notice of material and	1011
substantial violation or under a suspension order. The owner	1012
permittee shall provide proof of liability insurance coverage to	1013
the chief of the division of mineral resources management upon	1014
request. Upon failure of the ownerpermittee to provide that proof	1015
when requested, the chief may order the suspension of any	1016
outstanding permits and operations of the ownerpermittee until	1017
the ownerpermittee provides proof of the required insurance	1018
coverage.	1019

(B) Except as otherwise provided in this section, an ownera	1020
permittee of any well that is not an exempt Mississippian well or	1021
an exempt domestic well, before being issued a permit under	1022
section 1509.06 of the Revised Code, shall execute and file with	1023
the division of mineral resources management a surety bond in an	1024
amount equal to the estimated cost to plug the well and restore	1025
the surface location of the well and conditioned on compliance	1026
with the restoration requirements of section 1509.072, the	1027
plugging requirements of section 1509.12, the permit provisions of	1028
section 1509.13 of the Revised Code, and all rules and orders of	1029
the chief relating thereto, in an amount set by rule of the chief.	1030

The ownerpermittee of a well that is not an exempt	1031
Mississippian well or an exempt domestic well may deposit with the	1032
chief, instead of a surety bond, cash in an amount equal to the	1033
surety bond as prescribed pursuant to this section or negotiable	1034
certificates of deposit or irrevocable letters of credit, issued	1035
by any bank organized or transacting business in this state or by	1036
any savings and loan association as defined in section 1151.01 of	1037
the Revised Code, having a cash value equal to or greater than the	1038
amount of the surety bond as prescribed pursuant to this section.	1039
Cash or certificates of deposit shall be deposited upon the same	1040
terms as those upon which surety bonds may be deposited. If	1041
certificates of deposit are deposited with the chief instead of a	1042
surety bond, the chief shall require the bank or savings and loan	1043
association that issued any such certificate to pledge securities	1044
of a cash value equal to the amount of the certificate that is in	1045
excess of the amount insured by any of the agencies and	1046
instrumentalities created under the "Federal Deposit Insurance	1047
Act," 64 Stat. 873 (1950), 12 U.S.C. 1811, as amended, and	1048
regulations adopted under it, including at least the federal	1049
deposit insurance corporation, bank insurance fund, and savings	1050
association insurance fund. The securities shall be security for	1051
the repayment of the certificate of deposit.	1052

Immediately upon a deposit of cash, certificates of deposit,	1053
or letters of credit with the chief, the chief shall deliver them	1054
to the treasurer of state who shall hold them in trust for the	1055
purposes for which they have been deposited.	1056

Instead of a surety bond, the chief may accept proof of	1057
financial responsibility consisting of a sworn financial statement	1058
showing a net financial worth within this state equal to twice the	1059
amount of the bond for which it substitutes and, as may be	1060
required by the chief, a list of producing properties of the owner	1061
within this state or other evidence showing ability and intent to	1062
comply with the law and rules concerning restoration and plugging	1063
that may be required by rule of the chief. The owner of an exempt	1064
domestic or exempt Mississippian well is not required to file	1065
scheduled updates of the financial documents, but shall file	1066
updates of those documents if requested to do so by the chief. The	1067
owner of a nonexempt domestic or nonexempt Mississippian well	1068
shall file updates of the financial documents in accordance with a	1069
schedule established by rule of the chief. The chief, upon	1070
determining that an owner for whom the chief has accepted proof of	1071
financial responsibility instead of bond(C) A permittee of an	1072
exempt Mississippian well or an exempt domestic well shall	1073
demonstrate financial responsibility to the chief by providing one	1074
of the following:	1075

(1) Proof of deposits in a bank organized or transacting	1076
business in this state or in a savings and loan association as	1077
defined in section 1151.01 of the Revised Code in an amount that	1078
is equal to or greater than the amount of the surety bond that is	1079
otherwise required to be executed and filed with the chief by this	1080
section;	1081

(2) Negotiable certificates of deposit or irrevocable letters	1082
of credit issued by such a bank or savings and loan association	1083
having a cash value that is equal to or greater than the amount of	1084
the surety bond that is otherwise required to be executed and	1085
filed with the chief by this section.	1086

If the permittee of an exempt Mississippian well or an	1087
exempt domestic well cannot demonstrate financial responsibility	1088
to the satisfaction of the chief, the chief shall order that the	1089
ownerpermittee to execute and file a surety bond or deposit	1090
cash, certificates of deposit, or irrevocable letters of credit	1091
as required by this section for the wells specified in the order	1092
within ten days of receipt of the order. If the order is not	1093
complied with, all wells of the ownerpermittee that are	1094
specified in the order and for which no surety bond is filed or	1095
cash, certificates of deposit, or letters of credit are deposited	1096
shall be plugged. No ownerpermittee shall fail or refuse to	1097
plug such a well. Each day on which such a well remains unplugged	1098
thereafter constitutes a separate offense, and the chief shall	1099
assess a fine against the permittee in an amount that is not less	1100
than one thousand dollars per offense as determined by the chief.	1101

(D) A permittee shall file updates of any financial documents	1102
that are required by this section in accordance with a schedule	1103
established by rule of the chief.	1104

(E) The surety bond provided for in this section shall be	1105
executed by a surety company authorized to do business in this	1106
state that is in good standing.	1107

(F) The chief shall not approve any bond until it is	1108
personally signed and acknowledged by both principal and surety,	1109
or as to either by the principal's or surety's attorney in fact,	1110
with a certified copy of the power of attorney attached thereto.	1111
The chief shall not approve a bond unless there is attached a	1112
certificate of the superintendent of insurance that the company is	1113
authorized to transact a fidelity and surety business in this	1114
state.	1115

(G) All bonds shall be given in a form to be prescribed by	1116
the chief and shall run to the state as obligee.	1117

An owner of an exempt Mississippian well or an exempt	1118
domestic well, in lieu of filing a surety bond, cash in an amount	1119
equal to the surety bond, certificates of deposit, irrevocable	1120
letters of credit, or a sworn financial statement, may file a	1121
one-time fee of fifty dollars, which shall be deposited in the oil	1122
and gas well plugging fund created in section 1509.071 of the	1123
Revised Code.	1124

Sec. 1509.071.  (A) When the chief of the division of mineral	1125
resources management finds that an ownera permittee has failed to	1126
comply with the restoration requirements of section 1509.072,	1127
plugging requirements of section 1509.12, or permit provisions of	1128
section 1509.13 of the Revised Code, or rules and orders relating	1129
thereto, the chief shall make a finding of that fact and declare	1130
any surety bond filed to ensure compliance with those sections	1131
and rules forfeited in the amount set by rule of the chief. The	1132
chief thereupon shall certify the total forfeiture to the attorney	1133
general, who shall proceed to collect the amount of the	1134
forfeiture. In addition, the chief may require a permittee,	1135
operator, producer, or other person who forfeited a surety bond	1136
to post a new surety bond in the amount of fifteen thousand	1137
dollars for a single well, thirty thousand dollars for two wells,	1138
or fifty thousand dollars for three or more wells.	1139

In lieu of total forfeiture, the surety, at its option, may	1140
cause the well to be properly plugged and abandoned and the area	1141
properly restored or pay to the treasurer of state the cost of	1142
plugging and abandonment. The cost of plugging and abandonment of	1143
the well includes the estimated cost of maintaining the well in a	1144
safe condition that complies with rules governing plugging.	1145

(B) All moneys collected because of forfeitures of bonds as	1146
provided in this section shall be deposited in the state treasury	1147
to the credit of the oil and gas well fund created in section	1148
1509.02 of the Revised Code. The fund shall be expended by the	1149
chief for the following purposes in addition to the other purposes	1150
specified in that section:	1151

(1) In accordance with division (D) of this section, to plug	1152
idle and orphaned wells or to restore the land surface properly as	1153
required in section 1509.072 of the Revised Code for which the	1154
bonds have been forfeited, for abandoned wellsor for plugging and	1155
maintaining abandoned wells for which no funds are available to	1156
plug the wells in accordance with this chapter, or to use	1157
abandoned wells for the injection of oil or gas production wastes;	1158

(2) In accordance with division (E) of this section, to	1159
correct conditions that the chief reasonably has determined are	1160
causing imminentimmediate health or safety risks at an idle and	1161
orphaned well or a well for which the person responsible for the	1162
well cannot be contacted in order to initiate a corrective	1163
action within a reasonable period of time as determined by the	1164
chief.	1165

Expenditures from the fund shall be made only for lawful	1166
purposes.	1167

(C)(1) Upon determining that the ownerpermittee of a well	1168
has failed to properly plug and abandon it or to properly restore	1169
the land surface at the well site in compliance with the	1170
applicable requirements of this chapter and applicable rules	1171
adopted and orders issued under it or that a well is an abandoned	1172
well for which no funds are available to plug the well in	1173
accordance with this chapter, the chief shall do allboth of the	1174
following:	1175

(a) Determine from the records in the office of the county	1176
recorder of the county in which the well is located the identity	1177
of the owner of the land on which the well is located, the	1178
identity of the ownerpermittee of the oil or gas lease under	1179
which the well was drilled or the identity of each person owning	1180
an interest inand, if different from the permittee, the present	1181
holder of the lease, and the identities of the persons having	1182
legal title to, or a lien upon, any of the equipment appurtenant	1183
to the well;	1184

(b) Mail notice to the owner of the land on which the well is	1185
located informing the landowner that the well is to be plugged. If	1186
the owner of the oil or gas lease under which the well was drilled	1187
is different from the owner of the well or if any persons other	1188
than the owner of the well own interests in the lease, the chief	1189
also shall mail notice that the well is to be plugged to the owner	1190
of the lease or to each person owning an interest in the lease, as	1191
appropriate.	1192

(c) Mail notice to each person having legal title to, or a	1193
lien upon, any equipment appurtenant to the well,identified under	1194
division (C)(1)(a) of this section informing the person that the	1195
well is to be plugged and offering the person the opportunity to	1196
plug the well and restore the land surface at the well site at the	1197
person's own expense in order to avoid fines, penalties, or	1198
forfeiture of the equipment to this state.	1199

(2) If none of the persons described in division (C)(1)(c)(a)	1200
of this section plugs the well within sixty days after the	1201
mailing of the notice required by that division (C)(1)(b) of this	1202
section, all equipment appurtenant to the well is hereby declared	1203
to be forfeited to this state without compensation and without	1204
the necessity for any action by the state for use to defray the	1205
cost of plugging and abandoning the well and restoring the land	1206
surface at the well site.	1207

(D) Expenditures from the fund for the purpose of division	1208
(B)(1) of this section shall be made in accordance with either of	1209
the following:	1210

(1) The expenditures may be made pursuant to contracts	1211
entered into by the chief with persons who agree to furnish all of	1212
the materials, equipment, work, and labor as specified and	1213
provided in such a contract for activities associated with the	1214
restoration or plugging of a well as determined by the chief. The	1215
activities may include excavation to uncover a well, geophysical	1216
methods to locate a buried well when clear evidence of leakage	1217
from the well exists, cleanout of wellbores to remove material	1218
from a failed plugging of a well, plugging operations,	1219
installation of vault and vent systems, including associated	1220
engineering certifications and permits, restoration of property,	1221
and repair of damage to property that is caused by such	1222
activities. However, expenditures shall not be made to purchase	1223
property or to remove a dwelling in order to access a well. Agents	1224
or employees of persons contracting with the chief for thea	1225
restoration,or plugging, and injection projectsproject may enter	1226
upon any land, public or private, on which the well is located for	1227
the purpose of performing the work. Prior to such entry, the chief	1228
shall give to the following persons written notice of the	1229
existence of a contract for a project to restore,or plug, or	1230
inject oil or gas production wastes into a well, the names of the	1231
persons with whom the contract is made, and the date that the	1232
project will commence: the owner of the well, the owner of the	1233
land upon which the well is located,each person identified under	1234
division (C)(1)(a) of this section; if different from the persons	1235
identified under that division, the owner or agents of adjoining	1236
land,; and, if the well is located in the same township as or in	1237
a township adjacent to the excavations and workings of a mine and	1238
the owner or lessee of that mine has provided written notice	1239
identifying those townships to the chief at any time during the	1240
immediately preceding three years, the owner or lessee of the	1241
mine. In addition, the chief shall notify the director of	1242
environmental protection of those activities in order to obtain	1243
the director's evaluation of any impact to the environment from	1244
the activities and the director's determination of compliance with	1245
state environmental laws.	1246

(2)(a) The owner of the land on which a well is located who	1247
has received notice under division (C)(1)(b) of this section may	1248
plug the well and be reimbursed by the division for the reasonable	1249
cost of plugging the well. In order to plug the well, the	1250
landowner shall submit an application to the chief on a form	1251
prescribed by the chief and approved by the technical advisory	1252
council on oil and gas created in section 1509.38 of the Revised	1253
Code. The application, at a minimum, shall require the landowner	1254
to provide the same information as is required to be included in	1255
the application for a permit to plug and abandon under section	1256
1509.13 of the Revised Code. The application shall be accompanied	1257
by a copy of a proposed contract to plug the well prepared by a	1258
contractor regularly engaged in the business of plugging oil and	1259
gas wells. The proposed contract shall require the contractor to	1260
furnish all of the materials, equipment, work, and labor necessary	1261
to plug the well properly and shall specify the price for doing	1262
the work, including a credit for the equipment appurtenant to the	1263
well that was forfeited to the state through the operation of	1264
division (C)(2) of this section. Expenditures under division	1265
(D)(2)(a) of this section shall be consistent with the	1266
expenditures for activities described in division (D)(1) of this	1267
section. The application also shall be accompanied by the permit	1268
fee required by section 1509.13 of the Revised Code unless the	1269
chief, in the chief's discretion, waives payment of the permit	1270
fee. The application constitutes an application for a permit to	1271
plug and abandon the well for the purposes of section 1509.13 of	1272
the Revised Code.	1273

(b) Within thirty days after receiving an application and	1274
accompanying proposed contract under division (D)(2)(a) of this	1275
section, the chief shall determine whether the plugging would	1276
comply with the applicable requirements of this chapter and	1277
applicable rules adopted and orders issued under it and whether	1278
the cost of the plugging under the proposed contract is	1279
reasonable. If the chief determines that the proposed plugging	1280
would comply with those requirements and that the proposed cost of	1281
the plugging is reasonable, the chief shall notify the landowner	1282
of that determination and issue to the landowner a permit to plug	1283
and abandon the well under section 1509.13 of the Revised Code.	1284
Upon approval of the application and proposed contract, the chief	1285
shall transfer ownership of the equipment appurtenant to the well	1286
to the landowner. The chief may disapprove an application	1287
submitted under division (D)(2)(a) of this section if the chief	1288
determines that the proposed plugging would not comply with the	1289
applicable requirements of this chapter and applicable rules	1290
adopted and orders issued under it, that the cost of the plugging	1291
under the proposed contract is unreasonable, or that the proposed	1292
contract is not a bona fide, arms length contract.	1293

(c) After receiving the chief's notice of the approval of the	1294
application and permit to plug and abandon a well under division	1295
(D)(2)(b) of this section, the landowner shall enter into the	1296
proposed contract to plug the well. The plugging shall be	1297
completed within one hundred eightsixty days after the landowner	1298
receives the notice of approval and permit.	1299

(d) Upon determining that the plugging has been completed	1300
within the time required by division (D)(2)(c) of this section and	1301
has been completed in compliance with the applicable requirements	1302
of this chapter and applicable rules adopted and orders issued	1303
under it, the chief shall reimburse the landowner for the cost of	1304
the plugging as set forth in the proposed contract approved by the	1305
chief. The reimbursement shall be paid from the oil and gas well	1306
fund. If the chief determines that the plugging was not completed	1307
within the required time or was not completed in accordance with	1308
the applicable requirements, the chief shall not reimburse the	1309
landowner for the cost of the plugging, and the landowner or the	1310
contractor, as applicable, promptly shall transfer back to this	1311
state title to and possession of the equipment appurtenant to the	1312
well that previously was transferred to the landowner under	1313
division (D)(2)(b) of this section. If any such equipment was	1314
removed from the well during the plugging and sold, the landowner	1315
shall pay to the chief the proceeds from the sale of the	1316
equipment, and the chief promptly shall pay the moneys so received	1317
to the treasurer of state for deposit into the oil and gas well	1318
fund.	1319

The chief may establish an annual limit on the number of	1320
wells that may be plugged under division (D)(2) of this section or	1321
an annual limit on the expenditures to be made under that division	1322
(D)(2) of this section.	1323

As used in division (D)(2) of this section, "plug" and	1324
"plugging" include the plugging of the well and the restoration of	1325
the land surface disturbed by the plugging.	1326

(E) Expenditures from the oil and gas well fund for the	1327
purpose of division (B)(2) of this section may be made pursuant to	1328
contracts entered into by the chief with persons who agree to	1329
furnish all of the materials, equipment, work, and labor as	1330
specified and provided in such a contract. However, expenditures	1331
shall not be authorized to purchase real property or to remove a	1332
dwelling. The competitive bidding requirements of Chapter 153. of	1333
the Revised Code do not apply if the chief reasonably determines	1334
that correction of the applicable health or safety risk requires	1335
immediate action. The chief, designated representatives of the	1336
chief, and agents or employees of persons contracting with the	1337
chief under this division may enter upon any land, public or	1338
private, for the purpose of performing the work.	1339

(F) Contracts entered into by the chief under this section	1340
are not subject to either of the following:	1341

(1) Chapter 4115. of the Revised Code;

1342

(2) Section 153.54 of the Revised Code, except that the	1343
contractor shall obtain and provide to the chief as a bid guaranty	1344
a surety bond or letter of credit in an amount equal to ten per	1345
cent of the amount of the contract.	1346

(G) The owner of land on which a well is located who has	1347
received notice under division (C)(1)(b) of this section, in lieu	1348
of plugging the well in accordance with division (D)(2) of this	1349
section, may cause ownership of the well to be transferred to an	1350
ownera permittee who is lawfully doing business in this state and	1351
who has met the financial responsibility requirements established	1352
under section 1509.07 of the Revised Code, subject to the approval	1353
of the chief. The transfer of ownership also shall be subject to	1354
the landowner's filing the appropriate forms required under this	1355
chapter and providing to the chief sufficient information to	1356
demonstrate the landowner's or owner'spermittee's right to	1357
produce a formation or formations. That information may include a	1358
deed, a lease, or other documentation of ownership or property	1359
rights.	1360

The chief shall approve or disapprove the transfer of	1361
ownership of the well. If the chief approves the transfer, the	1362
ownerpermittee is responsible for operating the well in	1363
accordance with this chapter and rules adopted under it,	1364
including, without limitation, all of the following:	1365

(1) Filing an application with the chief under section	1366
1509.06 of the Revised Code if the ownerpermittee intends to	1367
drill deeper or produce a formation that is not listed in the	1368
records of the division for that well;	1369

(2) Taking title to and possession of the equipment	1370
appurtenant to the well that has been identified by the chief as	1371
having been abandoned by the former owner or permittee;	1372

(3) Complying with all applicable requirements that are	1373
necessary to drill deeper, plug the well, or plug back the well.	1374

(H) The chief shall issue an order that requires the	1375
responsible person of a well to pay the actual documented costs	1376
of a corrective action that is described in division (B)(2) of	1377
this section concerning the well. The chief shall transmit the	1378
money so recovered to the treasurer of state who shall deposit	1379
the money in the state treasury to the credit of the oil and gas	1380
fund.	1381

Sec. 1509.072.  No oil or gas well ownerpermittee or agent	1382
of an oil or gas well ownerpermittee shall fail to restore the	1383
land surface within the area disturbed in siting, drilling,	1384
completing, and producing, plugging, and abandoning the well as	1385
required in this section.	1386

(A) Within five monthsfourteen days after the date upon	1387
which the surface drilling of a well is commencedcompleted to	1388
total depth in an urbanized area and within one month after the	1389
date upon which the drilling of a well is completed in all other	1390
areas, the ownerpermittee or the owner'spermittee's agent, in	1391
accordance with the restoration plan filed under division	1392
(A)(10)(11) of section 1509.06 of the Revised Code, shall fill	1393
with clean fill all the pits for containing brine,and other	1394
waste substances resulting, obtained, or produced in connection	1395
with exploration or drilling for, or production of, oil or gas,	1396
or oil that are not required by other state or federal law or	1397
regulation, and remove all concrete bases, drilling supplies, and	1398
drilling equipment. Within nine monthsIn addition, the permittee	1399
or the permittee's agent shall remove all cuttings containing	1400
brine and all other waste substances and dispose of the cuttings	1401
and other waste substances in an appropriate facility licensed	1402
under Chapter 3734. of the Revised Code or dispose of such	1403
cuttings and waste substances in accordance with all applicable	1404
statutes and rules governing environmental protection. Unless the	1405
chief of the division of mineral resources management approves a	1406
longer time period, within one month after the date upon which	1407
the surface drilling of a well is commenced in an urbanized area	1408
and within two months after the date upon which the surface	1409
drilling of a well is commenced in all other areas, the owner	1410
permittee or the owner'spermittee's agent shall begin to grade or	1411
terrace and plant, seed, or sod the area disturbed that is not	1412
required in production of the well where necessary to bind the	1413
soil and prevent substantial erosion and sedimentation. If the	1414
chief of the division of mineral resources management finds that	1415
a pit used for containing brine, other waste substances, or oil	1416
is in violation of section 1509.22 of the Revised Code or rules	1417
adopted or orders issued under it, the chief may require the pit	1418
to be emptied and closed before expiration of the five-month	1419
applicable restoration period.	1420

(B) Within six monthsthirty days after a well that has	1421
produced oil or gas is plugged, or after the plugging of a dry	1422
hole, unless the chief approves a longer time period not to	1423
exceed six months, the ownerpermittee or the owner'spermittee's	1424
agent shall remove all production and storage structures,	1425
supplies, and equipment, and any oil, salt water, and debris, and	1426
fill any remaining excavations. Within that periodfourteen days	1427
after removal of such structures, supplies, equipment, oil, salt	1428
water, and debris and filling of such excavations, the owner	1429
permittee or the owner'spermittee's agent shall grade or terrace	1430
and plant, seed, or sod the area disturbed where necessary to	1431
bind the soil and prevent substantial erosion and sedimentation.	1432

The ownerpermittee shall not be released from responsibility	1433
to perform any or all restoration requirements of this section on	1434
any part or all of the area disturbed upon the filing of a	1435
request for a waiver with and obtaining the written approval of	1436
the chief, whichunless the request shall beis signed by the	1437
surface owner to certify that the approval of the surface owner of	1438
the release soughtwill undertake all of the responsibilities of	1439
the permittee to perform any or all of the restoration	1440
requirements established in this section. The chief shall approve	1441
the request unless the chief finds upon inspection that the	1442
waiver would be likely to result in substantial damage to	1443
adjoining property, substantial contamination of surface or	1444
underground water, or substantial erosion or sedimentationonly if	1445
the surface owner executes and files a surety bond with the	1446
division of mineral resources management in an amount equal to the	1447
estimated cost to plug the well and restore the site in accordance	1448
with the requirements established in this chapter and rules	1449
adopted under it.	1450

The chief, by order, may shorten the time periods provided	1451
for under division (A) or (B) of this section if failure to	1452
shorten the periods would be likely to result in damage to public	1453
health or the waters or natural resources of the state.	1454

The chief, upon written application by an ownera permittee	1455
or an owner'sa permittee's agent showing reasonable cause, may	1456
extend the period within which restoration shall be completed	1457
under divisions (A) and (B) of this section, but not to exceed a	1458
further six-month period, except under extraordinarily adverse	1459
weather conditions or when essential equipment, fuel, or labor is	1460
unavailable to the ownerpermittee or the owner'spermittee's	1461
agent.	1462

If the chief refuses to approve a request for waiver or	1463
extension, the chief shall do so by order.	1464

Sec. 1509.073.  (A) In addition to the requirements	1465
established in section 1509.04 of the Revised Code, the chief of	1466
the division of mineral resources management shall coordinate with	1467
local inspectors in the enforcement of this chapter and rules	1468
adopted under it. A local inspector may inspect an oil or gas well	1469
and the storage facilities of a well at any time in order to	1470
ensure compliance with local zoning or building codes. In	1471
addition, the chief of the fire department within whose	1472
jurisdiction an oil or gas well is located may inspect the well to	1473
ensure compliance with the fire code of the municipal corporation	1474
or township, as applicable.	1475

(B) If a local inspector or chief of an applicable fire	1476
department discovers a violation of a permit issued under this	1477
chapter, the inspector or chief shall notify the chief of the	1478
division of mineral resources management or a mineral resources	1479
inspector within twenty-four hours of the discovery.	1480

(C) A permittee annually shall pay to a municipal corporation	1481
or township, as applicable, a fee of five hundred dollars for each	1482
of the permittee's wells that is located within the territorial	1483
boundaries of the municipal corporation or township. The fee shall	1484
be deposited in a special fund that is established by the	1485
municipal corporation or township. The money in the fund shall be	1486
used by the municipal corporation or township to pay the costs of	1487
training police, fire, and medical personnel to respond to	1488
well-related emergencies in the municipal corporation or township,	1489
to pay the costs of periodic inspections by a local inspector to	1490
ensure proper maintenance of all well-related facilities, and to	1491
pay the costs of inspections by local inspectors of the site where	1492
the surface facilities of a well are located to ensure compliance	1493
with local zoning or building codes.	1494

Sec. 1509.074.  A person that is issued a permit to drill a	1495
well under this chapter shall do all of the following:	1496

(A) Prior to commencing drilling, meet with the chief of the	1497
fire department within whose jurisdiction the well is located to	1498
explain the drilling operation, including any potential problems	1499
or concerns and solutions to those problems or concerns, and to	1500
provide a schedule of the drilling;	1501

(B) Grant a right of entry to an authorized representative	1502
of the fire department within whose jurisdiction the well is	1503
located for the purpose of formulating emergency operating	1504
procedures;	1505

(C) Ensure the availability of a gas well technician who has	1506
knowledge of the mitigation of hazardous or emergency conditions	1507
at a well location. The permittee shall ensure that a gas well	1508
technician responds to a hazardous or emergency condition at the	1509
well within thirty minutes of the permittee's receipt of	1510
notification that a hazardous or emergency condition exists at	1511
the well location. In addition, the permittee shall provide to	1512
each technician the necessary tools and testing equipment that	1513
normally are required to determine the location and nature of a	1514
hazardous or emergency condition, to complete repairs, or to shut	1515
off a well if necessary.	1516

(D) Develop a monthly and an annual safety inspection	1517
checklist that shall be used for each monthly and annual	1518
inspection of each well head and tank battery;	1519

(E) Inspect monthly and annually each well head and tank	1520
battery using the applicable checklist that is developed under	1521
division (D) of this section and submit a copy of the checklist	1522
monthly or annually, as applicable, to the chief of the fire	1523
department within whose jurisdiction the well is located;	1524

(F) Provide to the chief of the fire department within whose	1525
jurisdiction the well is located all information concerning	1526
inspections, investigations, and repairs that are performed at	1527
the well location after the occurrence of a hazardous or	1528
emergency condition at the well.	1529

Sec. 1509.075. (A) A person that is issued a permit to drill	1530
a well under this chapter, prior to commencing drilling	1531
operations, shall execute and file with the legislative authority	1532
of a municipal corporation or the board of township trustees of a	1533
township, as applicable, a surety bond for each of the permittee's	1534
wells that is located within the territorial boundaries of the	1535
municipal corporation or township. The surety bond shall be	1536
conditioned on compliance with the terms and conditions of the	1537
permit and with all of the applicable laws and rules enacted or	1538
adopted by the municipal corporation or township and shall provide	1539
coverage for damage to municipal corporation or township roads	1540
caused by vehicles associated with the drilling of the well, the	1541
cleanup of mud and drilling refuse from public property, and the	1542
cost of water testing conducted within six months of the drilling	1543
of the well. The amount of the surety bond shall be established by	1544
the legislative authority of the municipal corporation or the	1545
board of township trustees of the township, as applicable, but	1546
shall not be less than one hundred per cent of the estimated cost	1547
of the screening and landscaping requirements established in this	1548
chapter and rules adopted under it.	1549

In lieu of a surety bond, the permittee may deposit with the	1550
legislative authority of the municipal corporation or the board of	1551
township trustees of the township cash in an amount equal to the	1552
surety bond established under this section or certificates of	1553
deposit having a cash value equal to or greater than that amount.	1554

(B) Upon completion of the installation of the well, the	1555
permittee shall notify the applicable local inspector. Not later	1556
than five days after receipt of the notification, the local	1557
inspector shall inspect the surface location of the well and	1558
determine if the installation of the well complies with the terms	1559
and conditions of the permit and with laws and rules of the	1560
applicable municipal corporation or township. If the inspector	1561
determines that the well complies with those terms and conditions	1562
and laws and rules, the inspector shall notify the permittee and	1563
the legislative authority of the municipal corporation or the	1564
board of township trustees of the township, as applicable, and the	1565
legislative authority or board shall release the surety bond or	1566
other financial security to the permittee.	1567

If the inspector determines that the well does not comply	1568
with the terms and conditions of the permit or with laws or rules	1569
of the applicable municipal corporation or township, the inspector	1570
shall notify the permittee and the applicable legislative	1571
authority or board and specifically describe the reasons for	1572
noncompliance. The permittee may take actions that are necessary	1573
to bring the installation of the well into compliance. Following	1574
the completion of those actions, the permittee shall notify the	1575
applicable local inspector who shall conduct a second inspection	1576
of the surface location of the well. If the inspector determines	1577
that the well complies with the terms and conditions of the permit	1578
and with laws and rules of the applicable municipal corporation or	1579
township, the inspector shall notify the permittee and the	1580
legislative authority of the municipal corporation or the board of	1581
township trustees of the township, as applicable, and the	1582
legislative authority or board shall release the surety bond or	1583
other financial security to the permittee.	1584

If the inspector again determines that the well does not	1585
comply with the terms and conditions of the permit or with laws or	1586
rules of the applicable municipal corporation or township, the	1587
inspector shall notify the permittee and the applicable	1588
legislative authority or board. The legislative authority or board	1589
shall not release the surety bond or other financial security to	1590
the permittee.	1591

Sec. 1509.076. On and after the effective date of this	1592
section, a person that is issued a permit to drill a well under	1593
this chapter shall do all of the following:	1594

(A) Post a sign prior to the commencement of the drilling of	1595
a well. The sign shall be permanent and weatherproof and	1596
maintained at all times. In addition, the sign shall consist of	1597
letters and numerals that are at least five inches in height and	1598
shall contain all of the following:	1599

(1) The number and name of the road that will be used to	1600
access the well site;	1601

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

1602

(3) The name, address, and telephone number of the permittee	1603
or a representative of the permittee who may be contacted and	1604
available in the event of an emergency.	1605

(B) Implement a monitoring system at a new or existing oil or	1606
gas well for the detection of a leak of natural gas, hydrogen	1607
sulfide, or radon, a spill of a toxic chemical, or an explosion.	1608
The monitoring system shall have an audible alarm to warn the	1609
workers at the surface location of the well and the public of such	1610
a leak, spill, or explosion. The monitoring system also shall	1611
notify the fire department within whose jurisdiction the well will	1612
be or is located of such a leak, spill, or explosion. In addition,	1613
the monitoring system and alarm shall be operable during power	1614
failures and during the drilling of and production from a well	1615
until the well is abandoned and plugged.	1616

(C) Conduct all operations in a manner that eliminates, as	1617
far as practical, dust, noise, vibrations, and noxious odors. In	1618
addition, a permittee shall not allow the noise from the drilling	1619
operation to exceed eighty decibels if the well is located within	1620
five hundred feet of an occupied dwelling, a multiple unit	1621
dwelling with at least three units, a hospital as defined in	1622
section 3727.01 of the Revised Code, or a home as defined in	1623
section 3721.01 of the Revised Code.	1624

(D) Use only fluid during the drilling of a well that is	1625
located in an area that is zoned residential or is otherwise a	1626
residential area in order to minimize flaring. In addition, if a	1627
permittee drills the well at night in an area that is zoned	1628
residential or is otherwise a residential area, the permittee	1629
shall use only the amount of light that is necessary for	1630
conducting a safe operation.	1631

(E) Operate a drilling rig between the hours of seven-thirty	1632
a.m. and seven p.m. unless all owners of property that is located	1633
within one thousand feet of the location of the well consent in	1634
writing to the drilling of the well during other hours;	1635

(F) Detonate explosives between the hours of seven-thirty	1636
a.m. and seven p.m. unless the chief of the fire department within	1637
whose jurisdiction the well is located authorizes the detonation	1638
of explosives during other hours;	1639

(G) Store all flammable and combustible liquids from a	1640
producing well in underground tanks;	1641

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

1642

(I) Keep the areas within fifteen feet of all permanent	1643
production facilities mowed and cleared of combustible materials.	1644
In addition, those areas shall be enclosed with fencing that is	1645
not less than six feet in height.	1646

(J) Paint shut-off valves in a conspicuous color for ease of	1647
identification in emergencies;	1648

(K) Install latches on well head and tank battery enclosures	1649
to hold the enclosures open;	1650

(L) Lock all gates, storage tank manholes, discharge valves,	1651
fill valves, shut-off valves, and fence gates. All locks at a well	1652
shall use a master key that is marked with the well number. In	1653
addition, a permittee shall provide a copy of the master key for	1654
each well to a local inspector, the chief of the fire department	1655
within whose jurisdiction the well is located, and the applicable	1656
chief of police or sheriff.	1657

(M) Bury all new oil and gas lines a minimum depth of thirty	1658
inches. In addition, a permittee shall indicate the location of	1659
those oil and gas lines on a map and provide a copy of the map to	1660
the local inspector and to the chief of the fire department within	1661
whose jurisdiction the lines are located.	1662

(N) Equip each permanent production structure, including, but	1663
not limited to, a separator unit and a storage tank, with properly	1664
grounded lightning rods;	1665

(O) Provide for a drilling-in control gate in the drilling of	1666
a well or in the cleaning of an abandoned well in preparation for	1667
the plugging of the abandoned well. The drilling-in control gate	1668
shall be constructed in a manner that will cut off the flow of gas	1669
to the top of the well and that will allow the gate to be operated	1670
at a remote location from the well.	1671

(P) Vent a plugged well with a vent pipe that is not less	1672
than two inches in diameter and of a height that is determined by	1673
the chief of the division of mineral resources management in	1674
consultation with the applicable fire chief and local inspector.	1675
In addition, the vent pipe shall have a drilled and tapped	1676
inspection hold with a hole plug that is not less than one-half	1677
inch in diameter and that is not more than four feet above grade.	1678

(Q) Locate a new well head, tank battery, and storage tank in	1679
accordance with all of the following:	1680

(1) At least one thousand feet from a single or multiple	1681
family dwelling, hospital as defined in section 3727.01 of the	1682
Revised Code, clinic, home as defined in section 3721.01 of the	1683
Revised Code, school, day-care, playground, auditorium, theater,	1684
library, shopping center, place of worship, or any other building	1685
used as a place for public assembly;	1686

(2) At least two thousand feet from a lake, stream, river,	1687
or other large body of water;	1688

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

1689

(R) Paint a storage tank and other equipment that is located	1690
above ground shades of dark green in order to minimize the visual	1691
obtrusiveness of the equipment. In addition, a permittee shall	1692
identify the contents of a storage tank using eight-inch letters	1693
on the outside of the tank in a color that is distinct from the	1694
tank color.	1695

(S) Use a storage tank if a well is located on a steep slope	1696
or within a floodplain;	1697

(T) Anchor a storage tank in a permanent manner in order to	1698
prevent movement of the tank;	1699

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

1700

(V) Use only an electrically powered pump jack;

1701

(W) Permanently mark all sales lines from a tank battery at	1702
intervals of not more than two hundred feet;	1703

(X) Install a brine tank not higher than eight feet above	1704
grade. A permittee may recess a brine tank below grade in order to	1705
comply with this division.	1706

(Y) Maintain all equipment that is or is to be used at a well	1707
and all equipment at the surface location of a well in good	1708
operating condition according to best management practices that	1709
are recognized by the oil and gas industry;	1710

(Z) Provide access roads to the surface location of a well in	1711
order for emergency responders to be able to access the location	1712
in an emergency. The roads used for ingress and egress to the	1713
surface location of a well shall be made of concrete or asphalt	1714
and shall be of sufficient width to enable emergency vehicles to	1715
turn around. In addition, a permittee shall maintain the roads at	1716
all times, including keeping the roads free of snow. If an access	1717
road crosses a drainage channel, a permittee shall install	1718
culverts, which shall be of a size that is appropriate for the	1719
drainage area and shall be approved by the municipal engineer or	1720
county engineer, as applicable, prior to the installation of the	1721
culverts.	1722

(AA) Locate a truck loading area or parking area in a	1723
location that is not on an access road to the surface location of	1724
a well and that is not on a public right-of-way;	1725

(BB) Remove immediately from a municipal or township road all	1726
debris resulting from the drilling of or production from a well.	1727

Sec. 1509.08.  Upon receipt of an application for a permit	1728
required by section 1509.05 of the Revised Code, or upon receipt	1729
of an application for a permit to plug and abandon under section	1730
1509.13 of the Revised Code, the chief of the division of mineral	1731
resources management shall determine whether the well is or is to	1732
be located in a coal bearing township.	1733

Whether or not the well is or is to be located in a coal	1734
bearing township, the chief, by order, may refuse to issue a	1735
permit required by section 1509.05 of the Revised Code to any	1736
applicant who at the time of applying for the permit is in	1737
material orand substantial violation of this chapter or rules	1738
adopted or orders issued under it. The chief shall refuse to issue	1739
a permit to any applicant who at the time of applying for the	1740
permit has been found liable by a final nonappealable order of a	1741
court of competent jurisdiction for damage to streets, roads,	1742
highways, bridges, culverts, or drainways pursuant to section	1743
4513.34 or 5577.12 of the Revised Code until the applicant	1744
provides the chief with evidence of compliance with the order. No	1745
applicant shall attempt to circumvent this provision by applying	1746
for a permit under a different name or business organization name,	1747
by transferring responsibility to another person or entity, by	1748
abandoning the well or lease, or by any other similar act.	1749

If the well is not or is not to be located in a coal bearing	1750
township, or if it is to be located in a coal bearing township,	1751
but the landowner submits an affidavit attesting to ownership of	1752
the property in fee simple, including the coal, and has no	1753
objection to the well, the chief shallmay issue the permit in	1754
accordance with this chapter and rules adopted under it.	1755

If the application to drill, reopen, or convert concerns a	1756
well that is or is to be located in a coal bearing township, the	1757
chief immediately shall notify the owner or lessee of any affected	1758
mine that the application has been filed and send to the owner or	1759
lessee two copies of the map accompanying the application setting	1760
forth the location of the well. The chief also immediately shall	1761
send notice and a copy of the application to all of the following:	1762
the clerk of the legislative authority of the municipal	1763
corporation or the clerk of the board of the township trustees of	1764
the township, as applicable, in which the well is or is to be	1765
located; the fire chief of the fire department within whose	1766
jurisdiction the well is or is to be located; and the director of	1767
environmental protection. The notice sent to the applicable fire	1768
chief shall request that the fire chief determine if there would	1769
be adverse effects from the well or proposed well to the health	1770
and safety of persons residing in the municipal corporation or	1771
township, as applicable. The notice sent to the director shall	1772
request that the director determine if the well or proposed well	1773
would violate applicable air, soil, or water pollution control	1774
standards.	1775

If the owner or lessee of the mine, the applicable fire	1776
chief, or the director objects to the location of the well or	1777
objects to any location within fifty feet of the original location	1778
as a possible site for relocation of the well, the owner or	1779
lessee, the applicable fire chief, or the director, not later than	1780
twenty-two days after receipt of the notice of the filing of the	1781
application, shall notify the chief of the objection, giving the	1782
reasons for the objection and, if applicable, indicating on a copy	1783
of the map the particular location or locations within fifty feet	1784
of the original location to which the owner or lessee objects as a	1785
site for possible relocation of the well, within six days after	1786
the receipt of the notice. If	1787

If either the applicable fire chief or the director objects	1788
to the application, the chief shall not approve the application	1789
until the fire chief sends a letter to the chief that withdraws	1790
the fire chief's objections or the director issues an opinion that	1791
recommends that the application be approved. The objection to the	1792
application by the applicable fire chief or the director shall	1793
stay the application pending the withdrawal of the objection.	1794

If the chief receives no objections from the owner or lessee	1795
of the mine within ten days after the receipt of the notice by the	1796
owner or lessee, or if in the opinion of the chief the objections	1797
offered by the owner or lessee are not sufficiently well founded,	1798
the applicable fire chief, or the director, the chief immediately	1799
shall notify the owner or lessee of those findingsmay approve the	1800
application and issue the permit in accordance with this chapter	1801
and rules adopted under it. TheIf the chief denies the	1802
application, the owner or lessee of the mine may appeal the	1803
decision of the chief to the reclamation commission under section	1804
1513.13 of the Revised Code. The appeal shall be filed within	1805
fifteen days, notwithstanding provisions in divisions (A)(1) of	1806
section 1513.13 of the Revised Code, to the contrary, from the	1807
date on which the owner or lessee receives the notice. If the	1808
appeal is not filed within that time, the chief immediately shall	1809
approve the application and issue the permit if the provisions of	1810
this chapter pertaining to the issuance of such a permit have been	1811
complied with.	1812

If the chief receives an objection from the owner or lessee	1813
of the mine as to the location of the well within ten days after	1814
receipt of the notice by the owner or lessee, and if in the	1815
opinion of the chief the objection is well founded, the chief	1816
shall disapprove the application and request the owner or lessee	1817
to suggest a new proposed location for the well, provided that the	1818
suggested new location shall not be a location within fifty feet	1819
of the original location to which the owner or lessee has objected	1820
as a site for possible relocation of the well if the chief has	1821
determined that the objection is well founded. The chief	1822
immediately shall notify the applicant for the permit of the	1823
disapproval and any suggestion as to a new proposed location for	1824
the well. The applicant may withdraw the application or amend the	1825
application to drill the well at the location suggested by the	1826
chief, or the applicant may appeal the disapproval of the	1827
application by the chief to the reclamation commission.	1828

If the chief receives no objection from the owner or lessee	1829
of a mine as to the location of the wellapplicable fire chief or	1830
the director or an objection from the applicable fire chief or the	1831
director is withdrawn, but does receivethe chief receives an	1832
objection from the owner or lessee of an affected mine as to one	1833
or more locations within fifty feet of the original location as	1834
possible sites for relocation of the well within ten days after	1835
receipt of the notice by the owner or lessee, and if in the	1836
opinion of the chief the objection is well foundedthe location of	1837
the well, the chief nevertheless shall not approve the application	1838
and issue a permit if the provisions of this chapter pertaining to	1839
the issuance of such a permit have been complied with,	1840
incorporating as a term or condition of the permit that the	1841
applicant is prohibited from commencing drilling at any location	1842
within fifty feet of the original location that has been	1843
disapproved by the chief. The applicant may appeal to the	1844
reclamation commission the terms and conditions of the permit	1845
prohibiting the commencement of drilling at any such location	1846
disapproved by the chiefunless the owner or lessee of the	1847
affected mine withdraws the objection. The chief immediately shall	1848
notify the applicant of the objection. Not later than sixty days	1849
after receipt of the notification, the applicant shall amend or	1850
withdraw the application. The chief shall not approve an	1851
application or amended application unless the objection is	1852
withdrawn.	1853

Any such appeal shall be filed within fifteen days,	1854
notwithstanding provisions in division (A)(1) of section 1513.13	1855
of the Revised Code to the contrary, from the date the applicant	1856
receives notice of the disapproval of the application, any other	1857
location within fifty feet of the original location, or terms or	1858
conditions of the permit, or the owner or lessee receives notice	1859
of the chief's decision. No approval or disapproval of an	1860
application shall be delayed by the chief for more than fifteen	1861
days from the date of sending the notice of the application to the	1862
mine owner or lessee as required by this section.	1863

All appeals provided for in this section shall be treated as	1864
expedited appeals. The reclamation commission shall hear any such	1865
appeal in accordance with section 1513.13 of the Revised Code and	1866
issue a decision within thirty days of the filing of the notice of	1867
appeal.	1868

The chief shall not issue a permit to drill a new well or	1869
reopen a well that is or is to be located within three hundredone	1870
thousand feet of any opening of any mine used as a means of	1871
ingress, egress, or ventilation for persons employed in the mine,	1872
nor within one hundredthousand feet of any building or	1873
inflammable structure connected with the mine and actually used as	1874
a part of the operating equipment of the mine, unless the chief	1875
determines that life or property will not be endangered by	1876
drilling and operating the well in that location.	1877

Sec. 1509.081.  (A) If a proposed well will be drilled within	1878
a one-mile radius of an existing well that was drilled into or	1879
through the same geologic formation in which the proposed well	1880
will be drilled and if hydrogen sulfide was found in the drilling	1881
of the existing well, the permittee shall install monitoring	1882
equipment in accordance with the American petroleum institute	1883
publication API RP49, "Recommended Practices for Safe Drilling of	1884
Wells Containing Hydrogen Sulfide," to detect the presence of	1885
hydrogen sulfide during the drilling of the proposed well.	1886

(B) If during the drilling of a well a permittee discovers,	1887
detects, or encounters hydrogen sulfide with a concentration of	1888
twenty parts per million or greater, the permittee shall do all of	1889
the following:	1890

(1) Drill the well in accordance with the American petroleum	1891
institute publication API RP49, "Recommended Practices for Safe	1892
Drilling of Wells Containing Hydrogen Sulfide";	1893

(2) Notify the division of mineral resources management of	1894
the location of the well and the concentration of hydrogen	1895
sulfide;	1896

(3) Operate the well in a manner that presents no danger to	1897
the health and safety of the public and the environment.	1898

(C) The division shall maintain a database that contains the	1899
information required in division (B)(2) of this section. The	1900
division shall make the database available to all permittees.	1901

Sec. 1509.09.  A well may be drilled under a permit only at	1902
the location designated on the map required in section 1509.06 of	1903
the Revised Code. TheExcept as provided in this section, the	1904
location of a well mayshall not be changed after the issuance of	1905
a permit only with the approval of the chief of the division of	1906
mineral resources management unless the permit holder requests the	1907
issuance of an emergency drilling permit under this section due to	1908
a lost hole under such circumstances that completion of the well	1909
is not feasible at the original location. If a permit holder	1910
permittee requests a change of location, the permit holder	1911
permittee shall return the original permit and file an amended	1912
application with a new map indicating the proposed new location.	1913

Drilling shall not be commenced at a new location until the	1914
original permit bearing a notation of approval by the chief is	1915
posted at the well site. However, a permit holder may commence	1916
drilling at a new location without first receiving the prior	1917
approval required by this section, if all of the following	1918
conditions are met:	1919

(A) Within one working day after spudding the new well, the	1920
permit holder files a request for an emergency drilling permit and	1921
submits to the chief an application for a permit that meets the	1922
requirements of section 1509.06 of the Revised Code, including the	1923
permit fee required by that section, with an amended map showing	1924
the new location;	1925

(B) A mineral resources inspector is present before spudding	1926
operations are commenced at the location;	1927

(C) The original well is plugged prior to the skidding of the	1928
drilling rig to the new location, and the plugging is witnessed or	1929
verified by a mineral resources inspector or, if the well is	1930
located in a coal bearing township, both a deputy mine inspector	1931
and a mineral resources inspector unless the chief or the chief's	1932
authorized representative temporarily waives the requirement, but	1933
in any event the original well shall be plugged before the	1934
drilling rig is moved from the location;	1935

(D) The new location is within fifty feet of the original	1936
location unless, upon request of the permit holder, the chief	1937
agrees to a new location farther than fifty feet from the original	1938
location;	1939

(E) The new location meets all the distance and spacing	1940
requirements prescribed by rules adopted under sections 1509.23	1941
and 1509.24 of the Revised Code;	1942

(F) If the well is located in a coal bearing township, use of	1943
the new well location has not been disapproved by the chief and	1944
has not been prohibited as a term or condition of the permit under	1945
section 1509.08 of the Revised Code.	1946

If the chief approves the change of location, the chief shall	1947
issue an emergency permit within two working days after the filing	1948
of the request for the emergency permit. If the chief disapproves	1949
the change of location, the chief shall, by order, deny the	1950
request and may issue an appropriate enforcement order under	1951
section 1509.03 of the Revised Code.	1952

Sec. 1509.10. (A) Any personpermittee drilling within the	1953
state shall, within thirtysixty days after the completion of the	1954
welldrilling operations to the proposed total depth or after a	1955
determination that a well is a dry or lost hole, file with the	1956
division of mineral resources management all wireline electric	1957
logs and an accurate log designatingwell completion record on a	1958
form that is approved by the chief of the division of mineral	1959
resources management that designates:	1960

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

1961

(B)(2) The character, depth, and thickness of geological	1962
formationsunits encountered, including fresh water, coal seams,	1963
mineral beds, associated fluids such as fresh water, brine, and	1964
crude oil and, natural gas bearing formations, and sour gas, if	1965
such seams, beds, or fluids are known;	1966

(C)(3) The dates on which drilling operations were commenced	1967
and completed;	1968

(4) The types of drilling tools used and the name of the	1969
person that drilled the well;	1970

(5) The length in feet of the various sizes of casing and	1971
tubing used in drilling the well, the amount removed after	1972
completion, the type and setting depth of each packer, and all	1973
other data relating to muddingcementing in the annular space	1974
behind such casing or tubing, and data indicating completion as a	1975
dry, gas, oil, combination oil and gas, brine injection, or	1976
artificial brine well or a stratigraphic test;	1977

(D)(6) The number of perforations in the casing and the	1978
intervals of the perforations;	1979

(7) The elevation above mean sea level of the point from	1980
which the depth measurements were made, stating also the height of	1981
the point above ground level at the well, the total depth of the	1982
well, and the deepest geological unit that was penetrated in the	1983
drilling of the well;	1984

(8) If applicable, the type, volume, and concentration of	1985
acid, and the date on which acid was used in acidizing the well;	1986

(9) If applicable, the type and volume of fluid used to	1987
stimulate the reservoir of the well, the reservoir breakdown	1988
pressure, the method used for the containment of fluids recovered	1989
from the fracturing of the well, the methods used for the	1990
containment of fluids when pulled from the wellbore from swabbing	1991
the well, the average pumping rate of the well, and the name of	1992
the person that performed the well stimulation. In addition, the	1993
permittee shall include a copy of the log from the stimulation of	1994
the well, a copy of the invoice for each of the procedures and	1995
methods described in division (A)(9) of this section that were	1996
used on a well, and a copy of the pumping pressure and rate	1997
graphs. However, the permittee may redact from the copy of each	1998
invoice that is required to be included by division (A)(9) of	1999
this section the costs of and charges for the procedures and	2000
methods described in division (A)(9) of this section that were	2001
used on a well.	2002

(10) The name of the company that performed the logging of	2003
the well and the types of wireline electric logs performed on the	2004
well.	2005

The logwell completion record shall be submitted in	2006
duplicate. The first copy shall be retained as a permanent record	2007
in the files of the division, and the second copy shall be	2008
transmitted by the chief of the division of mineral resources	2009
management to the division of geological survey.	2010

Any(B)(1) Not later than sixty days after the completion of	2011
the drilling operations to the proposed total depth, the	2012
permittee shall file all wireline electric log, or radioactivity	2013
log, or other geophysical log, if made in connection with the	2014
well shall be filedlogs with the division of mineral resources	2015
management and the chief shall transmit such logs	2016
electronically, if available, to the division of geological	2017
survey. Such logs may be retained by the ownerpermittee for a	2018
period of not more than six months, or such additional time as	2019
may be granted by the chief in writing, after the completion of	2020
the well substantially to the depth shown in the application	2021
required by section 1509.06 of the Revised Code.	2022

(2) If a well is not completed within sixty days after the	2023
completion of drilling operations, the permittee shall file with	2024
the division a supplemental well completion record that includes	2025
all of the information required by this section within sixty days	2026
after the completion of the well.	2027

(C) Upon request in writing by the chief of the division of	2028
geological survey prior to the beginning of drilling of the well,	2029
the person drilling the well shall make available a complete set	2030
of cuttings accurately identified as to depth.	2031

(D) The form of the logwell completion record required by	2032
this section shall be one that has been approved by the chief of	2033
the division of mineral resources management and the chief of the	2034
division of geological survey. The filing of a log as required by	2035
this section fulfills the requirement of filing a log with the	2036
chief of the division of geological survey in section 1505.04 of	2037
the Revised Code.	2038

Sec. 1509.11.  The ownerpermittee of any well producing or	2039
capable of producing oil or gas shall file with the chief of the	2040
division of mineral resources management, on or before the first	2041
day of March, a statement of production of oil, gas, and brine for	2042
the last preceding calendar year in such form as the chief may	2043
prescribe. A permittee that has more than one hundred wells in	2044
this state shall submit electronically the statement of production	2045
in a format that is approved by the chief. The chief shall include	2046
on the form, at the minimum, a request for the submittal of the	2047
information that a person who is regulated under this chapter is	2048
required to submit under the "Emergency Planning and Community	2049
Right-To-Know Act of 1986," 100 Stat. 1728, 42 U.S.C.A. 11001, and	2050
regulations adopted under it, and that the division does not	2051
obtain through other reporting mechanisms.	2052

Sec. 1509.12.  No ownerpermittee of any well knowingly shall	2053
construct a well, or permit defective casing or tubing in sucha	2054
well to leak fluids or gasgases, that may cause damage to other	2055
permeable strata, underground sources of drinking water, or the	2056
surface of the land or that threatens the public health and	2057
safety. Upon notice fromthe discovery that the casing or tubing	2058
in a well is defective or that a well was not adequately	2059
constructed, the permittee shall notify the chief of the division	2060
of mineral resources management within twenty-four hours of the	2061
discovery, such ownerand the permittee shall immediately repair	2062
suchthe tubing or casing, correct the construction	2063
inadequacies, or plug and abandon suchthe well.	2064

Unless written permissiontemporary inactive well status is	2065
obtained under section 1509.062 of the Revised Code or another	2066
option is granted by the chief, any well that is or becomes	2067
incapable of producing oil or gas in commercial quantities shall	2068
be plugged, but no well shall be required to be plugged under	2069
this section that is being used to produce oil or gas for	2070
domestic purposes, or that is being lawfully used for a purpose	2071
other than production of oil or gas. When the chief finds that a	2072
well should be plugged, the chief shall notify the owner to that	2073
effect by order in writing and shall specify in suchthe order a	2074
reasonable time within which to comply. No owner shall fail or	2075
refuse to plug a well within the time specified in the order.	2076
Each day on which such a well remains unplugged thereafter	2077
constitutes a separate offense.	2078

Where the plugging method prescribed by rules adopted	2079
pursuant to section 1509.15 of the Revised Code cannot be applied	2080
or if applied would be ineffective in carrying out the protection	2081
that the law is meant to give, the chief, by order, may designate	2082
a different method of plugging. The abandonment report shall show	2083
the manner in which the well was plugged.	2084

In case of oil or gas wells abandoned prior to September 1,	2085
1951, the board of county commissioners of the county in which	2086
suchthe wells are located may submit to the electors of the	2087
county the question of establishing a special fund, by special	2088
general levy, by general bond issue, or out of current funds,	2089
which shall be approved by a majority of the electors voting upon	2090
suchthat question for the purpose of plugging suchthe wells. The	2091
fund shall be administered by the board and the plugging of oil	2092
and gas wells shall be under the supervision of the chief, and	2093
the board shall let contracts for suchthat purpose, provided	2094
that suchthe fund shall not be used for the purpose of plugging	2095
oil and gas wells that were abandoned subsequent to September 1,	2096
1951.	2097

Sec. 1509.13. (A) No person shall plug and abandon a well	2098
without having a permit to do so issued by the chief of the	2099
division of mineral resources management. The permit shall be	2100
issued by the chief in accordance with this chapter, and the chief	2101
may establish by ruleshall be valid for a period of time	2102
twenty-four months from the date of issue during which permits	2103
will be valid. Application by the ownerpermittee for a permit to	2104
plug and abandon shall be filed as many days in advance as will	2105
be necessary for a mineral resources inspector or, if the well is	2106
located in a coal bearing township, both a deputy mine inspector	2107
and a mineral resources inspector to be present at the plugging.	2108
The application shall be filed with the chief upon a form that the	2109
chief prescribes and shall contain the following information:	2110

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

2111

(B)(2) The signature of the ownerpermittee or the owner's	2112
permittee's authorized agent. When an authorized agent signs an	2113
application, it shall be accompanied by a certified copy of the	2114
appointment as that agent.	2115

(C)(3) The location of the well identified by section or lot	2116
number, city, village, township, and county;	2117

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

2118

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

2119

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

2120

(G)(7) A plan for plugging the well that complies with the	2121
rules adopted under section 1509.15 of the Revised Code;	2122

(8) Other data that the chief may require.

2123

If oil or gas has been produced from the well, the	2124
application shall be accompanied by a fee of two hundred fifty	2125
dollars. If a new dry well has been drilled in accordance with law	2126
and the permit is still valid, the permit holderpermittee may	2127
receive approval to plug the well from a mineral resources	2128
inspector or, if the well is located in a coal bearing township,	2129
both a deputy mine inspector and a mineral resources inspector so	2130
that the well can be plugged and abandoned without undue delay.	2131
Unless waived by a mineral resources inspector, the permittee or	2132
the permittee's authorized representative shall notify a mineral	2133
resources inspector at least twenty-four hours prior to the	2134
commencement of the plugging of a well. No well shall be plugged	2135
and abandoned without a mineral resources inspector present unless	2136
permission has been granted by the chief. The ownerpermittee of	2137
thea well shall give written notice at the same time to the	2138
owner of the land upon which the well is located, the owners or	2139
agents of adjoining land, adjoining well ownerspermittees or	2140
agents, and, ifall lessors that receive gas from the well	2141
pursuant to a lease agreement. If the well penetrates or passes	2142
within one hundred feet of the excavations and workings of a	2143
mine, the ownerpermittee of the well shall give written notice	2144
to the owner or lessee of that mine, of the well owner's	2145
permittee's intention to abandon the well and of the time when	2146
the well ownerpermittee will be prepared to commence plugging	2147
it.	2148

(B) An applicant may file a request with the chief for	2149
expedited review of an application for a permit to plug and	2150
abandon a well. The chief may refuse to accept a request for	2151
expedited review if, in the chief's judgment, acceptance of the	2152
request will prevent the issuance, within twenty-one days of	2153
filing, of permits for which applications filed under section	2154
1509.06 of the Revised Code are pending. In addition to a complete	2155
application for a permit that meets the requirements of this	2156
section and the permit fee prescribed by this section, if	2157
applicable, a request shall be accompanied by a nonrefundable	2158
filing fee of two hundred fifty dollars unless the chief has	2159
ordered the applicant to plug and abandon the well. When a	2160
request for expedited review is filed, the chief shall immediately	2161
begin to process the application and shall issue a permit within	2162
seven days of the filing of the request unless the chief, by	2163
order, denies the application.	2164

(C) Upon the completion of the proper plugging of a well, the	2165
mineral resources inspector that was present for the plugging	2166
shall notify the chief that the well was plugged in accordance	2167
with the requirements established in this chapter and rules	2168
adopted under it. Upon receipt of the notification, the chief	2169
shall issue an order that releases the permittee or surety from	2170
the obligations under the bond that is required by section 1509.07	2171
of the Revised Code.	2172

(D) This section does not apply to a well plugged or	2173
abandoned in compliance with section 1571.05 of the Revised Code.	2174

Sec. 1509.14. Any(A) No person who abandonsshall abandon a	2175
well, whenwithout plugging it in accordance with this chapter and	2176
rules adopted under it. Each day that a well is abandoned and not	2177
plugged is a separate offense.	2178

(B) When written permission has been granted by the chief of	2179
the division of mineral resources management to abandon and plug	2180
thea well without an inspector being present to supervise the	2181
plugging, the permittee or the permittee's agent shall make a	2182
written report of the abandonment to the chief. The report shall	2183
be submitted not later than thirty days after the date of	2184
abandonment and shall include all of the following:	2185

(A)(1) The date of abandonment;

2186

(B)(2) The name of the owner or operatorpermittee of the	2187
well at the time of abandonment and the post-office address of the	2188
owner or operatorpermittee;	2189

(C)(3) The location of the well as to township and county and	2190
the name of the owner of the surface upon which the well is	2191
drilled, with the address thereof;	2192

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

2193

(E)(5) The date when drilled;

2194

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

2195

(G)(7) The depth of the top of the formation to which the	2196
well was drilled;	2197

(H)(8) The depth of each seam of coal drilled through, if	2198
known;	2199

(I)(9) A detailed report as to how the well was plugged,	2200
giving in particular the manner in which the coal and various	2201
formations were plugged, and the date of the plugging of the well,	2202
including the names of those who witnessed the plugging of the	2203
well.	2204

The report shall be signed by the owner or operator	2205
permittee, or the agent of the owner or operatorpermittee, who	2206
abandons and plugs the well and verified by the oath of the party	2207
so signing. For the purposes of this section, the mineral	2208
resources inspectors may take acknowledgments and administer oaths	2209
to the parties signing the report.	2210

Sec. 1509.15.  When any well is to be abandoned, it shall	2211
first be plugged in accordance with a method of plugging adopted	2212
by rule by the chief of the division of mineral resources	2213
management. The rule shall require the use of best management	2214
practices and standards that are recognized by the oil and gas	2215
industry to attain a durable seal on a plugged well that will	2216
protect the health and safety of the public and that will prevent	2217
damage to the environment. The abandonment report shall show the	2218
manner in which the well was plugged.	2219

Sec. 1509.17. Any person who drills a well shall, before	2220
drilling into the principal or major producing formation therein,	2221
encase such well with good and sufficient wrought iron or steel	2222
casing so as to exclude all surface, fresh, or salt water from any	2223
part of such well penetrating the oil or gas bearing sand or rock	2224
or fresh water strata. The method of placing such casing shall be	2225
approved by the chief of the division of mineral resources	2226
management and shall be in accord with the most approved method	2227
used in the operation of such type of well. The chief may, in lieu	2228
of the casing method outlined in this section, accept adequate	2229
mudding methods with prepared clay in the annular space behind	2230
such casing in sufficient quantities to shut off all gas or oil	2231
and that will exclude all surface, fresh, or salt water from any	2232
part of such well penetrating the oil, gas, or mineral bearing	2233
formation, or fresh water strata.	2234

Written approval from the chief is required in each case. In	2235
the operation of a gas well, it is permissible, with the written	2236
consent of the chief, to withdraw all casing in such well, leaving	2237
only the tubing and the packer therein, provided that such well is	2238
filled with prepared clay from the top of such packer to the	2239
surface, as each succeeding string of casing in such well is	2240
withdrawn.	2241

(A) A well shall be constructed in a manner that is approved	2242
by the chief of the division of mineral resources management using	2243
materials that comply with standards that are recognized by the	2244
oil and gas industry for the type and depth of the well and the	2245
anticipated fluid pressures that are associated with the well. In	2246
addition, a well shall be constructed using sufficient steel or	2247
conductor casing in a manner that supports unconsolidated	2248
sediments, that protects and isolates all underground sources of	2249
drinking water as defined by the Safe Drinking Water Act, and	2250
that provides a base for a blowout preventer or other well	2251
control equipment that is necessary to control formation	2252
pressures and fluids during the drilling of the well and other	2253
operations to complete the well. Using steel production casing	2254
with sufficient cement, an oil and gas reservoir shall be	2255
isolated during well stimulation and during the productive life	2256
of the well. In addition, sour gas zones and gas bearing zones	2257
that have sufficient pressure and volume to over-pressurize the	2258
surface production casing annulus shall be isolated using	2259
approved cementing, casing, and well construction practices.	2260
However, isolating an oil and gas reservoir shall not exclude	2261
open-hole completion. A well shall not be perforated for purposes	2262
of well stimulation in any zone that is located around casing	2263
that protects underground sources of drinking water without	2264
written authorization from the chief. When the well penetrates	2265
the excavations of a mine, the casing shall remain intact as	2266
provided in section 1509.18 of the Revised Code and be plugged	2267
and abandoned in accordance with section 1509.15 of the Revised	2268
Code.	2269

(B) The chief may adopt rules in accordance with Chapter 119.	2270
of the Revised Code that are consistent with division (A) of this	2271
section and that establish standards for constructing a well, for	2272
evaluating the quality of well construction materials, and for	2273
completing remedial cementing. In addition, the standards	2274
established in the rules shall consider local geology and various	2275
drilling conditions and shall require the use of reasonable	2276
methods that are based on sound engineering principles.	2277

(C) A permittee or a permittee's authorized representative	2278
shall notify a mineral resources inspector each time that the	2279
permittee or the authorized representative notifies a person to	2280
perform the cementing of the conductor casing, the surface	2281
casing, or the production casing. In addition, not later than	2282
sixty days after the completion of the cementing of the	2283
production casing, a permittee shall submit to the chief a copy of	2284
the cement tickets for each cemented string of casing and a copy	2285
of all logs that were used to evaluate the quality of the	2286
cementing.	2287

(D) The chief shall grant an exemption from this section and	2288
rules adopted under it for a well that was constructed prior to	2289
the effective date of this amendment if the chief determines that	2290
a cement bond log confirms zonal isolation and there is a minimum	2291
of five hundred feet between the uppermost perforation of the	2292
casing and the lowest depth of an underground source of drinking	2293
water.	2294

Sec. 1509.18. Any personA permittee who drills a well	2295
within the limits of a mining operation shall give consideration	2296
for the safety of the personnel working in suchthe mine, and, if	2297
possible, shall locate suchthe well so as to penetrate a	2298
pillar.	2299

If a well is to be drilled within the limits of a mining	2300
operation that may penetrate the excavation of a mine, the hole	2301
shall be reduced approximately fifteen feet above the roof of the	2302
mine. If roof conditions at the mine warrant, the hole shall be	2303
reduced in the rock formation immediately above suchthe mine, and	2304
a string of casing placed upon the shoulder so as to shut off all	2305
water, then drilling shall be continued to a point approximately	2306
thirty feet below the floor of the mine and another string of	2307
casing set. Both strings of casing shall be approximately the same	2308
diameter as the diameter of the hole.	2309

If no water is encountered between the bottom of the drive	2310
pipe and the approximate casing shoulder above the roof of such	2311
the mine, in lieu of the casing method outlined above, it is	2312
permissible to use the following casing method: the hole shall be	2313
drilled thirty feet below the floor of the mine and a string of	2314
casing shall be extended from the surface to a point thirty feet	2315
below the floor of the mine with a packer of sufficient size	2316
attached to suchthe string of casing. SuchThe packer shall be	2317
placed so that it will be below all water and will be located in	2318
the rock formation immediately above suchthe mine and shall	2319
prevent water or destructive matter from entering therein. Then	2320
the annular space above suchthe packer between the casing and	2321
well wall shall be filled with prepared clay a minimum distance	2322
of fifty feet.	2323

If a well is drilled within the limits of a mining operation	2324
and does not penetrate the excavations of a mine, the hole shall	2325
be reduced thirty feet below the coal or mineral that is being	2326
mined and a string of casing placed at this point. The annular	2327
space behind suchthe casing shall be filled with neat cement from	2328
the casing seat to a point not less than fifty feet above such	2329
the seam of coal or mineral that is being mined. The packer	2330
method, outlined in this section, is also permissible in this	2331
type of well.	2332

It is permissible to attach a release coupling or a right and	2333
left nipple to the string of casing that extends through the mine,	2334
but suchthe release coupling or right and left nipple shall be	2335
placed in such a manner that it is above the packer or at least	2336
twenty feet above the coal or mineral that is being mined.	2337

In wells penetrating the excavation of a mine, the casing	2338
shall be enclosed, if possible, with a column extending from the	2339
floor to the roof of suchthe mine, built of brick or other	2340
suitable material, subject to the approval of the chief of the	2341
division of mineral resources management. If the chief finds the	2342
method prescribed in this section unsafe, inadequate, or not	2343
suitable, the chief shall require suchthe method to be altered in	2344
such a manner that it will be safe.	2345

The chief may order the immediate suspension of the drilling	2346
or reopening of a well in a coal bearing township after	2347
determining that the drilling or reopening activities present an	2348
imminent and substantial threat to public health or safety or to a	2349
miner's health or safety. Before issuing such an order, the chief	2350
shall notify the permittee in any manner that the chief determines	2351
would provide reasonable notification of the chief's intent to	2352
issue a suspension order. However, the chief may order the	2353
immediate suspension of the drilling or reopening of a well in a	2354
coal bearing township without prior notification if the chief has	2355
made reasonable attempts to notify the permittee and the attempts	2356
have failed. If the chief orders the immediate suspension of such	2357
drilling or reopening, the chief shall provide the permittee	2358
notice of the order as soon as practical.	2359

Not later than five days after the issuance of an order to	2360
immediately suspend the drilling or reopening of a well in a coal	2361
bearing township, the chief shall provide the permittee an	2362
opportunity to be heard and to present evidence that the drilling	2363
or reopening activities will not likely result in an imminent and	2364
substantial threat to public health or safety or to a miner's	2365
health or safety, as applicable. If the chief, after considering	2366
all evidence presented by the permittee, determines that the	2367
activities do not present such a threat, the chief shall revoke	2368
the suspension order.	2369

Notwithstanding any other provision of this chapter, a	2370
permittee may appeal a suspension order issued under this section	2371
to the reclamation commission in accordance with section 1513.13	2372
of the Revised Code.	2373

Sec. 1509.19. (A) A permittee who elects to stimulate a well	2374
shall stimulate the well in a manner that will not endanger	2375
underground sources of drinking water. Not later than five days	2376
before commencing the stimulation of the well, the permittee shall	2377
submit to the chief of the division of mineral resources	2378
management a comprehensive list of each substance and the	2379
concentration of the substance that will be used in the	2380
stimulation of the well. A permittee who elects to stimulate a	2381
well shall comply with the rules adopted under division (C) of	2382
section 1509.22 of the Revised Code. In addition, such a permittee	2383
shall not use hydraulic fracturing fluid that is known to pose a	2384
significant risk to human health.	2385

(B) Not later than twenty-four hours before commencing the	2386
stimulation of a well, the permittee or the permittee's	2387
authorized representative shall notify a mineral resources	2388
inspector. If during the stimulation of a well damage to the	2389
production casing or cement occurs and results in the circulation	2390
of fluids from the annulus of the surface production casing, the	2391
permittee shall immediately terminate the stimulation of the well	2392
and notify the chief. If the chief determines that the casing	2393
and the cement may be remediated in a manner that isolates the	2394
oil and gas bearing zones of the well, the chief may authorize	2395
the completion of the stimulation of the well. If the chief	2396
determines that the stimulation of a well resulted in	2397
irreparable damage to the well, the chief shall order that the	2398
well be plugged and abandoned within thirty days of the issuance	2399
of the order.	2400

For purposes of determining the integrity of the remediation	2401
of the casing or cement of a well that was damaged during the	2402
stimulation of the well, the chief may require the permittee of	2403
the well to submit cement evaluation logs, temperature surveys,	2404
pressure tests, or a combination of such logs, surveys, and tests.	2405

(C) A permittee shall notify the chief or a mineral resources	2406
inspector within twenty-four hours of a violation of any term or	2407
condition of the permit that occurs during hydraulic fracturing.	2408

Sec. 1509.191.  (A) If a person who has experienced a	2409
diminution of the person's water supply or whose water supply is	2410
contaminated believes that the diminution or contamination is the	2411
result of the drilling of a well, conversion of a well to a	2412
different purpose, or operation of a well, the person may send	2413
written notification regarding the person's water supply to the	2414
division of mineral resources management and request the division	2415
to conduct an investigation of the person's water supply. Not	2416
later than ten days after the division's receipt of a written	2417
notification, the chief of the division of mineral resources	2418
management or the chief's authorized representative shall	2419
investigate the water supply that is the subject of the	2420
notification. Not later than forty-five days after receipt of the	2421
notification, the chief shall determine whether a diminution of	2422
the water supply or contamination of the water supply, as	2423
applicable, was caused by the drilling, conversion, or operation	2424
of a well. If the chief determines that a diminution or	2425
contamination of the water supply was caused by the drilling,	2426
conversion, or operation of a well, the chief shall order the	2427
permittee who is responsible for the well to provide a temporary	2428
replacement of the water supply for all of the person's intended	2429
uses. The permittee shall provide the temporary replacement of the	2430
water supply until a permanent replacement of the water supply is	2431
fully implemented. If the chief determines that the diminution or	2432
contamination of the water supply was not caused by the drilling,	2433
conversion, or operation of a well, the chief shall issue an order	2434
stating that the diminution or contamination was not caused by a	2435
well and shall send a copy of the order to the person who	2436
submitted the notification under this section.	2437

If the chief cannot conclusively determine that the	2438
diminution or contamination of the water supply was or was not	2439
caused by the drilling, conversion, or operation of a well, the	2440
chief shall issue an order indicating the chief's inability to	2441
make such a determination. The chief also shall send a notice to	2442
the permittee of each well that may have caused the diminution or	2443
contamination stating that division (B) of this section may apply.	2444

(B)(1) If a water supply that is the subject of a	2445
notification submitted under division (A) of this section is	2446
located within one thousand feet from the surface location of a	2447
well and diminution of the water supply or contamination of the	2448
water supply occurred within six months after completion of	2449
drilling or converting the well or after commencement of operation	2450
of the well, as applicable, there is a rebuttable presumption that	2451
the permittee of the well caused the dimunition or contamination	2452
of the well. A permittee may rebut the presumption by proving at	2453
least one of the following:	2454

(a) The dimunition or contamination of the water supply	2455
existed prior to the drilling, conversion, or operation of the	2456
well.	2457

(b) The person who has experienced the dimunition or	2458
contamination of the water supply refused to allow the permittee	2459
of the well access to the water supply to conduct a survey of the	2460
water supply prior to the drilling, conversion, or operation of	2461
the well.	2462

(c) The dimunition or contamination of the water supply was	2463
caused by something other than the drilling, conversion, or	2464
operation of the well.	2465

(2) Not later than ten days after receipt of an order or	2466
notice from the chief under division (A) of this section, a	2467
permittee of a well to which division (B)(1) of this section	2468
applies shall submit all information that the permittee wishes to	2469
submit in order to rebut the presumption. Not later than thirty	2470
days after receipt of all of the information submitted by a	2471
permittee of a well under division (B)(1) of this section or not	2472
later than thirty days after a permittee of a well received such	2473
an order or notice under division (A) of this section, whichever	2474
is earlier, the chief shall determine if the permittee rebutted	2475
the presumption. If the chief determines that the permittee	2476
rebutted the presumption, the chief shall send notice to the	2477
permittee and to the person that submitted the notification under	2478
division (A) of this section indicating the chief's determination	2479
that the presumption was rebutted. If the chief determines that	2480
the permittee failed to rebut the presumption, the chief shall	2481
order the permittee to provide a temporary replacement of water	2482
supply for all of the person's intended uses. The permittee shall	2483
provide the temporary replacement of water supply until a	2484
permanent replacement of the water supply is fully implemented.	2485

(C) The chief shall adopt rules in accordance with Chapter	2486
119. of the Revised Code that are necessary for the administration	2487
of this section. The rules shall establish all of the following:	2488

(1) Requirements governing and procedures for the	2489
certification of laboratories to conduct water surveys for the	2490
purposes of this section;	2491

(2) Requirements governing and procedures for the collection	2492
of water samples for purposes of such a water survey;	2493

(3) Requirements governing and procedures to be used by a	2494
permittee to demonstrate pursuant to division (B)(1)(b) of this	2495
section that the person who claims to have a dimunition or	2496
contamination of a water supply refused to allow the permittee of	2497
the well access to the water supply to conduct a survey prior to	2498
the drilling, conversion, or operation of the well.	2499

(D) For purposes of rebutting the presumption established in	2500
division (B)(1) of this section, a permittee shall use an	2501
independent laboratory that is certified by the chief to conduct a	2502
survey of a water supply that may be required for purposes of that	2503
division. A certified independent laboratory that conducts a	2504
survey of a water supply shall prepare a report in accordance with	2505
this division and send a copy of the report to the division of	2506
mineral resources management, the permittee, and the person that	2507
submitted the notification under division (A) of this section. A	2508
report of a water survey prepared for purposes of this section	2509
shall contain all of the following:	2510

(1) The location of the water supply and the name of the	2511
surface landowner;	2512

(2) The name of the certified laboratory, the person who	2513
conducted the survey, and the date on which the survey was	2514
conducted;	2515

(3) A description of where and how samples for the survey	2516
were collected;	2517

(4) A description of the type and age, if known, of the water	2518
supply;	2519

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

2520

(6) The name of each applicable permittee;

2521

(7) The results of all laboratory analysis conducted on	2522
samples from the water supply.	2523

(E) Any person may contract with a certified independent	2524
laboratory to survey a water supply in order to support a future	2525
claim that diminution or contamination of the water supply, as	2526
applicable, was or was not caused by the drilling, conversion, or	2527
operation of a well.	2528

Sec. 1509.20.  All owners, lessees,permittees or their	2529
agents, drilling for or producing crude oil or natural gas, shall	2530
use every reasonable precaution in accordance with the most	2531
approved methods of operation to stop and prevent waste of oil or	2532
gas, or both. Any well productive of natural gas in quantity	2533
sufficient to justify utilization shall be utilized or shut	2534
shutdown in within ten days after completionaccordance with the	2535
requirements established in this chapter and rules adopted under	2536
it.	2537

The ownerpermittee of any well producing both oil and gas	2538
may burn such gas in flares when the gas is lawfully produced and	2539
there is no economic market at the well for the escaping gas,	2540
after inspection of the well, the chief of the division of mineral	2541
resources management or a mineral resources inspector, in	2542
consultation with the permittee, determines that it is necessary	2543
to prevent the dangerous accumulation of gas and to protect the	2544
health and safety of the public or the workers at the well.	2545

Sec. 1509.21.  No person shall, without first having obtained	2546
a permit from the chief of the division of mineral resources	2547
management, conduct secondary or additional recovery operations,	2548
including any underground injection of fluids or carbon dioxide	2549
for the secondary or tertiary recovery of oil or natural gas or	2550
for the storage of hydrocarbons that are liquid at standard	2551
temperature or pressure, unless a rule of the chief expressly	2552
authorizes such operations without a permit. SuchThe permit shall	2553
be in addition to any permit required by section 1509.05 of the	2554
Revised Code. Secondary or additional recovery operations shall be	2555
conducted in accordance with rules and orders of the chief and any	2556
terms or conditions of the permit authorizing such operations. In	2557
addition, the chief may authorize tests to evaluate whether fluids	2558
or carbon dioxide may be injected in a reservoir and to determine	2559
the maximum allowable injection pressure. Rules adopted under this	2560
section shall include provisions regarding applications for and	2561
the issuance of permits; the terms and conditions of permits;	2562
entry to conduct inspections and to examine records to ascertain	2563
compliance with this section and rules, orders, and terms and	2564
conditions of permits adopted or issued thereunder; the provision	2565
and maintenance of information through monitoring, recordkeeping,	2566
and reporting; and other provisions in furtherance of the goals of	2567
this section and the Safe Drinking Water Act. To implement the	2568
goals of the Safe Drinking Water Act, the chief shall not issue a	2569
permit for the underground injection of fluids for the secondary	2570
or tertiary recovery of oil or natural gas or for the storage of	2571
hydrocarbons that are liquid at standard temperature and pressure,	2572
unless the chief concludes that the applicant has demonstrated	2573
that the injection will not result in the presence of any	2574
contaminant in underground water that supplies or can be	2575
reasonably expected to supply any public water system, such that	2576
the presence of any such contaminant may result in the system's	2577
not complying with any national primary drinking water regulation	2578
or may otherwise adversely affect the health of persons. Rules,	2579
orders, and terms or conditions of permits adopted or issued under	2580
this section shall be construed to be no more stringent than	2581
required for compliance with the Safe Drinking Water Act, unless	2582
essential to ensure that underground sources of drinking water	2583
will not be endangered.	2584

Sec. 1509.22.  (A) Except when acting in accordance with	2585
section 1509.226 of the Revised Code, noNo person shall place or,	2586
cause to be placed, store, or dispose of brine, crude oil, natural	2587
gas, or other fluids associated with the exploration or	2588
development of oil and gas resources in surface or ground water	2589
or in or on the land in such quantities or in such manner as	2590
actually causes or could reasonably be anticipated to cause	2591
either of the following:	2592

(1) Water used for consumption by humans or domestic animals	2593
to exceed the standards of the Safe Drinking Water Act;	2594

(2) Damage or injury to public health or safety or the	2595
environment.	2596

(B) No person shall store or dispose of brine in violation of	2597
a plan approved under division (A) of section 1509.222 or section	2598
1509.226 of the Revised Code, in violation of a resolution	2599
submitted under section 1509.226 of the Revised Code, or in	2600
violation of rules or orders applicable to those plans or	2601
resolutionsA permittee, a person registered to transport brine	2602
under section 1509.222 of the Revised Code, and a person to whom a	2603
permit has been issued under division (D) of this section jointly	2604
and severally shall ensure that brine and other waste substances	2605
associated with the exploration or development of oil and gas	2606
resources from the permittee's well are stored and disposed of in	2607
accordance with this chapter and rules adopted under it and with	2608
orders issued by the chief of the division of mineral resources	2609
management.	2610

(C) The chief of the division of mineral resources management	2611
shall adopt rules and issue orders regarding storage and disposal	2612
of brine and other waste substances; however, the storage and	2613
disposal of brine and the chief's rules relating to storage and	2614
disposal are subject to all of the following standards:	2615

(1) Brine and other waste substances from any well except an	2616
exempt Mississippian well shall be disposed of only by injection	2617
into an underground formation, including annular disposal if	2618
approved by rule of the chief, which injection shall be subject to	2619
division (D) of this section; by surface application in accordance	2620
with section 1509.226 of the Revised Code; in association with a	2621
method of enhanced recovery as provided in section 1509.21 of the	2622
Revised Code; or by other methods approved by the chief for	2623
testing or implementing a new technology or method of disposal.	2624
Brine from exempt Mississippian wells shall not be discharged	2625
directly into the waters of the state.	2626

(2) Muds, cuttings, and other waste substances shall not be	2627
disposed of in violation of any rule;accordance with the	2628
restoration plan that is included with the applicable permit	2629
application as required by division (A)(11) of section 1509.06 of	2630
the Revised Code.	2631

(3) Pits maySteel tanks shall be used for containing brine	2632
and other waste substances resulting from, obtained from, or	2633
produced in connection with drilling, fracturingwell stimulation,	2634
reworking, reconditioning, plugging back, or plugging operations,	2635
but the pitsthat are located within two thousand five hundred	2636
feet of a lake, stream, or other body of water that is used as a	2637
source of drinking water. The steel tanks shall be constructed	2638
and maintained to prevent the escape of brine and other waste	2639
substances. A steel tank or pit may be used at a well that is	2640
located more than two thousand five hundred feet from a lake,	2641
stream, or other body of water that is used as a source of	2642
drinking water if the use is authorized by the chief. A steel tank	2643
or pit so used shall be constructed and maintained to prevent the	2644
escape of brine and other waste substances.	2645

(4) A dike or pit may be used for spill prevention and	2646
control. A dike or pit so used shall be constructed and	2647
maintained to prevent the escape of brine, and the reservoir	2648
within such a dike or pit shall be kept reasonably free of brine	2649
and other waste substances.	2650

(4) Earthen impoundments constructed pursuant to the	2651
division's specifications may be used for the temporary storage of	2652
brine and other waste substances in association with a saltwater	2653
injection well, an enhanced recovery project, or a solution mining	2654
project;	2655

(5) No pit, earthen impoundment, or dike shall be used for	2656
the temporary storage of brine except in accordance with divisions	2657
(C)(3) and (4)division (C) of this section;.	2658

(6) No pit or dike shall be used for the ultimate disposal of	2659
brine or other waste substances.	2660

(D) No person, without first having obtained a permit from	2661
the chief, shall inject brine or other waste substances resulting	2662
from, obtained from, or produced in connection with oil or gas	2663
drilling, exploration, or production into an underground formation	2664
unless a rule of the chief expressly authorizes the injection	2665
without a permit. The permit shall be in addition to any permit	2666
required by section 1509.05 of the Revised Code, and the permit	2667
application shall be accompanied by a permit fee of one hundred	2668
thousand dollars. The	2669

The chief shall adopt rules in accordance with Chapter 119.	2670
of the Revised Code regarding the injection into wells of brine	2671
and other waste substances resulting from, obtained from, or	2672
produced in connection with oil or gas drilling, exploration, or	2673
production. The rules shall include provisions regarding	2674
applications for and issuance of the permits required by this	2675
division, including eligibility requirements for an applicant;	2676
terms and conditions of permits; entry to conduct inspections and	2677
to examine and copy records to ascertain compliance with this	2678
division and rules, orders, and terms and conditions of permits	2679
adopted or issued under it; the provision and maintenance of	2680
information through monitoring, recordkeeping, and reporting; and	2681
other provisions in furtherance of the goals of this section and	2682
the Safe Drinking Water Act. To implement the goals of the Safe	2683
Drinking Water Act, the chief shall not issue a permit for the	2684
injection of brine or other waste substances resulting from,	2685
obtained from, or produced in connection with oil or gas drilling,	2686
exploration, or production unless the chief concludes that the	2687
applicant has demonstrated that the injection will not result in	2688
the presence of any contaminant in ground water that supplies or	2689
can reasonably be expected to supply any public water system, such	2690
that the presence of the contaminant may result in the system's	2691
not complying with any national primary drinking water regulation	2692
or may otherwise adversely affect the health of persons. Any	2693
exception established under the Safe Drinking Water Act for oil	2694
and gas drilling operations does not apply if it conflicts with	2695
this section or rules adopted under it. The chief may issue an	2696
order without a prior adjudication hearing, that requires	2697
compliance with this section and rules adopted under it and the	2698
terms and conditions of a permit issued under it. This division	2699
and rules, orders, and terms and conditions of permits adopted or	2700
issued under it shall be construed to be no more stringent than	2701
required for compliance with the Safe Drinking Water Act unless	2702
essentialin order to ensure that underground sources of drinking	2703
water will not be endangered.	2704

(E) The ownerperson holding a permit, or an assignee or	2705
transferee who has assumed the obligations and liabilities imposed	2706
by this chapter and any rules adopted or orders issued under it	2707
pursuant to section 1509.31 of the Revised Code, and the operator	2708
of a well shall be liable for a violation of this section or any	2709
rules adopted or orders or terms or conditions of a permit issued	2710
under it.	2711

(F) An owner shallThe chief may order the current permittee	2712
to replace the water supply of the holder of an interest in real	2713
property who obtains all or part of the holder's supply of water	2714
for domestic, agricultural, industrial, or other legitimate use	2715
from an underground or surface source where the supply has been	2716
substantially disrupted by contamination, diminution, or	2717
interruption proximately resulting from the owner'spermittee's	2718
oil or gas operation, or the owner may elect to compensate the	2719
holder of the interest in real property for the difference between	2720
the fair market value of the interest before the damage occurred	2721
to the water supply and the fair market value after the damage	2722
occurred if the cost of replacing the water supply exceeds this	2723
difference in fair market values. However, during the pendency of	2724
any order issued under this division, the owner shall obtain for	2725
the holder or shall reimburse the holder for the reasonable cost	2726
of obtaining a water supply from the time of the contamination,	2727
diminution, or interruption by the operation until the owner has	2728
complied with an order of the chief for compliance with this	2729
division or such an order has been revoked or otherwise becomes	2730
not effective. If the owner elects to pay the difference in fair	2731
market values, but the owner and the holder have not agreed on the	2732
difference within thirty days after the chief issues an order for	2733
compliance with this division, within ten days after the	2734
expiration of that thirty-day period, the owner and the chief each	2735
shall appoint an appraiser to determine the difference in fair	2736
market values, except that the holder of the interest in real	2737
property may elect to appoint and compensate the holder's own	2738
appraiser, in which case the chief shall not appoint an appraiser.	2739
The two appraisers appointed shall appoint a third appraiser, and	2740
within thirty days after the appointment of the third appraiser,	2741
the three appraisers shall hold a hearing to determine the	2742
difference in fair market values. Within ten days after the	2743
hearing, the appraisers shall make their determination by majority	2744
vote and issue their final determination of the difference in fair	2745
market values. The chief shall accept a determination of the	2746
difference in fair market values made by agreement of the owner	2747
and holder or by appraisers under this division and shall make and	2748
dissolve orders accordingly. This division does not affect in any	2749
way the right of any person to enforce or protect, under	2750
applicable law, the person's interest in water resources affected	2751
by an oil or gas operation. Not later than five days after the	2752
chief determines that a holder's water supply has been	2753
substantially disrupted, the permittee shall provide a temporary	2754
replacement of water supply for all of the holder's intended uses.	2755
The permittee shall provide the temporary replacement of water	2756
supply until a permanent replacement of the water supply is fully	2757
implemented. The chief may assess a fine against a permittee for	2758
each day that the permittee fails to replace a holder's water	2759
supply. A permittee's replacement of a holder's water supply shall	2760
not affect the holder's right to bring an action against the	2761
permittee for the permittee's negligence in the substantial	2762
disruption of the holder's water supply.	2763

(G) In any action brought by the state for a violation of	2764
division (A) of this section involving any well at which annular	2765
disposal is used, there shall be a rebuttable presumption	2766
available to the state that the annular disposal caused the	2767
violation if the well is located within a one-quarter-mile radius	2768
of the site of the violation.	2769

(H) In order to provide money to the division of mineral	2770
resources management for the administration of this section, there	2771
is levied on the owner of an injection well the following fees:	2772

(1) Five cents per barrel of each substance that is delivered	2773
to a well to be injected in the well when the substance is	2774
produced within the division of mineral resources management	2775
regulatory district in which the well is located or within an	2776
adjoining mineral resources management regulatory district;	2777

(2) Twenty cents per barrel of each substance that is	2778
delivered to a well to be injected in the well when the substance	2779
is not produced within the division of mineral resources	2780
management regulatory district in which the well is located or	2781
within an adjoining mineral resources management regulatory	2782
district.	2783

The owner of an injection well who is issued a permit under	2784
this section shall collect the fee levied by this division on	2785
behalf of the division of mineral resources management and	2786
forward the fee to the division. The chief shall transmit all	2787
money received under division (H) of this section to the	2788
treasurer of state who shall deposit the money in the state	2789
treasury to the credit of the oil and gas well fund created in	2790
section 1509.02 of the Revised Code. The owner of an injection	2791
well who collects the fee levied by this division may retain up	2792
to three per cent of the amount that is collected.	2793

The chief shall adopt rules in accordance with Chapter 119.	2794
of the Revised Code establishing requirements and procedures for	2795
collection of the fee levied by this division.	2796

(I) In an action under section 1509.04, 1509.32, or 1509.33	2797
of the Revised Code to enforce this section, the court shall grant	2798
preliminary and permanent injunctive relief and impose a civil	2799
penalty upon the showing that the person against whom the action	2800
is brought has violated, is violating, or will violate this	2801
section or rules, orders, or terms or conditions of permits	2802
adopted or issued thereunder. The court shall not require, prior	2803
to granting such preliminary and permanent injunctive relief or	2804
imposing a civil penalty, proof that the violation was, is, or	2805
will be the result of intentional conduct or negligence. In any	2806
such action, any person may intervene as a plaintiff upon the	2807
demonstration that the person has an interest that is or may be	2808
adversely affected by the activity for which injunctive relief or	2809
a civil penalty is sought.	2810

Sec. 1509.221. (A) No person, without first having obtained a	2811
permit from the chief of the division of mineral resources	2812
management, shall drill a well or inject a substance into a well	2813
for the exploration for or extraction of minerals or energy, other	2814
than oil or natural gas, including, but not limited to, the mining	2815
of sulfur by the Frasch process, the solution mining of minerals,	2816
the in situ combustion of fossil fuel, or the recovery of	2817
geothermal energy to produce electric power, unless a rule of the	2818
chief expressly authorizes the activity without a permit. The	2819
permit shall be in addition to any permit required by section	2820
1509.05 of the Revised Code. The	2821

The chief shall adopt rules in accordance with Chapter 119.	2822
of the Revised Code governing the issuance of permits under this	2823
section. The rules shall include provisions regarding the matters	2824
the applicant for a permit shall demonstrate to establish	2825
eligibility for a permit; the form and content of applications for	2826
permits; the terms and conditions of permits; entry to conduct	2827
inspections and to examine and copy records to ascertain	2828
compliance with this section and rules, orders, and terms and	2829
conditions of permits adopted or issued thereunder; provision and	2830
maintenance of information through monitoring, recordkeeping, and	2831
reporting; and other provisions in furtherance of the goals of	2832
this section and the Safe Drinking Water Act. To implement the	2833
goals of the Safe Drinking Water Act, the chief shall not issue a	2834
permit under this section, unless the chief concludes that the	2835
applicant has demonstrated that the drilling, injection of a	2836
substance, and extraction of minerals or energy will not result in	2837
the presence of any contaminant in underground water that supplies	2838
or can reasonably be expected to supply any public water system,	2839
such that the presence of the contaminant may result in the	2840
system's not complying with any national primary drinking water	2841
regulation or may otherwise adversely affect the health of	2842
persons. The chief may issue, without a prior adjudication	2843
hearing, orders requiring compliance with this section and rules,	2844
orders, and terms and conditions of permits adopted or issued	2845
thereunder. This section and rules, orders, and terms and	2846
conditions of permits adopted or issued thereunder shall be	2847
construed to be no more stringent than required for compliance	2848
with the Safe Drinking Water Act, unless essentialin order to	2849
ensure that underground sources of drinking water will not be	2850
endangered.	2851

(B) In order to protect the health and safety of the public,	2852
drinking water sources, and the environment, a person who is	2853
issued a permit under this section shall do all of the following:	2854

(1) Submit to the chief a comprehensive list of each	2855
substance and the corresponding concentration of each substance	2856
that will be used in drilling and in hydraulic fracturing and	2857
recovery processes in order for the chief to establish a water	2858
quality baseline of water supplies that are in close proximity to	2859
the proposed well prior to the commencement of drilling or	2860
hydraulic fracturing. The permittee shall submit the list not	2861
later than six months prior to the start of the drilling or	2862
hydraulic fracturing.	2863

(2) In hydraulic fracturing and recovery processes, use	2864
hydraulic fracturing fluid that is known not to pose a significant	2865
risk to human health;	2866

(3) Use a closed-loop system in drilling operations that	2867
occur within two thousand five hundred feet of a drinking water	2868
source in order to prevent the contamination of surface and ground	2869
water with hydraulic fracturing fluid and to protect drinking	2870
water, the health of the public, and the environment;	2871

(4) Notify the chief or a mineral resources inspector within	2872
twenty-four hours of a violation of any term or condition of the	2873
permit that occurs during drilling operations or hydraulic	2874
fracturing.	2875

(C) In an action under section 1509.04 or 1509.33 of the	2876
Revised Code to enforce this section, the court shall grant	2877
preliminary and permanent injunctive relief and impose a civil	2878
penalty upon the showing that the person against whom the action	2879
is brought has violated, is violating, or will violate this	2880
section or rules, orders, or terms or conditions of permits	2881
adopted or issued thereunder. The court shall not require, prior	2882
to granting such preliminary and permanent injunctive relief or	2883
imposing a civil penalty, proof that the violation was, is, or	2884
will be the result of intentional conduct or negligence. In any	2885
such action, any person may intervene as a plaintiff upon the	2886
demonstration that the person has an interest that is or may be	2887
adversely affected by the activity for which injunctive relief or	2888
a civil penalty is sought.	2889

Sec. 1509.222.  (A)(1) Except as provided in section 1509.226	2890
of the Revised Code, noNo person shall transport brine by vehicle	2891
in this state unless the business entity that employs the person	2892
first registers with and obtains a registration certificate and	2893
identification number from the chief of the division of oil and	2894
gasmineral resources management.	2895

(2) No more than one registration certificate shall be	2896
required of any business entity. Registration certificates issued	2897
under this section are not transferable. An applicant shall file	2898
an application with the chief, containing such information in such	2899
form as the chief prescribes, but including a plan for disposal	2900
that provides for compliance with the requirements of this chapter	2901
and rules of the chief pertaining to the transportation of brine	2902
by vehicle and the disposal of brine so transported and that lists	2903
all disposal sites that the applicant intends to use, the bond	2904
required by section 1509.225 of the Revised Code, and a	2905
certificate issued by an insurance company authorized to do	2906
business in this state certifying that the applicant has in force	2907
a liability insurance policy in an amount not less than threefive	2908
hundred thousand dollars bodily injury coverage and three hundred	2909
thousandone million dollars property damage coverage to pay	2910
damages for injury to persons or property caused by the	2911
collecting, handling, transportation, or disposal of brine. The	2912
policy shall be maintained in effect during the term of the	2913
registration certificate. The policy or policies providing the	2914
coverage shall require the insurance company to give notice to	2915
the chief if the policy or policies lapse for any reason. Upon	2916
such termination of the policy, the chief may suspend the	2917
registration certificate until proper insurance coverage is	2918
obtained. Each application for a registration certificate shall	2919
be accompanied by a nonrefundable fee of five hundred dollars.	2920

(3) If a business entity that has been issued a registration	2921
certificate under this section changes its name due to a business	2922
reorganization or merger, the business entity shall revise the	2923
bond or certificates of deposit required by section 1509.225 of	2924
the Revised Code and obtain a new certificate from an insurance	2925
company in accordance with division (A)(2) of this section to	2926
reflect the change in the name of the business entity.	2927

(B) The chief shall issue an order denying an application for	2928
a registration certificate if the chief finds that either of the	2929
following applies:	2930

(1) The applicant, at the time of applying for the	2931
registration certificate, has been found liable by a final	2932
nonappealable order of a court of competent jurisdiction for	2933
damage to streets, roads, highways, bridges, culverts, or	2934
drainways pursuant to section 4513.34 or 5577.12 of the Revised	2935
Code until the applicant provides the chief with evidence of	2936
compliance with the order;.	2937

(2) The applicant's plan for disposal does not provide for	2938
compliance with the requirements of this chapter and rules of the	2939
chief pertaining to the transportation of brine by vehicle and the	2940
disposal of brine so transportedthe Revised Code pertaining to	2941
the protection of public health and safety and the environment and	2942
the rules adopted under section 1509.22 of the Revised Code.	2943

(C) No applicant shall attempt to circumvent division (B) of	2944
this section by applying for a registration certificate under a	2945
different name or business organization name, by transferring	2946
responsibility to another person or entity, or by any similar act.	2947

(D) A registered transporter shall apply to revise a disposal	2948
plan under procedures that the chief shall prescribe by rule.	2949
However, at a minimum, an application for a revision shall list	2950
all sources and disposal sites of brine currently transported. The	2951
chief shall deny any application for a revision of a plan under	2952
this division if the chief finds that the proposed revised plan	2953
does not provide for compliance with the requirements of this	2954
chapter and rules of the chief pertaining to the transportation of	2955
brine by vehicle and the disposal of brine so transported.	2956
Approvals and denials of revisions shall be by order of the chief.	2957

(E) The chief may adopt rules, issue orders, and attach terms	2958
and conditions to registration certificates as may be necessary to	2959
administer, implement, and enforce sections 1509.222 to 1509.226	2960
1509.225 of the Revised Code for protection of public health or	2961
safety or conservation of natural resources.	2962

Sec. 1509.223.  (A) No permit holderpermittee or owner	2963
lessee of a well shall enter into an agreement with or permit	2964
allow any person to transport brine produced from the well who is	2965
not registered pursuant to section 1509.222 of the Revised Code or	2966
exempt from registration under section 1509.226 of the Revised	2967
Code.	2968

(B) Each registered transporter shall file with the chief of	2969
the division of mineral resources management, on or before the	2970
fifteenth day of April, a statement concerning brine transported,	2971
including quantities transported and source and delivery points,	2972
during the last preceding calendar year, and such other	2973
information in such form as the chief may prescribe.	2974

(C) Each registered transporter shall keep on each vehicle	2975
used to transport brine a daily log and have it available upon the	2976
request of the chief or an authorized representative of the chief	2977
or a peace officer. The log shall, at a minimum, include all of	2978
the following information:	2979

(1) The name of the ownerpermittee or lessee or owners	2980
permittees or lessees of the well or wells producing the brine to	2981
be transported;	2982

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

2983

(3) The name of the driver;

2984

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

2985

(5) The disposal location;

2986

(6) The date and time the brine is disposed of and the amount	2987
of brine disposed of at each location.	2988

No registered transporter shall falsify or fail to keep or	2989
submit the log required by this division.	2990

(D) Each registered transporter shall legibly identify with	2991
reflective paints all vehicles employed in transporting or	2992
disposing of brine. Letters shall be no less than four inches in	2993
height and shall indicate the identification number issued by the	2994
chief, the word "brine," and the name and telephone number of the	2995
transporter.	2996

(E) The chief shall maintain and keep a current list of	2997
persons registered to transport brine under section 1509.222 of	2998
the Revised Code. The list shall be open to public inspection. It	2999
is an affirmative defense to a charge under division (A) of this	3000
section that at the time the permit holderpermittee or owner	3001
lessee of a well entered into an agreement with or permitted	3002
allowed a person to transport brine, the person was shown on the	3003
list as currently registered to transport brine.	3004

Sec. 1509.224.  (A) In addition to any other remedies	3005
provided in this chapter, if the chief of the division of mineral	3006
resources management has reason to believe that a pattern of the	3007
same or similar violations of any requirements of sections	3008
1509.22, 1509.222, or 1509.223 of the Revised Code, or any rule	3009
adopted thereunder or term or condition of the registration	3010
certificate issued thereunder exists or has existed, and the	3011
violations are caused by the transporter's indifference, lack of	3012
diligence, or lack of reasonable care, or are willfully caused by	3013
the transporter, the chief shall immediately issue an order to the	3014
transporter to show cause why the certificate should not be	3015
suspended or revokedsuspending the transporter's registration	3016
certificate. After the issuance of the order, the chief shall	3017
provide the transporter an opportunity to be heard and to present	3018
evidence at an informal hearing conducted by the chief. If, at the	3019
conclusion of the hearing, the chief finds that such a pattern of	3020
violations exists or has existed, the chief shall issue an order	3021
suspending or revoking the transporter's registration certificate.	3022
An order suspending or revoking a certificate under this section	3023
may be appealed under sections 1509.36 and 1509.37 of the Revised	3024
Code, or notwithstanding any other provision of this chapter, may	3025
be appealed directly to the court of common pleas of Franklin	3026
county.	3027

(B) Before issuing an order denying a registration	3028
certificate; approving or denying approval of an application for	3029
revision of a registered transporter's plan for disposal; or to	3030
implement, administer, or enforce section 1509.22, 1509.221,	3031
1509.222, 1509.223, or 1509.225, or 1509.226 of the Revised Code	3032
and rules and terms and conditions of registration certificates	3033
adopted or issued thereunder pertaining to the transportation of	3034
brine by vehicle and the disposal of brine so transported, the	3035
chief shall issue a preliminary order indicating the chief's	3036
intent to issue a final order. The preliminary order shall clearly	3037
state the nature of the chief's proposed action and the findings	3038
on which it is based and shall state that the preliminary order	3039
becomes a final order thirty days after its issuance unless the	3040
person to whom the preliminary order is directed submits to the	3041
chief a written request for an informal hearing before the chief	3042
within that thirty-day period. At the hearing the person may	3043
present evidence as to why the preliminary order should be revoked	3044
or modified. Based upon the findings from the informal hearing,	3045
the chief shall revoke, issue, or modify and issue the preliminary	3046
order as a final order. A final order may be appealed under	3047
sections 1509.36 and 1509.37 of the Revised Code.	3048

Sec. 1509.225.  (A) Before being issued a registration	3049
certificate under section 1509.222 of the Revised Code, an	3050
applicant shall execute and file with the division of mineral	3051
resources management a surety bond for fifteen thousandone	3052
hundred thousand dollars to provide immediate compensation for	3053
damage and injury resulting from transporters' violations of	3054
sections 1509.22, 1509.222, and 1509.223 of the Revised Code, all	3055
rules and orders of the chief of the division of mineral resource	3056
management relating thereto, and all terms and conditions of the	3057
registration certificate imposed thereunder. The applicant may	3058
deposit with the chief, in lieu of a surety bond, cash in an	3059
amount equal to the surety bond as prescribed in this section, or	3060
negotiable certificates of deposit issued by any bank organized or	3061
transacting business in this state, or certificates of deposit	3062
issued by any building and loan association as defined in section	3063
1151.01 of the Revised Code, having a cash value equal to or	3064
greater than the amount of the surety bond as prescribed in this	3065
section. Cash or certificates of deposit shall be deposited upon	3066
the same terms as those upon which surety bonds may be deposited.	3067
If certificates of deposit are deposited with the chief in lieu of	3068
a surety bond, the chief shall require the bank or building and	3069
loan association that issued any such certificate to pledge	3070
securities of a cash value equal to the amount of the certificate	3071
that is in excess of the amount insured by any of the agencies and	3072
instrumentalities created under the "Federal Deposit Insurance	3073
Act," 64 Stat. 873 (1950), 12 U.S.C. 1811, as amended, and	3074
regulations adopted under it, including at least the federal	3075
deposit insurance corporation, bank insurance fund, and savings	3076
association insurance fund.	3077

Such securities shall be security for the repayment of the	3078
certificate of deposit. Immediately upon a deposit of cash or	3079
certificates with the chief, the chief shall deliver it to the	3080
treasurer of state who shall hold it in trust for the purposes for	3081
which it has been deposited.	3082

(B) The surety bond provided for in this section shall be	3083
executed by a surety company authorized to do business in this	3084
state. The chief shall not approve any bond until it is personally	3085
signed and acknowledged by both principal and surety, or as to	3086
either by an attorney in fact, with a certified copy of the power	3087
of attorney attached thereto. The chief shall not approve such a	3088
bond unless there is attached a certificate of the superintendent	3089
of insurance that the company is authorized to transact a fidelity	3090
and surety business in this state. All bonds shall be given in a	3091
form to be prescribed by the chief.	3092

(C) If a registered transporter is found liable for a	3093
violation of section 1509.22, 1509.222, or 1509.223 of the Revised	3094
Code or a rule, order, or term or condition of a certificate	3095
involving, in any case, damage or injury to persons or property,	3096
or both, the court may order the forfeiture of any portion of the	3097
bond, cash, or other securities required by this section in full	3098
or partial payment of damages to the person to whom the damages	3099
are due. The treasurer of state and the chief shall deliver the	3100
bond or any cash or other securities deposited in lieu of bond, as	3101
specified in the court's order, to the person to whom the damages	3102
are due; however, execution against the bond, cash, or other	3103
securities, if necessary, is the responsibility of the person to	3104
whom the damages are due. The chief shall not release the bond,	3105
cash, or securities required by this section except by court order	3106
or until two years after the date on which a registration is	3107
terminated.	3108

(D) This section does not preclude recourse under an	3109
insurance policy that is required by section 1509.222 of the	3110
Revised Code.	3111

Sec. 1509.23.  (A) Rules of theThe chief of the division of	3112
mineral resources management may specify, in consultation with the	3113
technical advisory council on oil and gas created in section	3114
1509.38 of the Revised Code, shall adopt rules that require the	3115
implementation and use of best operating practices that are	3116
recognized by the oil and gas industry to be followed in the	3117
drilling of wells and production of oil and gas for protection of	3118
publicthe health orand safety orof persons working at a well	3119
site and of the public and to preventminimize damage to natural	3120
resources, including specificationthe environment. The rules	3121
shall require a permittee and all persons working at a well to	3122
utilize those practices. In addition, the rules shall establish	3123
requirements for all of the following:	3124

(1) Appropriate drilling and extraction devices and	3125
techniques;	3126

(2) Minimum distances that wells and other excavations,	3127
structures, and equipment shall be located from water wells,	3128
streets, roads, highways, rivers, lakes, streams, ponds, other	3129
bodies of water, railroad tracks, public or private recreational	3130
areas, zoning districts, and buildings or other structures;	3131

(3) Other methods of operation;

3132

(4) Procedures, methods, and equipment and other requirements	3133
for equipment to prevent and contain discharges of oil from oil	3134
production facilities and oil drilling and workover facilities	3135
consistent with and equivalent in scope, content, and coverage to	3136
section 311(j)(1)(c) of the "Federal Water Pollution Control Act	3137
Amendments of 1972," 86 Stat. 886, 33 U.S.C.A. 1251, as amended,	3138
and regulations adopted under it.	3139

The rules adopted under this division shall not conflict with	3140
any provision of this chapter.	3141

(B) The chief, in consultation with the emergency response	3142
commission created in section 3750.02 of the Revised Code, shall	3143
adopt rules in accordance with Chapter 119. of the Revised Code	3144
that specify the information that shall be included in an	3145
electronic database that the chief shall create and host. The	3146
information shall be that which the chief considers to be	3147
appropriate for the purpose of responding to emergency situations	3148
that pose a threat to public health or safety or the environment.	3149
At thea minimum, the information shall include that which a	3150
person who is regulated under this chapter is required to submit	3151
under the "Emergency Planning and Community Right-To-Know Act of	3152
1986," 100 Stat. 1728, 42 U.S.C.A. 11001, and regulations adopted	3153
under it.	3154

In addition, the rules shall specify whether and to what	3155
extent the database and the information that it contains will be	3156
made accessible to the public. The rules shall ensure that the	3157
database will be made available via the internet or a system of	3158
computer disks to the emergency response commission and to every	3159
local emergency planning committee and fire department in this	3160
state.	3161

Sec. 1509.24.  The chief of the division of mineral resources	3162
management, with the approval of the technical advisory council on	3163
oil and gas created in section 1509.38 of the Revised Code, may	3164
shall adopt, amend, or rescind rules relative to minimum acreage	3165
requirements for drilling units and minimum distances from which	3166
between an existing well in a drilling unit and a new well that	3167
may be drilled or an existing well deepened, plugged back, or	3168
reopened to a source of supply different from the existing pool	3169
from boundaries of tracts,in that drilling units, and other wells	3170
for the purpose of conserving oil and gas reserves. Rulesunit.	3171
In addition, the rules shall address and attempt to accomplish all	3172
of the following:	3173

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

3174

(B) Protection of the health and safety of the public,	3175
employees of a permittee or operator, and workers at a well site;	3176

(C) Minimization of the impact on the environment in	3177
furtherance of the requirements established in this chapter and	3178
rules adopted under it and of the goals of the Safe Drinking Water	3179
Act.	3180

Rules adopted under this section and special orders made	3181
under section 1509.25 of the Revised Code shall apply only to new	3182
wells to be drilled or existing wells to be deepened, plugged	3183
back, or reopened to a source of supply different from the	3184
existing pool for the purpose of extracting oil or gas in their	3185
natural state.	3186

Sec. 1509.26. TheTwo or more owners of adjoining tracts may	3187
agree to pool suchthe tracts to form a drilling unit that	3188
conforms to the minimum acreage and distance requirements of the	3189
division of mineral resources management established in rules	3190
adopted under section 1509.24 or 1509.25 of the Revised Code. Such	3191
The agreement shall be in writing, a copy of which shall be	3192
submitted to the division with the application for a permit	3193
required by section 1509.05 of the Revised Code. Parties to the	3194
agreement shall designate one of their number as the applicant for	3195
suchthe permit.	3196

Sec. 1509.30.  The holder of a royalty interest in any	3197
natural gas well may request the ownerpermittee to report to him	3198
the holder, no more frequently than the payment period in histhe	3199
holder's contract with the ownerpermittee, any or all of the	3200
following:	3201

(A) The volume of natural gas for which hethe holder was or	3202
is being paid for the most recent period in histhe holder's	3203
contract with the ownerpermittee, and for any other previous	3204
periods within two years of the date of production for which the	3205
ownerpermittee has not already given himthe holder such a report	3206
within the most recent six months;	3207

(B) The price per thousand cubic feet paid to the holder for	3208
suchthe gas;	3209

(C) The volume of natural gas whichthat was shown to have	3210
passed through the owner'spermittee's meter for the field	3211
containing the holder's well.	3212

The ownerpermittee shall preserve records of such volume for	3213
at least twothree years after the date the record is made	3214
termination of the lease agreement with the holder. Upon receipt	3215
by the ownerpermittee or histhe permittee's agent of a request	3216
by the holder pursuant to this section, the ownerpermittee shall	3217
supply the information to the holder within fifteen days, or the	3218
end of the current payment period in the contract, whichever is	3219
laterfourteen days of receipt of the request.	3220

If the holder's well is metered, the ownerpermittee shall in	3221
such a report also inform the holder of the volume of natural gas	3222
whichthat was shown to have passed through suchthe meter during	3223
the period.	3224

The volume of gas required to be reported by this section	3225
shall be indicated on the basis of a standard cubic foot of gas.	3226

Sec. 1509.31. (A) Whenever the entire interest of an oil and	3227
gas lease is assigned or otherwise transferred, the assignor or	3228
transferor shall notify the holders of the royalty interests, and,	3229
if a well or wells exist on the lease, the assignor or transferor	3230
also shall notify the division of mineral resources management,	3231
of the name and address of the assignee or transferee by	3232
certified mail, return receipt requested, not later than thirty	3233
days after the date of the assignment or transfer. When notice of	3234
any such assignment or transfer is required to be provided to the	3235
division, it shall be provided on a form prescribed and provided	3236
by the division and verified by both the assignor or transferor	3237
and by the assignee or transferee and shall be accompanied by a	3238
nonrefundable fee of one hundred dollars for each well. The	3239
notice form applicable to assignments or transfers of a well to	3240
the owner of the surface estate of the tract on which the well is	3241
located shall contain a statement informing the landowner that	3242
the well may require periodic servicing to maintain its	3243
productivity or to maintain the structural integrity of its plug;	3244
that, upon assignment or transfer of the well to the landowner,	3245
the landowner becomes responsible for compliance with the	3246
requirements of this chapter and rules adopted under it,	3247
including, without limitation, the proper disposal of brine	3248
obtained from the well, the plugging of the well when it becomes	3249
incapable of producing oil or gas, and the restoration of the	3250
well site; and that, upon assignment or transfer of the well to	3251
the landowner, the landowner becomes responsible for the costs	3252
of compliance with the requirements of this chapter and rules	3253
adopted under it and the costs for operating and servicing the	3254
well.	3255

(B) When the entire interest of a well is proposed to be	3256
assigned or otherwise transferred to the landowner for use as an	3257
exempt domestic well, the owner of the well who has been issued a	3258
permit under this chapter for the well shall submit to the chief	3259
an application for the assignment or transfer that contains all	3260
documents that the chief requires and a nonrefundable fee of one	3261
hundred dollars. The application for such an assignment or	3262
transfer shall be prescribed and provided by the chief. The chief	3263
may approve the application if the application is accompanied by	3264
a release of all of the oil and gas leases that are included in	3265
the applicable formation of the drilling unit, the release is in	3266
a form such that the well ownership merges with the fee simple	3267
interest of the surface tract, and the release is in a form that	3268
may be recorded. However, if the owner of the well does not	3269
release the oil and gas leases associated with the well that is	3270
proposed to be assigned or otherwise transferred or if the fee	3271
simple tract that results from the merger of the well ownership	3272
with the fee simple interest of the surface tract is less than	3273
five acres, the proposed exempt domestic well owner shall post a	3274
five thousand dollar bond with the division of mineral resources	3275
management prior to the assignment or transfer of the well to	3276
ensure that the well will be properly plugged. The chief, for	3277
good cause, may modify the requirements of this section	3278
governing the assignment or transfer of the interests of a well	3279
to the landowner. Upon the assignment or transfer of the well,	3280
the owner of an exempt domestic well is subject to the severance	3281
tax levied under section 5749.02 of the Revised Code and all	3282
applicable fees established in this chapter.	3283

(C) The ownerperson holding a permit under section 1509.05	3284
of the Revised Code is responsible for all obligations and	3285
liabilities imposed by this chapter and any rules, orders, and	3286
terms and conditions of a permit adopted or issued under it, and	3287
no assignment or transfer by the ownerperson relieves the owner	3288
person of the obligations and liabilities until and unless the	3289
assignee or transferee files with the division the information	3290
described in divisions (A)(1), (2), (3), (4), (5), (10), (11), and	3291
(12), and (13) of section 1509.06 of the Revised Code; obtains	3292
liability insurance coverage required by section 1509.07 of the	3293
Revised Code, except when none is required by that section; and	3294
executes and files a surety bond, negotiable certificates of	3295
deposit or irrevocable letters of credit, or cash, as described	3296
in that section. Instead of a bond, but only upon acceptance by	3297
the chief of the division of mineral resources management, the	3298
assignee or transferee may file proof of financial	3299
responsibility, described in section 1509.07 of the Revised Code.	3300
Section 1509.071 of the Revised Code applies to the surety bond,	3301
cash, and negotiable certificates of deposit and irrevocable	3302
letters of credit described in this section. Unless the chief	3303
approves a modification, each assignee or transferee shall operate	3304
in accordance with the plans and information filed by the permit	3305
holder pursuant to section 1509.06 of the Revised Code.	3306

(D) If a mortgaged property that is being foreclosed is	3307
subject to an oil or gas lease, pipeline agreement, or other	3308
instrument related to the production or sale of oil or natural	3309
gas and the lease, agreement, or other instrument was recorded	3310
subsequent to the mortgage, and if the lease, agreement, or other	3311
instrument is not in default, the oil or gas lease, pipeline	3312
agreement, or other instrument, as applicable, has priority over	3313
all other liens, claims, or encumbrances on the property so that	3314
the oil or gas lease, pipeline agreement, or other instrument is	3315
not terminated or extinguished upon the foreclosure sale of the	3316
mortgaged property. If the owner of the mortgaged property was	3317
entitled to oil and gas royalties before the foreclosure sale, the	3318
oil or gas royalties shall be paid to the purchaser of the	3319
foreclosed property.	3320

Sec. 1509.32.  Any person adversely affected may file with	3321
the chief of the division of mineral resources management a	3322
written complaint alleging failure to restore disturbed land	3323
surfaces in violation of section 1509.072 or 1509.22 of the	3324
Revised Code or a rule adopted thereunder.	3325

UponNot later than five days after receipt of a complaint,	3326
the chief shall cause an investigation to be made of the lands	3327
where the alleged violation has occurred and. Not later than	3328
thirty days after receipt of the complaint, the chief shall	3329
prepare and complete a report that discusses in detail the chief's	3330
findings and shall make the report available to the public. The	3331
chief shall send copies of the investigation report to the person	3332
who filed the complaint and to the ownerperson who, according to	3333
the records of the chief, is responsible for the restoration of	3334
the site. Upon finding a violation, the chief shall order the	3335
ownerresponsible person to eliminate the violation within a	3336
specified timeimmediately. IfThe responsible person shall	3337
complete the restoration of the site within thirty days after the	3338
issuance of the order unless the chief authorizes a longer period	3339
of time because weather conditions prevented the completion of	3340
the site restoration within the thirty-day period.	3341

If the ownerperson fails to eliminate the violation within	3342
the time specifiedauthorized, the chief mayshall request the	3343
prosecuting attorney of the county in which the violation occurs	3344
or the attorney general to bring appropriate action to secure	3345
compliance with such sectionsthe applicable section or rule. If	3346
the chief fails to bring an appropriate action to secure	3347
compliance with such sections within twenty days after the time	3348
specifiedNotwithstanding an order issued under this section or	3349
any other action or inaction by the chief, the person filing the	3350
complaint may request the prosecuting attorney of the county in	3351
which the violation occurs to bring an appropriate action to	3352
secure compliance with such sectionsthe applicable section or	3353
rule. The division of mineral resources management mayshall	3354
cooperate with any state or local agency to provide technical	3355
advice or minimum standards for the restoration of various soils	3356
and land surfaces or to assist in any investigation.	3357

Sec. 1509.33.  (A) Whoever violates sections 1509.01 to	3358
1509.31 of the Revised Code, or any rules adopted or orders or	3359
terms or conditions of a permit or registration certificate issued	3360
pursuant to these sections for which no specific penalty is	3361
provided in this section, shall pay a civil penalty of not less	3362
than two hundred fifty dollars nor more than four thousandone	3363
million dollars for each offense.	3364

(B) Whoever violates section 1509.221 of the Revised Code or	3365
any rules adopted or orders or terms or conditions of a permit	3366
issued thereunder shall pay a civil penalty of not moreless than	3367
two thousand five hundred dollars nor more than one million	3368
dollars for each violation.	3369

(C) Whoever violates division (D) of section 1509.22 or	3370
division (A)(1) of section 1509.222 of the Revised Code shall pay	3371
a civil penalty of not less than twoten thousand five hundred	3372
dollars nor more than twenty thousandone million dollars for each	3373
violation.	3374

(D) Whoever violates division (C)(2) of section 1509.071 or	3375
division (A) or (B) of section 1509.22 of the Revised Code shall	3376
pay a civil penalty of not less than two thousand five hundred	3377
dollars nor more than ten thousandone million dollars for each	3378
violation.	3379

(E) Whoever violates division (A) of section 1509.223 of the	3380
Revised Code shall pay a civil penalty of not less than five	3381
hundred dollars nor more than ten thousand dollars for each	3382
violation.	3383

(F) Whoever violates section 1509.072 of the Revised Code or	3384
any rules adopted or orders issued to administer, implement, or	3385
enforce that section shall pay a civil penalty of not less than	3386
five hundred dollars nor more than five thousand dollars for each	3387
violation.	3388

(G) Whoever violates division (A) of section 1509.14 of the	3389
Revised Code shall pay a civil penalty of not less than one	3390
thousand dollars for each violation.	3391

(H) In addition to any other penalties provided in this	3392
chapter, whoever violates division (B) of section 1509.22 or	3393
division (A)(1) of section 1509.222 or knowingly violates division	3394
(A) of section 1509.223 of the Revised Code is liable for any	3395
damage or injury caused by the violation and for the cost of	3396
rectifying the violation and conditions caused by the violation.	3397
If two or more persons knowingly violate one or more of suchthose	3398
divisions in connection with the same event, activity, or	3399
transaction, they are jointly and severally liable under this	3400
division.	3401

(H)(I) The attorney general, upon the request of the chief of	3402
the division of mineral resources management, shall commence an	3403
action under this section against any person who violates sections	3404
1509.01 to 1509.31 of the Revised Code, or any rules adopted or	3405
orders or terms or conditions of a permit or registration	3406
certificate issued pursuant to these sections. Any action under	3407
this section is a civil action, governed by the Rules of Civil	3408
Procedure and other rules of practice and procedure applicable to	3409
civil actions. The remedy provided in this division is cumulative	3410
and concurrent with any other remedy provided in this chapter, and	3411
the existence or exercise of one remedy does not prevent the	3412
exercise of any other, except that no. A person shallmay be	3413
subject to both a civil penalty under division (A), (B), (C), or	3414
(D) of this section and a criminal penalty under section 1509.99	3415
of the Revised Code for the same offense.	3416

Sec. 1509.34. (A) If a permittee fails to pay the fees	3417
imposed by this chapter or the taxes levied on the severance of	3418
oil and gas under section 5749.02 of the Revised Code, or if the	3419
chief of the division of mineral resources management incurs	3420
costs under division (E) of section 1509.071 of the Revised Code	3421
to correct conditions associated with the owner's well that the	3422
chief reasonably has determined are causing imminent health or	3423
safety risks, the division of mineral resources management shall	3424
have a priority lien against that permittee's interest in the	3425
applicable well in front of all other creditors for the amount	3426
of any such unpaid fees and taxes and costs incurred. The chief	3427
shall file a statement in the office of the county recorder of	3428
the county in which the applicable well is located of the amount	3429
of the unpaid fees and taxes and costs incurred as described in	3430
this division. The statement shall constitute a lien on the	3431
permittee's interest in the well as of the date of the filing.	3432
The lien shall remain in force so long as any portion of the	3433
lien remains unpaid or until the chief issues a certificate of	3434
release of the lien. If the chief issues a certificate of release	3435
of the lien, the chief shall file the certificate of release in	3436
the office of the applicable county recorder.	3437

(B) The chief promptly shall issue a certificate of release	3438
of a lien under either of the following circumstances:	3439

(1) Upon the repayment in full of the amount of unpaid fees	3440
imposed by this chapter or taxes levied on the severance of oil	3441
and gas under section 5749.02 of the Revised Code or costs	3442
incurred by the chief under division (E) of section 1509.071 of	3443
the Revised Code to correct conditions associated with the	3444
permittee's well that the chief reasonably has determined are	3445
causing imminent health or safety risks;	3446

(2) Any other circumstance that the chief determines to be in	3447
the best interests of the state.	3448

(C) The chief may modify the amount of a lien under this	3449
section. If the chief modifies a lien, the chief shall file a	3450
statement in the office of the county recorder of the applicable	3451
county of the new amount of the lien.	3452

(D) A permittee regarding which the division has recorded a	3453
lien against the permittee's interest in a well in accordance	3454
with this section shall not transfer a well, a lease, or mineral	3455
rights to another permittee or person until the chief issues a	3456
certificate of release for each lien against the permittee's	3457
interest in the well.	3458

(E) All money from the collection of liens under this section	3459
shall be deposited in the state treasury to the credit of the oil	3460
and gas well fund created in section 1509.02 of the Revised Code.	3461

Sec. 1509.35. (A) There is hereby created an oil and gas	3462
commission consisting of fivenine members appointed by the	3463
governor. Terms of office shall be for fivethree years,	3464
commencing on the fifteenth day of October and ending on the	3465
fourteenth day of October, except that the terms of the first	3466
five members of the board shall be for one, two, three, four, and	3467
five years, respectively, as designated by the governor at the	3468
time of the appointment. Each member shall hold office from the	3469
date of appointment until the end of the term for which the member	3470
was appointed. Any member appointed to fill a vacancy occurring	3471
prior to the expiration of the term for which the member's	3472
predecessor was appointed shall hold office for the remainder of	3473
suchthat term. Any member shall continue in office subsequent to	3474
the expiration date of the member's term until a successor takes	3475
office, or until a period of sixty days has elapsed, whichever	3476
occurs first. Each vacancy occurring on the commission shall be	3477
filled by appointment within sixty days after the vacancy occurs.	3478
One of the appointees to the commission shall be a person who, by	3479
reason of the person's previous vocation, employment, or	3480
affiliations, can be classed as a representative of a major	3481
petroleum company. OneFive of the appointees to the commission	3482
shall be a personpersons who, by reason of the person'stheir	3483
previous vocationvocations, employment, or affiliations, can be	3484
classed as a representativerepresentatives of the public. One of	3485
the appointees to the commission shall be a person who, by reason	3486
of the person's previous training and experience, can be classed	3487
as a representative of independent petroleum operators. One of the	3488
appointees to the commission shall be a person who, by reason of	3489
the person's previous training and experience, can be classed as	3490
one learned and experienced in oil and gas law. One of the	3491
appointees to the commission shall be a person who, by reason of	3492
the person's previous training and experience, can be classed as	3493
one learned and experienced in geology. Not more than threefive	3494
members shall be members of the same political party. This	3495
division does not apply to temporary members appointed under	3496
division (C) of this section.	3497

(B) ThreeFive members constitute a quorum and no action of	3498
the commission is valid unless it has the concurrence of at least	3499
a majority of the members voting on that action. The commission	3500
shall keep a record of its proceedings.	3501

(C) If the chairperson of the commission determines that a	3502
quorum cannot be obtained for the purpose of considering a matter	3503
that will be before the commission because of vacancies or recusal	3504
of its members, the chairperson may contact the technical advisory	3505
council on oil and gas created in section 1509.38 of the Revised	3506
Code and request a list of members of the council who may serve as	3507
temporary members of the commission. Using the list provided by	3508
the council, the chairperson may appoint temporary members to the	3509
commission. The appointment of temporary members shall be for only	3510
the matter for which a quorum cannot be obtained. The number of	3511
temporary members appointed by the chairperson shall not exceed	3512
the number that is necessary to obtain a quorum for the matter. A	3513
temporary member of the commission has the same authority, rights,	3514
and obligations as a member of the commission, including the right	3515
to compensation and other expenses as provided in this section.	3516
The authority, rights, and obligations of a temporary member cease	3517
when the temporary member's service on the commission ends.	3518

(D) Each member shall be paid an amount fixed pursuant to	3519
division (J) of section 124.15 of the Revised Code per diem when	3520
actually engaged in the performance of work as a member and when	3521
engaged in travel necessary in connection with suchthat work. In	3522
addition to such compensation each member shall be reimbursed for	3523
all traveling, hotel, and other expenses necessarily incurred in	3524
the performance of work as a member.	3525

(E) The commission shall select from among its members a	3526
chairperson, a vice-chairperson, and a secretary. These officers	3527
shall serve for terms of one year.	3528

(F) The governor may remove any member of the commission from	3529
office for inefficiency, neglect of duty, malfeasance,	3530
misfeasance, or nonfeasance.	3531

(G) The commission, in accordance with Chapter 119. of the	3532
Revised Code, shall adopt rules to govern its procedure.	3533

Sec. 1509.36.  Any person claiming to be aggrieved or	3534
adversely affected by an order by the chief of the division of	3535
mineral resources management may appeal to the oil and gas	3536
commission for an order vacating or modifying suchthe order.	3537

The person so appealing to the commission shall be known as	3538
appellant and the chief shall be known as appellee. Appellant and	3539
appellee shall be deemed to be parties to the appeal.	3540

The appeal shall be in writing and shall set forth the order	3541
complained of and the grounds upon which the appeal is based. The	3542
appeal shall be filed with the commission within thirty days after	3543
the date upon which the appellant received notice by registered	3544
mail of the making of the order complained of. Notice of the	3545
filing of the appeal shall be filed with the chief within three	3546
days after the appeal is filed with the commission.	3547

Upon the filing of the appeal the commission promptly shall	3548
fix the time and place at which the hearing on the appeal will be	3549
held, and shall give the appellant and the chief at least ten	3550
thirty days' written notice thereof by mail. The commission may	3551
postpone or continue any hearing upon its own motion or upon	3552
application of appellant or of the chief.	3553

The filing of an appeal provided for in this section does not	3554
automatically suspend or stay execution of the order appealed	3555
from, but upon application by the appellant the commission may	3556
suspend or stay such execution pending determination of the appeal	3557
upon such terms as the commission considers proper.	3558

Either party to the appeal or any interested person who,	3559
pursuant to commission rules has been granted permission to	3560
appear, may submit such evidence as the commission considers	3561
admissible.	3562

For the purpose of conducting a hearing on an appeal, the	3563
commission may require the attendance of witnesses and the	3564
production of books, records, and papers, and it may, and at the	3565
request of any party it shall, issue subpoenas for witnesses or	3566
subpoenas duces tecum to compel the production of any books,	3567
records, or papers, directed to the sheriffs of the counties where	3568
such witnesses are found. The subpoenas shall be served and	3569
returned in the same manner as subpoenas in criminal cases are	3570
served and returned. The fees of sheriffs shall be the same as	3571
those allowed by the court of common pleas in criminal cases.	3572
Witnesses shall be paid the fees and mileage provided for under	3573
section 119.094 of the Revised Code. Such fees and mileage	3574
expenses incurred at the request of the appellant shall be paid	3575
in advance by the appellant, and the remainder of suchthose	3576
expenses shall be paid out of funds appropriated for the	3577
expenses of the division of mineral resources management.	3578

In case of disobedience or neglect of any subpoena served on	3579
any person, or the refusal of any witness to testify to any matter	3580
regarding which the witness may be lawfully interrogated, the	3581
court of common pleas of the county in which suchthe	3582
disobedience, neglect, or refusal occurs, or any judge thereof,	3583
on application of the commission or any member thereof, shall	3584
compel obedience by attachment proceedings for contempt as in the	3585
case of disobedience of the requirements of a subpoena issued	3586
from suchthat court or a refusal to testify therein. Witnesses	3587
at such hearings shall testify under oath, and any member of the	3588
commission may administer oaths or affirmations to persons who so	3589
testify.	3590

At the request of any party to the appeal, a stenographic	3591
record of the testimony and other evidence submitted shall be	3592
taken by an official court shorthand reporter at the expense of	3593
the party making the request therefor. SuchThe record shall	3594
include all of the testimony and other evidence and the rulings on	3595
the admissibility thereof presented at the hearing. The commission	3596
shall pass upon the admissibility of evidence, but any party may	3597
at the time object to the admission of any evidence and except to	3598
the rulings of the commission thereon, and if the commission	3599
refuses to admit evidence the party offering same may make a	3600
proffer thereof, and suchthe proffer shall be made a part of the	3601
record of suchthe hearing.	3602

If upon completion of the hearing the commission finds that	3603
the order appealed from was lawful and reasonable, it shall make a	3604
written order affirming the order appealed from; if the commission	3605
finds that the order was unreasonable or unlawful, it shall make a	3606
written order vacating the order appealed from and making the	3607
order that it finds the chief should have made. Every order made	3608
by the commission shall contain a written finding by the	3609
commission of the facts upon which the order is based.	3610

Notice of the making of the order shall be given forthwith to	3611
each party to the appeal by mailing a certified copy thereof to	3612
each such party by certified mail.	3613

The order of the commission is final unless vacated by the	3614
court of common pleas of Franklin county in an appeal as provided	3615
for in section 1509.37 of the Revised Code. Sections 1509.01 to	3616
1509.37 of the Revised Code, providing for appeals relating to	3617
orders by the chief or by the commission, or relating to rules	3618
adopted by the chief, do not constitute the exclusive procedure	3619
that any person who believes the person's rights to be unlawfully	3620
affected by those sections or any official action taken thereunder	3621
must pursue in order to protect and preserve those rights, nor do	3622
those sections constitute a procedure that that person must pursue	3623
before that person may lawfully appeal to the courts to protect	3624
and preserve those rights.	3625

Sec. 1509.38. There is hereby created in the division of	3626
mineral resources management a technical advisory council on oil	3627
and gas, which shall consist of eight members to be appointed by	3628
the governor with the advice and consent of the senate. Three	3629
members shall be independent oil or gas producers, operators, or	3630
their representatives, operating and producing primarily in this	3631
state, three members shall be oil or gas producers, operators, or	3632
their representatives having substantial oil and gas producing	3633
operations in this state and at least one other state, one member	3634
shall represent the public, and one member shall represent persons	3635
having landowners' royalty interests in oil and gas production.	3636
All members shall be residents of this state, and all members,	3637
except the members representing the public and persons having	3638
landowners' royalty interests, shall have at least five years of	3639
practical or technical experience in oil or gas drilling and	3640
production. Not more than one member may represent any one	3641
company, producer, or operator.	3642

Terms of office shall be for three years, commencing on the	3643
first day of February and ending on the thirty-first day of	3644
January. Each member shall hold office from the date of	3645
appointment until the end of the term for which the member was	3646
appointed. A vacancy in the office of a member shall be filled by	3647
the governor, with the advice and consent of the senate. Any	3648
member appointed to fill a vacancy occurring prior to the	3649
expiration of the term for which the member's predecessor was	3650
appointed shall hold office for the remainder of that term. Any	3651
member shall continue in office subsequent to the expiration date	3652
of the member's term until the member's successor takes office, or	3653
until a period of sixty days has elapsed, whichever occurs first	3654
There is hereby created in the division of mineral resources	3655
management a technical advisory council on oil and gas, which	3656
shall consist of the five members to be appointed by the governor	3657
with the advice and consent of the senate. One of the members	3658
shall be a person who, by reason of the person's previous training	3659
and experience, is a representative of independent petroleum	3660
operators. One of the members shall be a person who, by reason of	3661
the person's previous training and experience, is a person learned	3662
and experienced in oil and gas law. One of the members shall be a	3663
person who, by reason of the person's previous training and	3664
experience, is a person learned and experienced in geology. Two of	3665
the members shall be persons who, by reason of their previous	3666
vocations, employment, or affiliations, are representatives of the	3667
public. All members shall be residents of this state, and all	3668
members, except the members representing the public, shall have at	3669
least five years of practical or technical experience in oil or	3670
gas drilling and production.	3671

Terms of office shall be for three years, commencing on the	3672
first day of February and ending on the thirty-first day of	3673
January. A member shall hold office from the date of appointment	3674
until the end of the term for which the member was appointed. A	3675
vacancy in the office of a member shall be filled by the governor,	3676
with the advice and consent of the senate. A member appointed to	3677
fill a vacancy occurring prior to the expiration of the term for	3678
which the member's predecessor was appointed shall hold office for	3679
the remainder of that term. A member shall continue in office	3680
subsequent to the expiration date of the member's term until the	3681
member's successor takes office or until a period of sixty days	3682
has elapsed, whichever occurs first.	3683

The council shall select from among its members a	3684
chairperson, a vice-chairperson, and a secretary. All members are	3685
entitled to their actual and necessary expenses incurred in the	3686
performance of their duties as members, payable from the	3687
appropriations for the division.	3688

The governor may remove any member for inefficiency, neglect	3689
of duty, or malfeasance in office.	3690

The council shall hold at least one regular meeting in each	3691
quarter of a calendar year and shall keep a record of its	3692
proceedings. Special meetings may be called by the chairperson and	3693
shall be called by the chairperson upon receipt of a written	3694
request signed by two or more members of the council. A written	3695
notice of the time and place of each meeting shall be sent to each	3696
member of the council. Five members constitute a quorum, and no	3697
action of the council is valid unless five members concur.	3698

The council, when requested by the chief of the division of	3699
mineral resources management, shall consult with and advise the	3700
chief and perform other duties that may be lawfully delegated to	3701
it by the chief. The council may participate in hearings held by	3702
the chief under this chapter and has powers of approval as	3703
provided in sectionssection 1509.24 and 1509.25 of the Revised	3704
Code. The council shall conduct the activities required, and	3705
exercise the authority granted, under Chapter 1510. of the Revised	3706
Code.	3707

The council, upon receiving a request from the chairperson of	3708
the oil and gas commission under division (C) of section 1509.35	3709
of the Revised Code, immediately shall prepare and provide to the	3710
chairperson a list of its members who may serve as temporary	3711
members of the oil and gas commission as provided in that	3712
division.	3713

Sec. 1509.50. In addition to paying the applicable taxes	3714
levied on the severance of oil and gas under section 5749.02 of	3715
the Revised Code, an owner shall pay an oil and gas regulatory	3716
cost recovery assessment of ten cents per barrel of oil or	3717
one-half cent per one thousand cubic feet of natural gas, as	3718
applicable, that is sold from all of the owner's wells located in	3719
this state. The owner shall collect from each person who has a	3720
revenue interest in a well of the owner that person's pro rata	3721
share of the assessment.	3722

The minimum amount of the assessment for every quarterly	3723
period, which periods are specified in section 5749.06 of the	3724
Revised Code, shall be either the amount of fifteen dollars	3725
multiplied by the total number of the owner's wells or the amount	3726
of the owner's severance taxes levied under section 5749.02 of the	3727
Revised Code plus the oil and gas regulatory cost recovery	3728
assessment imposed by this section, whichever is greater. An owner	3729
shall pay the assessment at the time and using the procedures that	3730
are established in section 5749.06 of the Revised Code for the	3731
collection of the taxes levied on the severance of oil and gas	3732
under section 5749.02 of the Revised Code. All money collected	3733
pursuant to this section shall be deposited in the state treasury	3734
to the credit of the oil and gas well fund created in section	3735
1509.02 of the Revised Code.	3736

The oil and gas regulatory cost recovery assessment imposed	3737
by this section shall be treated the same and equivalent for all	3738
purposes as the taxes levied on the severance of oil and gas under	3739
section 5749.02 of the Revised Code. However, the assessment	3740
imposed by this section is not a tax under Chapter 5749. of the	3741
Revised Code.	3742

Sec. 1509.99.  (A) Whoever violates sections 1509.01 to	3743
1509.31 of the Revised Code or any rules adopted or orders or	3744
terms or conditions of a permit issued pursuant to these sections	3745
for which no specific penalty is provided in this section shall be	3746
fined not less than one hundred nor more than one thousand dollars	3747
for a first offense; for each subsequent offense suchthe person	3748
shall be fined not less than two hundred nor more than two	3749
thousand dollars.	3750

(B) Whoever violates section 1509.221 of the Revised Code or	3751
any rules adopted or orders or terms or conditions of a permit	3752
issued thereunder shall be fined not more than five thousand	3753
dollars for each day of violation.	3754

(C) Whoever knowingly violates section 1509.072, division	3755
(A), (B), or (D) of section 1509.22, division (A)(1) or (C) of	3756
section 1509.222, or division (A) or (D) of section 1509.223 of	3757
the Revised Code or any rules adopted or orders issued under	3758
division (C) of section 1509.22 or rules adopted or orders or	3759
terms or conditions of a registration certificate issued under	3760
division (E) of section 1509.222 of the Revised Code shall be	3761
fined ten thousand dollars or imprisoned for six months, or both	3762
for a first offense; for each subsequent offense suchthe person	3763
shall be fined twenty thousand dollars or imprisoned for two	3764
years, or both. Whoever negligently violates suchthose divisions,	3765
sections, rules, orders, or terms or conditions of a registration	3766
certificate shall be fined not more than five thousand dollars.	3767

(D) Whoever violates division (C) of section 1509.223 of the	3768
Revised Code shall be fined not more than five hundred dollars for	3769
a first offense nor more than one thousand dollars for a	3770
subsequent offense.	3771

(E) The prosecuting attorney of the county in which the	3772
offense was committed or the attorney general may prosecute an	3773
action under this section.	3774

Sec. 1565.07.  The superintendent in charge of a mine shall	3775
direct the mine foreperson in such manner as is necessary to	3776
secure compliance with this chapter and Chapters 1561., 1563., and	3777
1567. and sectionssection 1509.18 and 1509.19 of the Revised	3778
Code. The superintendent may act as mine foreperson, but if the	3779
superintendent does so act regularly, the superintendent shall	3780
obtain a certificate from the chief of the division of mineral	3781
resources management in the same manner as the certification of	3782
mine foreperson is obtained.	3783

A person designated as a superintendent of an underground	3784
coal mine after January 1, 1977, shall, within six months after	3785
being so designated, demonstrate to the chief that the person has	3786
knowledge of the mining laws of this state governing the operation	3787
of underground coal mines either by presenting evidence that the	3788
person has passed a mine foreperson examination given by the chief	3789
or an examination given by the chief concerning the laws of this	3790
state governing the operation of underground coal mines.	3791

No person shall refuse or neglect to comply with this	3792
section.	3793

Sec. 1565.13.  In case of an injury to person or property,	3794
occasioned by a violation of this chapter and Chapters 1561.,	3795
1563., and 1567., and sectionssection 1509.18 and 1509.19 of the	3796
Revised Code, or any failure to comply with suchthose chapters or	3797
sectionsthat section, by any operator of a mine, a right of	3798
action shall accrue to the person injured, for any direct damage	3799
hethe person injured has sustained thereby. In case of loss of	3800
life by reason of such failure or neglect, a right of action shall	3801
accrue to the widow, and children, or if there are none, then to	3802
the parents and next of kin, of the person whose death was so	3803
caused, for like recovery of damages for the injury they have	3804
sustained. Any operator of a mine who has complied with Chapter	3805
4123. of the Revised Code, is exempt as provided in section	3806
4123.74 of the Revised Code, and not liable for damages at common	3807
law or by statute for injury or death of any employee.	3808

Sec. 1571.05.  (A) Whenever any part of a gas storage	3809
reservoir or any part of its protective area underlies any part of	3810
a coal mine, or is, or within nine months is expected or intended	3811
to be, within two thousand linear feet of the boundary of a coal	3812
mine that is operating in a coal seam any part of which extends	3813
over any part of the storage reservoir or its protective area, the	3814
operator of suchthe reservoir, if the reservoir operator or some	3815
other reservoir operator has not theretofore done so, shall:	3816

(1) Use every known method that is reasonable under the	3817
circumstance for discovering and locating all wells drilled within	3818
the area of suchthe reservoir or its protective area that	3819
underlie any part of suchthe coal mine or its protective area;	3820

(2) Plug or recondition all known wells drilled within the	3821
area of suchthe reservoir or its protective area that underlie	3822
any part of suchthe coal mine.	3823

(B) Whenever an operator of a gas storage reservoir is	3824
notified by the operator of a coal mine, as provided in division	3825
(B) of section 1571.03 of the Revised Code, that suchthe coal	3826
mine operator believes that part of the boundary of suchthe mine	3827
is within two thousand linear feet of a well that is drilled	3828
through the horizon of suchthe coal mine and into or through the	3829
storage stratum or strata of suchthe reservoir within the	3830
boundary of suchthe reservoir or within its protective area, such	3831
the reservoir operator shall plug or recondition suchthe well as	3832
in this section prescribed, unless it is agreed in a conference or	3833
is ordered by the chief of the division of mineral resources	3834
management after a hearing, as provided in section 1571.10 of the	3835
Revised Code, that the well referred to in the notice is not such	3836
a well as is described in division (B) of section 1571.03 of the	3837
Revised Code.	3838

Whenever an operator of a gas storage reservoir is notified	3839
by the operator of a coal mine as provided in division (C) or (D)	3840
of section 1571.03 of the Revised Code, that part of the boundary	3841
of suchthe mine is, or within nine months is intended or expected	3842
to be, within two thousand linear feet of a well that is drilled	3843
through the horizon of suchthe mine and into or through the	3844
storage stratum or strata of suchthe reservoir within the	3845
boundary of suchthe reservoir or within its protective area, such	3846
the reservoir operator shall plug or recondition suchthe well as	3847
in this section prescribed.	3848

Whenever the operator of a coal mine considers that the use	3849
of a well such as in this section described, if used for injecting	3850
gas into, or storing gas in, or removing gas from, a gas storage	3851
reservoir, would be hazardous to the safety of persons or property	3852
on or in the vicinity of the premises of suchthe coal mine or	3853
suchthe reservoir or well, the coal mine operator may file with	3854
the division objections to the use of suchthe well for such	3855
purposes, and a request that a conference be held as provided in	3856
section 1571.10 of the Revised Code, to discuss and endeavor to	3857
resolve by mutual agreement whether or not suchthe well shall or	3858
shall not be used for such purposes, and whether or not suchthe	3859
well shall be reconditioned, inactivated, or plugged. SuchThe	3860
request shall set forth the mine operator's reasons for such	3861
objections. If no approved agreement is reached in suchthe	3862
conference, the gas storage well inspector shall within ten days	3863
after the termination of suchthe conference, file with the chief	3864
a request that the chief hear and determine the matters considered	3865
at the conference as provided in section 1571.10 of the Revised	3866
Code. Upon conclusion of the hearing, the chief shall find and	3867
determine whether or not the safety of persons or of the property	3868
on or in the vicinity of the premises of suchthe coal mine, or	3869
suchthe reservoir, or suchthe well requires that suchthe well	3870
be reconditioned, inactivated, or plugged, and shall make an	3871
order consistent with suchthat determination, provided that the	3872
chief shall not order a well plugged unless the chief first finds	3873
that there is underground leakage of gas therefrom.	3874

The plugging or reconditioning of each well described in a	3875
notice from a coal mine operator to a reservoir operator as	3876
provided in division (B) of section 1571.03 of the Revised Code,	3877
which must be plugged or reconditioned, shall be completed within	3878
such time as the gas storage well inspector may fix in the case of	3879
each such well. The plugging or reconditioning of each well	3880
described in a notice from a coal mine operator to a reservoir	3881
operator as provided in division (C) of section 1571.03 of the	3882
Revised Code, which must be plugged or reconditioned, shall be	3883
completed by the time suchthe well, by reason of the extension of	3884
the boundary of suchthe coal mine, is within two thousand linear	3885
feet of any part of the boundary of suchthe mine. The plugging or	3886
reconditioning of each well described in a notice from a coal mine	3887
operator to a reservoir operator, as provided in division (D) of	3888
section 1571.03 of the Revised Code, which must be plugged or	3889
reconditioned, shall be completed by the time suchthe well, by	3890
reason of the opening of suchthe new mine, is within two thousand	3891
linear feet of any part of the boundary of suchthe new mine. A	3892
reservoir operator who is required to complete the plugging or	3893
reconditioning of a well within a period of time fixed as in this	3894
division prescribed, may prior to the end of suchthat period of	3895
time, notify the division and the mine operator from whom the	3896
reservoir operator received a notice as provided in division (B),	3897
(C), or (D) of section 1571.03 of the Revised Code, in writing by	3898
registered mail, that the completion of the plugging or	3899
reconditioning of the well referred to in suchthe notice will be	3900
delayed beyond the end of the period of time fixed therefor as in	3901
this section provided, and that the reservoir operator requests	3902
that a conference be held for the purpose of endeavoring to reach	3903
an agreement establishing a date subsequent to the end of such	3904
that period of time, on or before which suchthe reservoir	3905
operator may complete suchthe plugging or reconditioning without	3906
incurring any penalties for failure to do so as provided in this	3907
chapter. If such a reservoir operator sends to such a mine	3908
operator and to the division a notice and request for a	3909
conference as in this division provided, suchthe reservoir	3910
operator shall not incur any penalties for failure to complete the	3911
plugging or reconditioning of suchthe well within the period of	3912
time fixed as in this division prescribed, unless suchthe	3913
reservoir operator fails to complete the plugging or	3914
reconditioning of suchthe well within the period of time fixed	3915
by an approved agreement reached in suchthe conference, or fixed	3916
by an order by the chief upon a hearing held in the matter in the	3917
event of failure to reach an approved agreement in the conference.	3918

Whenever, in compliance with this division, a well is to be	3919
plugged by a reservoir operator, suchthe operator shall give to	3920
the division notice thereof, as many days in advance as will be	3921
necessary for the gas storage well inspector or a deputy mine	3922
inspector to be present at suchthe plugging. SuchThe	3923
notification shall be made on blanks furnished by the division and	3924
shall show the following information:	3925

(1) Name and address of the applicant;

3926

(2) The location of the well identified by section or lot	3927
number, city or village, and township and county;	3928

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

3929

(C) The operator shall give written notice at the same time	3930
to the owner of the land upon which the well is located, the	3931
owners or agents of the adjoining land, and adjoining well owners	3932
or agents of the operator's intention to abandon the well, and of	3933
the time when the operator will be prepared to commence plugging	3934
and filling the same. In addition to giving such notices, suchthe	3935
reservoir operator shall also at the same time send a copy of such	3936
the notice by registered mail to the coal mine operator, if any,	3937
who sent to the reservoir operator the notice as provided in	3938
division (B), (C), or (D) of section 1571.03 of the Revised Code,	3939
in order that suchthe coal mine operator or the coal mine	3940
operator's designated representative, may attend and observe the	3941
manner in which suchthe plugging of suchthe well is done.	3942

If the reservoir operator plugs suchthe well without an	3943
inspector from the division being present to supervise the	3944
plugging, the reservoir operator shall send to the division and to	3945
the coal mine operator a copy of the report of the plugging of	3946
suchthe well, including in suchthe report:	3947

(1) The date of abandonment;

3948

(2) The name of the owner or operator of suchthe well at the	3949
time of abandonment and the well owner's or operator's post office	3950
address;	3951

(3) The location of suchthe well as to township and county	3952
and the name of the owner of the surface upon which suchthe well	3953
is drilled, with the address thereof;	3954

(4) The date of the permit to drill;

3955

(5) The date when drilled;

3956

(6) Whether suchthe well has been mapped;

3957

(7) The depth of the well;

3958

(8) The depth of the top of the sand to which the well was	3959
drilled;	3960

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

3961

(10) A detailed report as to how suchthe well was plugged,	3962
giving in particular the manner in which the coal and various	3963
sands were plugged, and the date of the plugging of suchthe well,	3964
including therein the names of those who witnessed the plugging of	3965
the well.	3966

SuchThe report shall be signed by the operator or the	3967
operator's agent who plugged suchthe well and verified by the	3968
oath of the party so signing. For the purposes of this section, a	3969
deputy mine inspector may take acknowledgements and administer	3970
oaths to the parties signing suchthe report.	3971

Whenever, in compliance with this division, a well is to be	3972
reconditioned by a reservoir operator, suchthe operator shall	3973
give to the division notice thereof as many days before suchthe	3974
reconditioning is begun as will be necessary for the gas storage	3975
well inspector, or a deputy mine inspector, to be present at such	3976
the reconditioning. No well shall be reconditioned if an inspector	3977
of the division is not present unless permission to do so has been	3978
granted by the chief. The reservoir operator, at the time of	3979
giving notice to the division as in this section required, also	3980
shall send a copy of suchthe notice by registered mail to the	3981
coal mine operator, if any, who sent to the reservoir operator the	3982
notice as provided in division (B), (C), or (D) of section 1571.03	3983
of the Revised Code, in order that suchthe coal mine operator or	3984
the coal mine operator's designated representative, may attend and	3985
observe the manner in which suchthe reconditioning of suchthe	3986
well is done.	3987

If the reservoir operator reconditions suchthe well when no	3988
inspector of the division is present to supervise the	3989
reconditioning, the reservoir operator shall make written report	3990
to the division describing the manner in which suchthe	3991
reconditioning was done, and shall send to the coal mine operator	3992
a copy of suchthe report by registered mail.	3993

(D) Wells that are required by this section to be plugged	3994
shall be plugged in the manner specified in sections 1509.13 to	3995
1509.191509.17 of the Revised Code, and the operator shall give	3996
the notifications and reports required by divisions (B) and (C) of	3997
this section. No such well shall be plugged or abandoned without	3998
the written approval of the division, and no such well shall be	3999
mudded, plugged, or abandoned without the gas storage well	4000
inspector or a deputy mine inspector present unless written	4001
permission has been granted by the chief or the gas storage well	4002
inspector. If such a well has been plugged prior to the time	4003
plugging thereof is required by this section, and, on the basis of	4004
the data, information, and other evidence available it is	4005
determined that suchthe plugging was done in the manner required	4006
by this section, or was done in accordance with statutes	4007
prescribing the manner of plugging wells in effect at the time	4008
suchthe plugging was done, and that there is no evidence of	4009
leakage of gas from suchthe well either at or below the surface,	4010
and that suchthe plugging is sufficiently effective to prevent	4011
the leakage of gas from suchthe well, the obligations imposed	4012
upon suchthe reservoir operator by this section as to plugging	4013
the well, shall be considered fully satisfied. The operator of a	4014
coal mine any part of the boundary of which is, or within nine	4015
months is expected or intended to be, within two thousand linear	4016
feet of suchthe well, may at any time raise a question as to	4017
whether the plugging of suchthe well is sufficiently effective to	4018
prevent the leakage of gas therefrom, and the issue so made shall	4019
be determined by a conference or hearing as provided in section	4020
1571.10 of the Revised Code.	4021

(E) Wells that are to be reconditioned as required by this	4022
section shall be, or shall be made to be:	4023

(1) Cased in accordance with the statutes of this state in	4024
effect at the time suchthe wells were drilled, with suchthe	4025
casing being, or made to be, sufficiently effective in that there	4026
is no evidence of any leakage of gas therefrom;	4027

(2) Equipped with a producing string and well head composed	4028
of new pipe, or pipe as good as new, and fittings designed to	4029
operate with safety and to contain the stored gas at maximum	4030
pressures contemplated.	4031

When a well that is to be reconditioned as required by this	4032
section, has been reconditioned for use in the operation of such	4033
the reservoir prior to the time prescribed in this section, and on	4034
the basis of the data, information, and other evidence available	4035
it is determined that at the time suchthe well was so	4036
reconditioned the requirements prescribed in this division were	4037
met, and that there is no evidence of underground leakage of gas	4038
from suchthe well, and that suchthe reconditioning is	4039
sufficiently effective to prevent underground leakage from the	4040
well, the obligations imposed upon suchthe reservoir operator by	4041
this section as to reconditioning suchthe well shall be	4042
considered fully satisfied. Any operator of a coal mine any part	4043
of the boundary of which is, or within nine months is expected or	4044
intended to be, within two thousand linear feet of suchthe well,	4045
may at any time raise a question as to whether the reconditioning	4046
of suchthe well is sufficiently effective to prevent underground	4047
leakage of gas therefrom, and the issue so made shall be	4048
determined by a conference or hearing as provided in section	4049
1571.10 of the Revised Code.	4050

If the gas storage well inspector at any time finds that a	4051
well that is drilled through the horizon of a coal mine and into	4052
or through the storage stratum or strata of a reservoir within the	4053
boundary of suchthe reservoir or within its protective area, is	4054
located within the boundary of suchthe coal mine or within two	4055
thousand linear feet of suchthe mine boundary, and was drilled	4056
prior to the time the statutes of this state required that wells	4057
be cased, and that suchthe well fails to meet the casing and	4058
equipping requirements prescribed in this division, the gas	4059
storage well inspector shall promptly notify the operator of such	4060
the reservoir thereof in writing, and suchthe reservoir operator	4061
upon receipt of suchthe notice, shall promptly recondition such	4062
the well in the manner prescribed in this division for	4063
reconditioning wells, unless, in a conference or hearing as	4064
provided in section 1571.10 of the Revised Code, a different	4065
course of action is agreed upon or ordered.	4066

(F)(1) When a well within the boundary of a gas storage	4067
reservoir or within suchthe reservoir's protective area	4068
penetrates the storage stratum or strata of suchthe reservoir,	4069
but does not penetrate the coal seam within the boundary of a coal	4070
mine, the gas storage well inspector may, upon application of the	4071
operator of suchthe storage reservoir, exempt suchthe well from	4072
the requirements of this section. Either party affected by such	4073
the action of the gas storage well inspector may request a	4074
conference and hearing with respect to suchthe exemption.	4075

(2) When a well located within the boundary of a storage	4076
reservoir or a reservoir's protective area is a producing well in	4077
a stratum above or below the storage stratum, the obligations	4078
imposed by this section shall not begin until suchthe well ceases	4079
to be a producing well.	4080

(G) When retreat mining reaches a point in a coal mine when	4081
the operator of suchthe mine expects that within ninety days	4082
retreat work will be at the location of a pillar surrounding an	4083
active storage reservoir well, the operator of suchthe mine shall	4084
promptly send by registered mail notice to that effect to the	4085
operator of suchthe reservoir. Thereupon the operators may by	4086
agreement determine whether it is necessary or advisable to	4087
temporarily inactivate the well. If inactivated, the well shall	4088
not be reactivated until a reasonable period of time has elapsed,	4089
such period of time to be determined by agreement by the	4090
operators. In the event that the parties cannot agree upon either	4091
of the foregoing matters, suchthe question shall be submitted to	4092
the gas storage well inspector for a conference in accordance with	4093
section 1571.10 of the Revised Code.	4094

(H)(1) The provisions of this section that require the	4095
plugging or reconditioning of wells shall not apply to such wells	4096
as are used to inject gas into, store gas in, or remove gas from,	4097
a gas storage reservoir when the sole purpose of suchthe	4098
injection, storage, or removal, is testing. The operator of a gas	4099
storage reservoir who injects gas into, stores gas in, or removes	4100
gas from, a reservoir for the sole purpose of testing, shall be	4101
subject to all other provisions of this chapter that are	4102
applicable to operators of reservoirs.	4103

(2) If the injection of gas into, or storage of gas in, a gas	4104
storage reservoir any part of which, or of the protective area of	4105
which, is within the boundary of a coal mine, is begun after	4106
September 9, 1957, and if suchthe injection or storage of gas is	4107
for the sole purpose of testing, the operator of suchthe	4108
reservoir shall send by registered mail to the operator of such	4109
the coal mine and to the division at least sixty days' notice of	4110
the date upon which suchthe testing will be begun.	4111

If at any time within the period of time during which testing	4112
of a reservoir is in progress, any part of suchthe reservoir or	4113
of its protective area comes within any part of the boundary of a	4114
coal mine, the operator of suchthe reservoir shall promptly send	4115
notice to that effect by registered mail to the operator of such	4116
the mine and to the division.	4117

(3) Any coal mine operator who receives a notice as provided	4118
for in division (H)(2) of this section, may within thirty days of	4119
the receipt thereof, file with the division objections to suchthe	4120
testing. The gas storage well inspector also may, within the time	4121
within which a coal mine operator may file suchan objection,	4122
place in the files of the division objections to suchthe testing.	4123
The reservoir operator shall comply throughout the period of the	4124
testing operations with all conditions and requirements agreed	4125
upon and approved in the conference on such objections conducted	4126
as provided in section 1571.10 of the Revised Code, or in an order	4127
made by the chief following a hearing in the matter as provided in	4128
section 1571.10 of the Revised Code. If in complying with suchthe	4129
agreement or order either the reservoir operator or the coal mine	4130
operator encounters or discovers conditions that were not known to	4131
exist at the time of suchthe conference or hearing and that	4132
materially affect suchthe agreement or order, or the ability of	4133
the reservoir operator to comply therewith, either operator may	4134
apply for a rehearing or modification of the order.	4135

(I) In addition to complying with all other provisions of	4136
this chapter and any lawful orders issued thereunder, the operator	4137
of each gas storage reservoir shall keep all wells drilled into or	4138
through the storage stratum or strata within the boundary of the	4139
operator's reservoir or within the reservoir's protective area in	4140
such condition, and operate the same in such manner, as to prevent	4141
the escape of gas therefrom into any coal mine, and shall operate	4142
and maintain suchthe storage reservoir and its facilities in such	4143
manner and at such pressures as will prevent gas from escaping	4144
from suchthe reservoir or its facilities into any coal mine.	4145

Sec. 5749.06.  Each severer liable for the tax imposed by	4146
section 5749.02 of the Revised Code shall make and file returns	4147
with the tax commissioner in the prescribed form and as of the	4148
prescribed times, computing and reflecting therein the tax as	4149
required by this chapter and the oil and gas regulatory cost	4150
recovery assessment imposed by section 1509.50 of the Revised	4151
Code.	4152

The returns shall be filed for every quarterly period, which	4153
periods shall end on the thirty-first of March, the thirtieth day	4154
of June, the thirtieth day of September, and the thirty-first day	4155
of December of each year, as required by this section, unless a	4156
different return period is prescribed for a taxpayer by the tax	4157
commissioner.	4158

A separate return shall be filed for each calendar quarterly	4159
period, or other period, or any part thereof, during which the	4160
severer holds a license as provided by section 5749.04 of the	4161
Revised Code, or is required to hold suchthe license, and such	4162
the return shall be filed within forty-five days after the last	4163
day of each such calendar month, or other period, or any part	4164
thereof, for which suchthe return is required and shall include	4165
remittance payable to the treasurer of state of the amount of tax	4166
due. All such returns shall contain such information as the	4167
commissioner may require to fairly administer the tax.	4168

All returns shall be signed by the severer, shall contain the	4169
full and complete information requested, and shall be made under	4170
penalty of perjury.	4171

If the commissioner believes that quarterly payments of tax	4172
would result in a delay whichthat might jeopardize the collection	4173
of such tax payments, the commissioner may order that such	4174
payments be made weekly, or more frequently if necessary, such	4175
payments to be made not later than seven days following the close	4176
of the period for which the jeopardy payment is required. Such an	4177
order shall be delivered to the taxpayer personally or by	4178
certified mail and shall remain in effect until the commissioner	4179
notifies the taxpayer to the contrary.	4180

Upon good cause the commissioner may extend the period for	4181
filing any notice or return required to be filed under this	4182
section, and may remit all or a part of penalties that may become	4183
due under this chapter.	4184

Any tax not paid by the day the tax is due shall bear	4185
interest computed at the rate per annum prescribed by section	4186
5703.47 of the Revised Code on that amount of tax due from the day	4187
that suchthe amount was originally required to be paid to the day	4188
of actual payment or to the day an assessment was issued under	4189
section 5749.07 or 5749.10 of the Revised Code, whichever occurs	4190
first.	4191

The severer shall make all payments payable to the treasurer	4192
of state. AllExcept for the amounts received from the oil and gas	4193
regulatory cost recovery assessment imposed by section 1509.50 of	4194
the Revised Code, all amounts that the tax commissioner receives	4195
under this section shall be deemed to be revenue from taxes	4196
imposed under this chapter. The tax commissioner shall immediately	4197
forward to the treasurer of state all amounts received under this	4198
section.	4199

Section 2. That existing sections 1509.01, 1509.02, 1509.03,	4200
1509.04, 1509.05, 1509.06, 1509.061, 1509.07, 1509.071, 1509.072,	4201
1509.08, 1509.09, 1509.10, 1509.11, 1509.12, 1509.13, 1509.14,	4202
1509.15, 1509.17, 1509.18, 1509.20, 1509.21, 1509.22, 1509.221,	4203
1509.222, 1509.223, 1509.224, 1509.225, 1509.23, 1509.24, 1509.26,	4204
1509.30, 1509.31, 1509.32, 1509.33, 1509.35, 1509.36, 1509.38,	4205
1509.99, 1565.07, 1565.13, 1571.05, and 5749.06 and sections	4206
1509.226, 1509.25, 1509.27, 1509.29, 1509.40, and 1509.41 of the	4207
Revised Code are hereby repealed.	4208

Section 3. (A) The Technical advisory Council on Oil and Gas	4209
created in section 1509.38 of the Revised Code as that section	4210
existed prior to its amendment by this act is abolished.	4211

(B) Not later than ninety days after the effective date of	4212
this section, the Governor, with the advice and consent of the	4213
Senate, shall appoint the initial members of the Technical	4214
Advisory Council on Oil and Gas that is created in section 1509.38	4215
of the Revised Code as amended by this act. In doing so, the	4216
Governor shall provide for staggered terms of office for members	4217
of the Council.	4218

Section 4. (A) The members who are serving on the Oil and Gas	4219
Commission created in section 1509.35 of the Revised Code on the	4220
effective date of the amendment by this act to that section shall	4221
hold office until their terms expire unless they are removed under	4222
division (F) of that section. Any person appointed to the	4223
Commission after the effective date of the amendment to that	4224
section shall be appointed for a term of three years as specified	4225
in that amendment.	4226

(B) Not later than ninety days after the effective date of	4227
this section, the Governor shall appoint four additional members	4228
to the Oil and Gas Commission in accordance with the amendment by	4229
this act to section 1509.35 of the Revised Code. Of the additional	4230
members appointed by the Governor, one member's term shall expire	4231
in 2011, one member's term shall expire in 2012, and two members'	4232
terms shall expire in 2013.	4233