Bill Text: OH SB212 | 2011-2012 | 129th General Assembly | Introduced

---

Bill Title: To establish requirements governing well stimulation, brine disposal, and water that is used in the drilling and operation of oil and gas wells on state land, including a requirement that oil and gas permittees pay a five per cent overriding royalty for each well that is stimulated.

Spectrum: Slight Partisan Bill (Democrat 3-1)

Status: (Introduced - Dead) 2011-09-06 - To Agriculture, Environment & Natural Resources [SB212 Detail]

Download: Ohio-2011-SB212-Introduced.html

---

As Introduced

129th General Assembly Regular Session 2011-2012

S. B. No. 212

Senator Skindell 

Cosponsors: Senators Grendell, Tavares, Brown 

---

A BILL

To amend section 1509.74 and to enact sections

1

1509.031, 1509.191, 1509.192, 1509.227, and

2

6111.70 of the Revised Code to establish

3

requirements governing well stimulation, brine

4

disposal, and water that is used in the drilling

5

and operation of oil and gas wells on state land,

6

including a requirement that oil and gas

7

permittees pay a five per cent overriding royalty

8

for each well that is stimulated.

9

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

Section 1. That section 1509.74 be amended and sections	10
1509.031, 1509.191, 1509.192, 1509.227, and 6111.70 of the Revised	11
Code be enacted to read as follows:	12

Sec. 1509.031.  The director of environmental protection or	13
the director's designee and the health commissioner of the health	14
district in which a well is located or the commissioner's designee	15
may enter at any time on lands, public or private, to sample and	16
analyze fluids used to stimulate a well.	17

Sec. 1509.191.  Not later than ten days before an owner	18
commences drilling a well, the owner shall submit to the	19
environmental protection agency and to the board of health of the	20
health district in which the well is or is to be located a	21
complete listing of all of the chemicals and other substances that	22
will be used to stimulate the well. The list shall be submitted on	23
a form or in a manner prescribed by the chief of the division of	24
oil and gas resources management.	25

Sec. 1509.192.  On and after the effective date of this	26
section, if well stimulation is used in a well, the person who has	27
been issued a permit under section 1509.05 of the Revised Code for	28
the well shall pay a five per cent overriding royalty to the	29
director of environmental protection who shall deposit the money	30
from the royalty in the state treasury to the credit of the clean	31
water restoration fund created in section 6111.70 of the Revised	32
Code. The director shall adopt rules in accordance with Chapter	33
119. of the Revised Code establishing procedures and requirements	34
that are necessary for the implementation of this section.	35

Sec. 1509.227.  An owner that commences drilling of a well	36
shall submit to the chief of the division of oil and gas resources	37
management documentation identifying where and how the owner will	38
dispose of brine or other waste substances resulting from,	39
obtained from, or produced from oil and gas production at the	40
well. The chief shall establish appropriate procedures for the	41
purpose of implementing this section.	42

Sec. 1509.74. Not later than two hundred seventy days after	43
the effective date of this sectionSeptember 30, 2011, the oil and	44
gas leasing commission shall adopt rules in accordance with	45
Chapter 119. of the Revised Code establishing all of the	46
following:	47

(A) The form of and the information to be included in	48
nominations that are submitted under section 1509.73 of the	49
Revised Code;	50

(B) Procedures for the submission of nominations to the	51
commission and the amount of nomination fees to be charged. The	52
rules shall require that if a person who has paid a nomination fee	53
does not enter into a lease regarding the parcel of land that the	54
person nominated, the fee shall be refunded to the person, and, if	55
applicable, the person that enters into the lease shall pay the	56
nomination fee. In addition, the rules shall provide that a state	57
agency is exempt from nomination fees and that a person who enters	58
into a lease regarding a parcel of land nominated by a state	59
agency shall pay the nomination fee.	60

(C) Factors that the commission may consider when determining	61
whether to approve or disapprove a nomination submitted under	62
section 1509.73 of the Revised Code;	63

(D) Procedures and requirements for the submission of bids	64
for a lease under section 1509.73 of the Revised Code;	65

(E) The amount of bid fees to be charged for the submission	66
of bids to enter into leases under section 1509.73 of the Revised	67
Code;	68

(F) A standard lease form that is consistent with the	69
practices of the oil and natural gas industries and that contains	70
at least a one-eighth landowner royalty, which standard lease form	71
shall be used by a state agency for leases entered into under	72
section 1509.73 of the Revised Code;	73

(G) A requirement that, prior to drilling a well in	74
accordance with a lease entered into under section 1509.73 of the	75
Revised Code and prior to conducting well stimulation of such a	76
well, the person who has entered into the lease conduct baseline	77
testing of surface water and ground water for quantity and quality	78
in the leased area;	79

(H) A requirement that a person who has entered into a lease	80
under section 1509.73 of the Revised Code recycle, capture, or	81
treat all water used by the person when drilling and operating a	82
well under the lease. The rules shall require the person to	83
document the quantity of water used and to submit periodic reports	84
identifying all chemicals used in well stimulation fluid during	85
the term of the lease.	86

(I) Any other procedures and requirements that the commission	87
determines necessary to implement sections 1509.70 to 1509.77 of	88
the Revised Code.	89

Sec. 6111.70.  There is hereby created in the state treasury	90
the clean water restoration fund consisting of money credited to	91
the fund under section 1509.192 of the Revised Code. The director	92
of environmental protection shall use money in the fund to	93
remediate and repair any water well or ground water adversely	94
affected by hydraulic fracturing used in an oil or natural gas	95
well.	96

Section 2. That existing section 1509.74 of the Revised Code	97
is hereby repealed.	98