SB 219 — Revise the law governing oil and gas wells

(2) On and after the effective date of rules adopted under section 155.34 of the Revised Code, any person or state agency that is interested in leasing a formation within a parcel of land that is owned or controlled by a state agency for the exploration for and the development and production of oil or natural gas may submit to the oil and gas land management commission a nomination that shall include all of the following:

(a) The name of the person making the nomination and the person's address, telephone number, and email address;

(b) An identification of the formation and parcel of land proposed to be leased that specifies all of the following:

(i) The percentage of the interest owned or controlled by the state agency, and whether that interest is divided, undivided, or partial;

(ii) The source deed by book and page numbers, including the description and acreage of the parcel and an identification of the county, section, township, and range in which the parcel is located;

(iii) A plat map depicting the area in which the parcel is located.

(c) If the person making the nomination is not a state agency, a nomination fee of one hundred fifty dollars;

(d) The proposed lease bonus that applies to the nomination and any additional proposed gross landowner royalty that applies to the nomination that is in addition to the amount required under division (A)(1)(b) of section 155.34 of the Revised Code;

(e) If the person making the nomination is not a state agency, proof of both of the following:

(i) That the person has obtained the insurance and financial assurance required under section 1509.07 of the Revised Code;

(ii) That the person has registered with and obtained an identification number from the division of oil and gas resources management under section 1509.31 of the Revised Code.

(3) In order to encourage the submission of nominations and the responsible and reasonable Sub.

219 Page136th 3G.A. As Passed by the Senate prior to the effective date of this amendment.

Thedevelopment personof 49the seekingstate's tonatural leaseresources, only the formationinformation shallsubmitted submitunder todivision the(A)(2)(b) stateof agencythis 50section themay proofbe describeddisclosed into divisionsthe (D)(5)(a)public anduntil (b)a ofperson thisis 51selected sectionunder beforedivision entering(F) intoof thethis lease.section.

OnUntil anda afterperson theis 52selected effective date of the rules adopted under sectiondivision 155.34(F) of thethis 53section, Revisedall Code,other ainformation formationsubmitted withinunder adivision parcel(A)(2) of landthis thatsection is ownedconfidential, 54shall ornot controlled by a state agency may be leaseddisclosed forby the 55commission, exploration for and developmentis andnot productiona ofpublic oilrecord orsubject naturalto 56inspection gasor onlycopying inunder accordancesection with149.43 divisions (A)(2) to (H) of thisthe 57Revised sectionCode. and those rules.

58(4) (2)When On and after the effective date of rules adopted under 59 section 155.34 of the Revised Code, any person or state agency 60 that is interested in leasing a formationnomination within a parcel of 61 land that is ownednot orsubmitted controlled by a state agencyagency, for the 62nomination explorationis for and the developmentopening andbid productionfor purposes of oildivision or(D) 63 natural gas may submit to the oil and gas land management 64 commission a nomination that shall include all of thethis following:section.

65However, (a) The name of the person makingsubmitting the nomination andmay thesupplement 66or person'samend address,that telephonebid number,by andproviding emailadditional address;information in accordance with that division.

67(B)(1) (b)Not Anless identificationthan thirty days, but not more than one hundred twenty days following the receipt of a nomination, the formationThe andcommission parcelshall ofconduct landa 68meeting proposedone or more meetings for the purpose of determining whether to beapprove leasedor thatdisapprove specifiesthe allnomination for the purpose of leasing a formation within the following:parcel of land that is identified in the nomination.

69In (i)making Theits percentagedecision ofto theapprove interest owned or controlleddisapprove bythe 70nomination, the statecommission agency,shall andconsider whetherall thatof interestthe isfollowing: divided, 71 undivided, or partial;

72(a) (ii) The sourceeconomic deedbenefits, byincluding bookthe andpotential pageincome numbers,from includingan 73oil theor descriptionnatural andgas acreageoperation, ofthat thewould parcelresult andif anthe identificationlease 74 of thea county,formation section,that township,is andthe rangesubject inof which the parcelnomination 75were isapproved; located;

76(b) (iii)Whether Athe platproposed mapoil depictingor gas operation is compatible with the areacurrent inuses whichof the parcel of land that is 77the Sub.subject of the nomination;

(c) The environmental impact that would result if the lease of a formation that is the subject of the nomination were approved;

(d) Any potential adverse geological impact that would result if the lease of a formation that is the subject of the nomination were approved;

(e) Any potential impact to visitors or users of a parcel of land that is the subject of the nomination;

(f) Any potential impact to the operations or equipment of a state agency that is a state university or college if the lease of a formation within a parcel of land owned or controlled by the university or college that is the subject of the nomination were executed;

(g) Any comments or objections to the nomination submitted to the commission by the state agency that owns or controls the parcel of land on which the proposed oil or natural gas operation would take place;

(h) Any comments or objections to the nomination submitted to the commission by residents of this state or other users of the parcel of land that is the subject of the nomination;

(i) Any special terms and conditions the state agency included in its comments or objections that the state agency believes are appropriate for the lease of the parcel of land because of specific conditions related to that parcel of land.

(2) The commission shall approve or disapprove a nomination not later than two calendar quarters ninety days following the receipt of the nomination.

The commission shall post notice of the Sub.

219 Page136th 4G.A. As Passed by the Senate located.

78commission's (c)decision Ifon the commission's web site and send notice of the decision by email and by certified mail to the person makingthat submitted the nomination isand notto athe state 79agency agency,that aowns nominationor feecontrols the formation within the parcel of oneland hundredthat fiftyis dollars;the subject of the nomination.

80(C) (d)Each Thecalendar proposedquarter, leasethe bonusThe thatcommission appliesshall proceed to theadvertise 81for nominationbids andfor anya additionallease proposedfor grossa landownerformation royaltywithin 82a thatparcel appliesof toland the nomination that iswas in addition to the amountsubject 83of requireda undernomination divisionapproved (A)(1)(b)during ofthe sectionprevious 155.34calendar ofquarterby the 84commission. Revised Code;

85The (e)commission Ifshall publish the personadvertisement makingon theits nominationweb issite notfor a stateperiod 86 agency, proof of bothtime ofestablished by the following:commission.

87The (i)advertisement Thatshall theinclude personall has obtained the insurance and 88 financial assurance required under section 1509.07 of the 89following: Revised Code;

90(1) (ii)An Thatidentification theof personeach hasformation registeredand withparcel andof obtainedland anproposed 91to identificationbe numberleased fromthat theincludes divisionall of oilthe andinformation gasspecified resourcesin 92division management(A)(2)(b) under section 1509.31 of thethis Revisedsection; Code.

93(2) (3)The Indeadline orderfor to encourage the submission of nominationsbids; 94 and the responsible and reasonable development of the state's 95 natural resources, only the information submitted under division 96 (A)(2)(b) of this section may be disclosed to the public until a 97 person is selected under division (F) of this section.

Until(3) aA 98statement personthat iseach selectedbid undermust divisioncontain (F)all of thisthe section,items allrequired other 99 information submitted under division (A)(2)(D) of this sectionsection; is 100 confidential, shall not be disclosed by the commission, and is 101 not a public record subject to inspection or copying under 102 section 149.43 of the Revised Code.

103 (4) WhenA statement that a nominationstandard islease notform submittedthat byis aconsistent statewith agency,the 104practices of the nominationoil isand natural gas industries and adopted by rule by the openingcommission bidwill be used for purposesthe lease of divisiona (D)formation 105within ofthe thisparcel section.of land;

However,(5) Any special terms and conditions that may apply to the personlease submittingbecause of specific conditions related to the nominationparcel 106of Sub.land;

(6) The amount of the bid fee that is required to be submitted with a bid;

(7) Any other information that the commission considers pertinent to the advertisement for bids.

(D) A person interested in leasing a formation within a parcel of land owned or controlled by a state agency for the exploration for and development and production of oil or natural gas may submit a bid to the commission on a parcel by parcel basis that contains all of the following:

(1) A bid fee of twenty-five dollars;

(2) The name of the person making the bid and the person's address, telephone number, and email address;

(3) An identification of the formation and parcel of land for which the bid is being submitted, including all of the information specified in division (A)(2)(b) of this section;

(4) The proposed lease bonus that applies to the bid and any additional proposed gross landowner royalty that applies to the bid that is in addition to the amount required under division (A) (1)(b) of section 155.34 of the Revised Code;

(5) Proof of both of the following:

(a) That the person has obtained the insurance and financial assurance required under section 1509.07 of the Revised Code;

(b) That the person has registered with and obtained an identification number from the division of oil and gas resources management under section 1509.31 of the Revised Code.

(6) Any other information that the person believes is relevant to the bid.

Sub.

219 Page136th 5G.A. As Passed by the Senate may supplement or amend that bid by providing additional 107 information in accordance with that division.

108(E) (B)(1)In Notorder lessto thanencourage thirtythe days,submission butof notbids moreand thanthe oneresponsible 109and hundredreasonable twentydevelopment daysof followingthe state's natural resources, the receiptinformation ofthat is contained in a nomination,bid thesubmitted 110to Thethe commission shallunder conductthis asection meetingis oneconfidential, orshall morenot meetingsbe fordisclosed 111by the purposecommission, ofand determiningis whethernot toa approvepublic orrecord disapprovesubject theto 112inspection nominationand forcopying theunder purposesection 149.43 of leasingthe aRevised formationCode withinuntil thea 113person parcelis ofselected landunder thatdivision is(F) identifiedof inthis thesection. nomination.

114The InNot makinglater itsthan decisionsixty todays approvefollowing ora disapprovenomination's approval, the 115commission nomination,shall select the commissionperson shallwho considersubmits allthe highest and best bid, taking into account the financial responsibility of the following:prospective lessee and the ability of the prospective lessee to perform its obligations under the lease.

116After (a)the Thecommission economicselects benefits,a includingperson, the potentialcommission incomeshall 117notify fromthe anapplicable oilstate oragency naturaland gassend operation, that would result if the 118person's leasebid ofto a formation that is the subjectagency. of the nomination were 119 approved;

120The (b)state Whetheragency theshall proposedenter oilinto ora gaslease operation is 121 compatible with the currentperson usesselected ofby the parcelcommission. of land that is 122 the subject of the nomination;

123The (c)state Theagency environmentalshall impactfully thatexecute wouldthe resultlease ifand thedeliver 124it leaseto ofthe aselected formationperson thatnot islater thethan subjectthirty ofdays after the nominationcommission wereselects 125such approved;person.

126The (d)person Anyshall potentialexecute adversethe geologicallease impactand thatdeliver wouldit 127back resultto if the leasestate ofagency anot formationlater thatthan isforty-five thedays subjectafter ofreceiving thesuch 128lease. nomination were approved;

129If (e)a Anyperson potentialfails impact to visitorsso orexecute usersand ofdeliver athe parcellease, 130the oflease land that is thevoid. subject of the nomination;

131(G)(1) (f)Except Anyas potentialotherwise impactprovided toin section 155.37 of the operationsRevised orCode, equipmentall ofmoney 132received by a state agency thatfrom issigning afees, staterentals, universityand orroyalty collegepayments iffor leases entered into under this section shall be paid by the 133state leaseagency ofinto athe formationstate withintreasury ato parcelthe credit of the state land ownedroyalty orfund controlledcreated 134in Sub.section 131.50 of the Revised Code.

S.(2) All money received from nomination fees and bid fees shall be paid into the state treasury to the credit of the oil and gas land management commission administration fund created in section 155.35 of the Revised Code.

B.(H) Notwithstanding any other provision of this section to the contrary, a nature preserve as defined in section 1517.01 of the Revised Code that is owned or controlled by a state agency shall not be nominated or leased under this section for the purpose of exploring for and developing and producing oil and natural gas resources.

No.(I) Except as otherwise provided in this chapter, the commission and any state agency shall not require as part of a bid or lease either of the following:

219(1) PageAny 6royalty Aspayment Passedin byexcess theof Senate by the universityamount orspecified collegein thatdivision is(A)(1)(b) theof subjectsection 155.34 of the 135Revised nominationCode; were executed;

136(2) (g) Any commentsadditional orpayment objectionsthat to the nomination submitted 137 to the commission byor the state agency thatis ownsnot orspecifically controlsauthorized the 138 parcel of land on which the proposed oil or naturalrequired gasto 139charge operationunder wouldthis takesection. place;

140Sec. (h) Any comments or objections to the nomination submitted 141 to the commission by residents of this state or other users of 142 the parcel of land that is the subject of the nomination;

143 (i) Any special terms and conditions the state agency 144 included in its comments or objections that the state agency 145 believes are appropriate for the lease of the parcel of land 146 because of specific conditions related to that parcel of land.

147 (2) The commission shall approve or disapprove a 148 nomination not later than two calendar quarters ninety days 149 following the receipt of the nomination.

The commission shall 150 post notice of the commission's decision on the commission's web 151 site and send notice of the decision by email and by certified 152 mail to the person that submitted the nomination and to the 153 state agency that owns or controls the formation within the 154 parcel of land that is the subject of the nomination.

155 (C) Each calendar quarter, the The commission shall 156 proceed to advertise for bids for a lease for a formation within 157 a parcel of land that was the subject of a nomination approved 158 during the previous calendar quarterby the commission.

The 159 commission shall publish the advertisement on its web site for a 160 period of time established by the commission.

The advertisement 161 shall include all of the following:

162 (1) An identification of each formation and parcel of land 163 Sub.

S.

B.

No.

219 Page 7 As Passed by the Senate proposed to be leased that includes all of the information 164 specified in division (A)(2)(b) of this section;

165 (2) The deadline for the submission of bids;

166 (3) A statement that each bid must contain all of the 167 items required under division (D) of this section;

168 (4) A statement that a standard lease form that is 169 consistent with the practices of the oil and natural gas 170 industries and adopted by rule by the commission will be used 171 for the lease of a formation within the parcel of land;

172 (5) Any special terms and conditions that may apply to the 173 lease because of specific conditions related to the parcel of 174 land;

175 (6) The amount of the bid fee that is required to be 176 submitted with a bid;

177 (7) Any other information that the commission considers 178 pertinent to the advertisement for bids.

179 (D) A person interested in leasing a formation within a 180 parcel of land owned or controlled by a state agency for the 181 exploration for and development and production of oil or natural 182 gas may submit a bid to the commission on a parcel by parcel 183 basis that contains all of the following:

184 (1) A bid fee of twenty-five dollars;

185 (2) The name of the person making the bid and the person's 186 address, telephone number, and email address;

187 (3) An identification of the formation and parcel of land 188 for which the bid is being submitted, including all of the 189 information specified in division (A)(2)(b) of this section;

190 Sub.

S.

B.

No.

219 Page 8 As Passed by the Senate (4) The proposed lease bonus that applies to the bid and 191 any additional proposed gross landowner royalty that applies to 192 the bid and any additional proposed gross landowner royalty that 193 applies to the bid that is in addition to the amount required 194 under division (A)(1)(b) of section 155.34 of the Revised Code;

195 (5) Proof of both of the following:

196 (a) That the person has obtained the insurance and 197 financial assurance required under section 1509.07 of the 198 Revised Code;

199 (b) That the person has registered with and obtained an 200 identification number from the division of oil and gas resources 201 management under section 1509.31 of the Revised Code.

202 (6) Any other information that the person believes is 203 relevant to the bid.

204 (E) In order to encourage the submission of bids and the 205 responsible and reasonable development of the state's natural 206 resources, the information that is contained in a bid submitted 207 to the commission under this section is confidential, shall not 208 be disclosed by the commission, and is not a public record 209 subject to inspection and copying under section 149.43 of the 210 Revised Code until a person is selected under division (F) of 211 this section.

212 The Not later than sixty days following a nomination's 213 approval, the commission shall select the person who submits the 214 highest and best bid, taking into account the financial 215 responsibility of the prospective lessee and the ability of the 216 prospective lessee to perform its obligations under the lease.

217 After the commission selects a person, the commission shall 218 notify the applicable state agency and send the person's bid to 219 Sub.

S.

B.

No.

219 Page 9 As Passed by the Senate the agency.

The state agency shall enter into a lease with the 220 person selected by the commission.

The state agency shall fully 221 execute the lease and deliver it to the selected person not 222 later than thirty days after the commission selects such person.

223 The person shall execute the lease and deliver it back to the 224 state agency not later than forty-five days after receiving such 225 lease.

If a person fails to so execute and deliver the lease, 226 the lease is void.

227 (G)(1) Except as otherwise provided in section 155.37 of 228 the Revised Code, all money received by a state agency from 229 signing fees, rentals, and royalty payments for leases entered 230 into under this section shall be paid by the state agency into 231 the state treasury to the credit of the state land royalty fund 232 created in section 131.50 of the Revised Code.

233 (2) All money received from nomination fees and bid fees 234 shall be paid into the state treasury to the credit of the oil 235 and gas land management commission administration fund created 236 in section 155.35 of the Revised Code.

237 (H) Notwithstanding any other provision of this section to 238 the contrary, a nature preserve as defined in section 1517.01 of 239 the Revised Code that is owned or controlled by a state agency 240 shall not be nominated or leased under this section for the 241 purpose of exploring for and developing and producing oil and 242 natural gas resources.

243 (I) Except as otherwise provided in this chapter, the 244 commission and any state agency shall not require as part of a 245 bid or lease either of the following:

246 (1) Any royalty payment in excess of the amount specified 247 in division (A)(1)(b) of section 155.34 of the Revised Code;

248 Sub.

S.

B.

No.

219 Page 10 As Passed by the Senate (2) Any additional payment that the commission or agency 249 is not specifically authorized or required to charge under this 250 section.

251 Sec.

(A) Not later than one hundred twenty days 252 after September 30, 2021, the The oil and gas land management 253 commission shall adopt rules in accordance with Chapter 119.

of 254 the Revised Code establishing both all of the following:

255 (1) A standard lease form that shall be used by a state 256 agency for leases entered into under this chapter, is consistent 257 with the practices of the oil and natural gas industries, and 258 contains all of the following:

259 (a) A prohibition against the use of the surface of the 260 parcel of land for oil and gas developmentSub. unless the state 261 agency, in its sole discretion, chooses to negotiate and execute 262 a written surface use agreement established under this section;

263 (b) A one-eighth gross landowner royalty;

264 (c) A shut-in royalty provision, provided payments under 265 the provision shall not be less than five thousand dollars per 266 month and not less than sixty thousand dollars per calendar 267 year;

268 (d) A primary term of five years;

269 (d)(e) An option for the lessee to extend the primary term 270 of the lease for an additional three five years by tendering to 271 the state agency the same bonus paid when first entering into 272 the lease.

273 (f) A provision that states:

"Notwithstanding any other 274 provision of this Lease to the contrary, Lessee is entitled to 275 pay any advanced delay rentals/bonus amounts owed under this 276 Sub.

219 Page136th 11G.A. As Passed by the Senate Lease within sixty (60) calendar days after Lessee receives a 277 copy of this Lease executed by Lessor." 278 (g) A provision that states:

"Notwithstandingdevelopment anyunless other 279 provision of this Lease to the contrary,state agency, in theits eventsole thatdiscretion, achooses 280 parcel subject to thisnegotiate Leaseand wasexecute acquired or improved through, 281 or is otherwise encumbered by, a federalwritten grantsurface program,use theagreement 282established Primaryunder Termthis ofsection; the Lease shall be tolled until the requirements 283 of the program, and any related grant documents, have been fully 284 satisfied by Lessor and Lessor notifies Lessee in writing of 285 same." 286 (h) A provision that states:

"Notwithstanding(b) any other 287 provision of this Lease to the contrary, in the event that a 288 parcel subject to this Lease was acquired or improved through, 289 or is otherwise encumbered by, a federal grant program, Lessee 290 may defer payment of all sums otherwise due and owing under this 291 Lease until the requirements of the program, and any related 292 grant documents, have been fully satisfied by Lessor and Lessor 293 notifies Lessee in writing of same." 294 (i) A provisionone-eighth thatgross states:landowner royalty;

"Notwithstanding(c) anyA othershut-in 295royalty provision of this Lease to the contrary, in the event that 296requires litigationannual ofpayments anyequal kindto or character is filed by a third party 297 that prevents the Lesseesum from conducting operations under the 298 Lease, including an appeal before a court or the oil and gas 299 commission, the Primary Term of thefifty Leasedollars shallper benet tolledmineral untilacre; 300 such time as there is a final, nonappealable order entered in 301 such litigation." 302 (j) A provision that states:

"Notwithstanding(d) anyA otherprimary 303term provision of thisfive Leaseyears; to the contrary, in the event that 304 litigation of any kind or character is filed by a third party 305 that prevents the Lessee from conducting operations under the 306 Sub.

(d)(e) An option for the lessee to extend the primary term of the lease for an additional three five years by tendering to the state agency the same bonus paid when first entering into the lease.

(f) A provision that states:

"Notwithstanding any other provision of this Lease to the contrary, Lessee is entitled to pay any advanced delay rentals/bonus amounts owed under this Lease within sixty (60) calendar days after Lessee receives a copy of this Lease executed by Lessor." (g) A provision that states:

"Notwithstanding any other provision of this Lease to the contrary, in the event that a parcel subject to this Lease was acquired or improved through, or is otherwise encumbered by, a federal grant program, the Primary Term of the Lease shall be tolled until the requirements of the program, and any related grant documents, have been fully satisfied by Lessor and Lessor notifies Lessee in writing of same." (h) A provision that states:

"Notwithstanding any other provision of this Lease to the contrary, in the event that a parcel subject to this Lease was acquired or improved through, or is otherwise encumbered by, a federal grant program, Lessee may defer payment of all sums otherwise due and owing under this Lease until the requirements of the program, and any related grant documents, have been fully satisfied by Lessor and Lessor notifies Lessee in writing of same." (i) A provision that states:

"Notwithstanding any other provision of this Lease to the contrary, in the event that litigation of any kind or character is filed by a third party that prevents the Lessee from conducting operations under the Lease, including an appeal before a court or the oil and gas commission, the Primary Term of the Lease shall be tolled until such time as there is a final, nonappealable order entered in such litigation." (j) A provision that states:

"Notwithstanding any other provision of this Lease to the contrary, in the event that litigation of any kind or character is filed by a third party that prevents the Lessee from conducting operations under the Lease, including an appeal before a court or the oil and gas commission, Lessee may defer payment of all sums otherwise due and owing under this Lease until a final, nonappealable order is entered in such litigation." (k) A provision that states:

"Except as explicitly provided in this Lease, the Primary Term of the Lease may be tolled and payments may be deferred only as a result of an event of force majeure." (2) A requirement that, notwithstanding any provision of law to the contrary, a lessee shall not be required to terminate drilling operations under a lease when a civil action is filed against the lessee, unless the applicable court issues an injunction or otherwise orders such drilling operations to cease.

Sub.

219 Page136th 12G.A. As Passed by the Senate Lease, including an appeal before a court or the oil and gas 307 commission, Lessee may defer payment of all sums otherwise due 308 and owing under this Lease until a final, nonappealable order is 309 entered in such litigation." 310 (l) A provision that states:

"Except(3) asAny explicitlyother 311procedures providednecessary into thisimplement Lease,sections the155.30 Primaryto Term155.36 of the LeaseRevised mayCode, besubject 312to tolleddivision and(I) payments may be deferred only as a result of ansection event155.33 313 of force majeure." 314 (2) A requirement that, notwithstanding any provision of 315 law to the contrary,Revised aCode. lessee shall not be required to terminate 316 drilling operations under a lease when a civil action is filed 317 against the lessee, unless the applicable court issues an 318 injunction or otherwise orders such drilling operations to 319 cease.

320(B) (3)Not Anylater otherthan proceduresone necessaryhundred totwenty implementdays sectionsafter 321September 155.3030, to2021, 155.36the ofThe thecommission Revisedshall Code,establish subjecta tostandard divisionsurface (I)use ofagreement 322that sectiona 155.33state agency shall use to authorize the use of the Revisedsurface Code.of a leased parcel of land.

323(C) (B)Section Not121.95 laterof than one hundred twenty days after September 324 30, 2021, the TheRevised commissionCode shalldoes establishnot aapply standardto surfacerules 325adopted useunder agreementthis thatsection aand state agency shall use to authorize the usecommission 326is ofnot thesubject surfaceto ofany arequirements leased parcel of land.that section.

327Sec. (C) Section 121.95 of the Revised Code does not apply to 328 rules adopted under this section and the commission is not 329 subject to any requirements of that section.

330 Sec.

1503.35.

The (A) Except as provided in division (B) 331 of this section, the director of natural resources shall 332 distribute money received by the state pursuant to 16 U.S.C.

500 333 from the sale of national forest timber and other national 334 forest products to the applicable county or counties in which 335 Sub.

S.

B.

No.

219 Page 13 As Passed by the Senate the national forest is situated.

Money received by a county 336 under this section shall be used by a county as follows:

337 (A)(1) Fifty per cent shall be used to maintain county 338 roads and bridges;

339 (B)(2) Fifty per cent shall be used for the benefit of 340 public schools.

341 (B) A federal mineral royalty, as defined in section 342 131.52 of the Revised Code, is not a forest product subject to 343 distribution under this section.

Any federal mineral royalty 344 received by the state shall be deposited in accordance with that 345 section.

346 Sec.

347 (A) "Well" means any borehole, whether drilled or bored, 348 within the state for production, extraction, or injection of any 349 gas or liquid mineral, excluding potable water to be used as 350 such, but including natural or artificial brines and oil field 351 waters.

352 (B) "Oil" means crude petroleum oil and all other 353 hydrocarbons, regardless of gravity, that are produced in liquid 354 form by ordinary production methods, but does not include 355 hydrocarbons that were originally in a gaseous phase in the 356 reservoir.

357 (C) "Gas" means all natural gas and all other fluid 358 hydrocarbons that are not oil, including condensate.

359 (D) "Condensate" means liquid hydrocarbons separated at or 360 near the well pad or along the gas production or gathering 361 system prior to gas processing.

362 (E) "Pool" means an underground reservoir containing a 363common Sub.accumulation of oil or gas, or both, but does not include a gas storage reservoir.

Each zone of a geological structure that is completely separated from any other zone in the same structure may contain a separate pool.

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

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

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

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

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

(3) Inefficient storing of oil or gas;

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

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

(I) "Correlative rights" means the reasonable opportunity to every person entitled thereto to recover and receive the oil and gas in and under the person's tract or tracts, or the equivalent thereof, Sub.

219 Page136th 14G.A. As Passed by the Senate common accumulation of oil or gas, or both, but does not include 364 a gas storage reservoir.

Eachwithout zonehaving ofto adrill geologicalunnecessary structurewells 365or thatincur is completely separated from any other zoneunnecessary inexpense. the same 366 structure may contain a separate pool.

367(J) (F)"Tract" "Field" means thea generalsingle, areaindividual underlaidparcel byof oneland or 368a moreportion pools.of a single, individual parcel of land.

369(K)(K)(1) (G)"Owner," "Drillingunless unit"referring to a mine or except as provided in division (K)(2) of this section, means the minimumperson acreagewho onhas whichthe oneright 370to welldrill mayon bea drilled,tract butor doesdrilling notunit, apply to drill into and produce from a wellpool, forand injectingto 371appropriate the oil or gas intoproduced therefrom either for the person or removingfor gasothers, fromexcept that a gasperson storageceases reservoirto andbe doesan 372owner notwith applyrespect to a stratigraphicwell well.when the well has been plugged in accordance with applicable rules adopted and orders issued under this chapter.

373"Owner" (H)(2) "Waste""Owner," includesfor allpurposes of obtaining a permit under section 1509.06 of the following:Revised Code, means each person having the right to drill on a tract or drilling unit, to drill into and produce from a pool, and to appropriate the oil and gas produced therefrom either for the person or for others, except that a person ceases to be an owner with respect to a well when the well has been plugged in accordance with applicable rules adopted and orders issued under this chapter.

374(3) (1)"Owner" Physicaldoes waste,not asinclude thata termperson generallywho isobtains understooda 375lease inof the mineral rights for oil and gas industry;on a parcel of land if the person does not attempt to produce or produce oil or gas from a well or obtain a permit under this chapter for a well or if the entire interest of a well is transferred to the person in accordance with division (B) of section 1509.31 of the Revised Code.

376(L) (2)"Royalty Inefficient,interest" excessive,means orthe improperfee use,holder's orshare in the 377production unnecessaryfrom dissipation,a ofwell, reservoirexcept energy;a stratigraphic well.

378(M) (3)"Discovery Inefficientwell" storingmeans the first well, except a stratigraphic well, capable of producing oil or gas;gas in commercial quantities from a pool.

379(N) (4)"Prepared Locating,clay" drilling,means equipping, operating, or producing 380 an oil or gas well in a mannerclay that reducesis orplastic tendsand tois reducethoroughly 381saturated thewith quantityfresh ofwater oilto ora gasweight ultimatelyand recoverableconsistency undergreat prudentenough 382to andsettle properthrough operationssaltwater fromin the poolwell intoin which it is drilledto orbe 383used, thatexcept causesas orotherwise tendsapproved toby causethe unnecessarychief orof excessivethe surfacedivision 384 loss or destruction of oil orand gas;gas resources management.

385(O) (5)"Rock Othersediment" undergroundmeans or surface waste in the productioncombined 386cutting orand storageresidue offrom oil,drilling gas,sedimentary orrocks condensate,and howeverformation. caused.

387(P) (I)"Excavations "Correlativeand rights"workings," means"mine," the reasonable opportunity 388 to every person entitled thereto to recover and receive"pillar" have the oilsame 389meanings andas gas in andsection under1561.01 theof person's tract or tracts, or the 390Revised equivalentCode. thereof, without having to drill unnecessary wells or 391 Sub.

S.(Q) "Coal bearing township" means a township designated as such by the chief of the division of mineral resources management under section 1561.06 of the Revised Code.

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

No.(S) "Safe Drinking Water Act" means the "Safe Drinking Water Act," 88 Stat.

2191661 Page(1974), 15U.S.C.A. As Passed by the Senate incur other unnecessary expense.

392300(f), (J)as "Tract"amended meansby athe single,"Safe individualDrinking parcelWater ofAmendments land or a 393 portion of a1977," single,91 individualStat. parcel of land.

3941393, (K)(K)(1)U.S.C.A. "Owner," unless referring to a mine or except as 395 provided in division (K)(2) of this section, means the person 396 who has the right to drill on a tract or drilling unit, to drill 397 into and produce from a pool, and to appropriate the oil or gas 398 produced therefrom either for the person or for others, except 399 that a person ceases to be an owner with respect to a well when 400 the well has been plugged in accordance with applicable rules 401 adopted and orders issued under this chapter.

"Owner"300(f), 402the (2)"Safe "Owner,"Drinking forWater purposesAct ofAmendments obtaining a permit under 403 section 1509.06 of the1986," Revised100 Code,Stat. means each person having 404 the right to drill on a tract or drilling unit, to drill into 405 and produce from a pool, and to appropriate the oil and gas 406 produced therefrom either for the person or for others, except 407 that a person ceases to be an owner with respect to a well when 408 the well has been plugged in accordance with applicable rules 409 adopted and orders issued under this chapter.

410 (3) "Owner" does not include a person who obtains a lease 411 of the mineral rights for oil and gas on a parcel of land if the 412 person does not attempt to produce or produce oil or gas from a 413 well or obtain a permit under this chapter for a well or if the 414 entire interest of a well is transferred to the person in 415 accordance with division (B) of section 1509.31 of the Revised 416 Code.

417 (L) "Royalty interest" means the fee holder's share in the 418 production from a well, except a stratigraphic well.

419 (M) "Discovery well" means the first well, except a 420 Sub.

S.

B.

No.

219 Page 16 As Passed by the Senate stratigraphic well, capable of producing oil or gas in 421 commercial quantities from a pool.

422 (N) "Prepared clay" means a clay that is plastic and is 423 thoroughly saturated with fresh water to a weight and 424 consistency great enough to settle through saltwater in the well 425 in which it is to be used, except as otherwise approved by the 426 chief of the division of oil and gas resources management.

427 (O) "Rock sediment" means the combined cutting and residue 428 from drilling sedimentary rocks and formation.

429 (P) "Excavations and workings," "mine," and "pillar" have 430 the same meanings as in section 1561.01 of the Revised Code.

431 (Q) "Coal bearing township" means a township designated as 432 such by the chief of the division of mineral resources 433 management under section 1561.06 of the Revised Code.

434 (R) "Gas storage reservoir" means a continuous area of a 435 subterranean porous sand or rock stratum or strata into which 436 gas is or may be injected for the purpose of storing it therein 437 and removing it therefrom and includes a gas storage reservoir 438 as defined in section 1571.01 of the Revised Code.

439 (S) "Safe Drinking Water Act" means the "Safe Drinking 440 Water Act," 88 Stat.

1661 (1974), 42 U.S.C.A.

300(f), as amended 441 by the "Safe Drinking Water Amendments of 1977," 91 Stat.

1393, 442 U.S.C.A.

300(f), the "Safe Drinking Water Act Amendments of 443 1986," 100 Stat.

300(f), and the "Safe Drinking 444 Water Act Amendments of 1996," 110 Stat.

1613, 42 U.S.C.A.Sub.

445 300(f), and regulations adopted under those acts.

446 (T) "Person" includes any political subdivision, 447 department, agency, or instrumentality of this state;

the United 448 States and any department, agency, or instrumentality thereof;

449 Sub.

219 Page136th 17G.A. As Passed by the Senate any legal entity defined as a person under section 1.59 of the 450 Revised Code;

andU.S.C.A. any other form of business organization or 451 entity recognized by the laws of this state.

452300(f), (U)and "Brine"regulations meansadopted allunder salinethose geologicalacts. formation water 453 resulting from, obtained from, or produced in connection with 454 exploration, drilling, well stimulation, production of oil or 455 gas, or plugging of a well.

456(T) (V)"Person" "Watersincludes ofany thepolitical state"subdivision, meansdepartment, allagency, streams,or lakes,instrumentality ponds, 457 marshes, watercourses, waterways, springs, irrigation systems, 458 drainage systems, and other bodies of water, surface or 459 underground, natural or artificial, that are situated wholly or 460 partially within this statestate; or within its jurisdiction, except 461 those private waters that do not combine or effect a junction 462 with natural surface or underground waters.

463the (W)United "ExemptStates Mississippianand well"any meansdepartment, aagency, wellor thatinstrumentality meetsthereof; 464 all of the following criteria:

465any (1)legal Wasentity drilleddefined andas completeda beforeperson Januaryunder 1,section 1980;1.59 of the Revised Code;

466and (2)any Isother locatedform inof anbusiness unglaciatedorganization partor ofentity recognized by the state;laws of this state.

467(U) (3)"Brine" Wasmeans completedall insaline ageological reservoirformation nowater deeperresulting thanfrom, theobtained 468from, Mississippianor Bigproduced Injun sandstone in areasconnection underlainwith byexploration, 469drilling, Pennsylvanianwell orstimulation, Permianproduction stratigraphy,of oil or thegas, Mississippianor 470plugging Bereaof sandstonea inwell. areas directly underlain by Permian 471 stratigraphy;

472(V) (4)"Waters Isof usedthe primarilystate" tomeans provideall oilstreams, lakes, ponds, marshes, watercourses, waterways, springs, irrigation systems, drainage systems, and other bodies of water, surface or gasunderground, fornatural domesticor 473artificial, use.that are situated wholly or partially within this state or within its jurisdiction, except those private waters that do not combine or effect a junction with natural surface or underground waters.

474(W) (X) "Exempt domesticMississippian well" means a well that meets all of 475 the following criteria:

476 (1) IsWas owneddrilled byand thecompleted ownerbefore ofJanuary the1, surface1980; estate of the 477 Sub.

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

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

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

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

(1) Is owned by the owner of the surface estate of the tract on which the well is located;

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

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

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

(Y) "Urbanized area" means an area where a well or production facilities of a well are located within a municipal corporation or within a township that has an unincorporated population of more than five thousand in the most recent federal decennial census prior to the issuance of the permit for the well or production facilities.

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

(AA) "Production operation" means all operations and activities and all related equipment, facilities, and other structures that may be used in or associated with the exploration and production of oil, gas, or other mineral resources that are regulated under this chapter, including operations and Sub.

219 Page136th 18G.A. As Passed by the Senate tract on which the well is located;

478activities (2)associated Iswith usedsite primarilypreparation, tosite provideconstruction, gasaccess forroad theconstruction, owner'swell 479drilling, domesticwell use;completion, well stimulation, well site activities, reclamation, and plugging.

480"Production (3)operation" Isalso locatedincludes moreall thanof two hundred feet horizontal 481 distance from any inhabited private dwelling house other than an 482 inhabited private dwelling house located on the tractfollowing: on which 483 the well is located;

484(1) (4)The Ispiping, locatedequipment, moreand thanfacilities twoused hundredfor feetthe horizontalproduction 485and distancepreparation from any public building that may be used as a place of 486hydrocarbon resort,gas assembly,or education,liquids entertainment,for lodging,transportation trade, 487 manufacture, repair, storage, traffic, or occupancydelivery; by the 488 public.

489(2) (Y)The "Urbanizedprocesses area"of meansextraction anand arearecovery, wherelifting, astabilization, welltreatment, orseparation, 490 production facilitiesprocessing, ofstorage, awaste welldisposal, areand locatedmeasurement within a municipal 491 corporation or within a township that has an unincorporated 492 population of morehydrocarbon thangas fiveand thousandliquids, inincluding therelated mostequipment recentand federalfacilities; 493 decennial census prior to the issuance of the permit for the 494 well or production facilities.

495(3) (Z)The "Wellprocesses stimulation"and orrelated "stimulationequipment ofand afacilities well"associated meanswith 496production compression, gas lift, gas injection, fuel gas supply, well drilling, well stimulation, and well completion activities, including dikes, pits, and earthen and other impoundments used for the processtemporary storage of enhancingfluids and waste substances associated with well productivity,drilling, includingwell hydraulicstimulation, 497and fracturingwell operations.completion activities;

498(4) (AA)Equipment "Productionand operation"facilities meansat alla operationswellpad andor 499other activitieslocation andthat allare relatedused equipment,for facilities,the andtransportation, otherhandling, 500recycling, structurestemporary thatstorage, maymanagement, beprocessing, used in or associatedtreatment withof theany 501equipment, explorationmaterial, and productionby-products of oil, gas, or other mineralsubstances 502from resourcesan thatoperation areat regulateda underwellpad thisthat chapter,may includingbe 503used operationsor andreused activitiesat associatedthe withsame siteor preparation,another siteoperation 504at construction,a accesswellpad roador construction,that wellwill drilling,be welldisposed 505of completion,in wellaccordance stimulation,with wellapplicable sitelaws activities,and reclamation,rules 506adopted Sub.under them.

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

(CC) "Orphaned well" means a well that has not been properly plugged or its land surface restored in accordance with this chapter and the rules adopted under it to which either of the following apply:

(1) The owner of the well is unknown, deceased, or cannot be located and the well is abandoned.

(2) The owner of the well has abandoned the well and there is no money available to plug the well in accordance with this chapter and the rules adopted under it.

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

(EE) "Material and substantial violation" means any of the following:

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

(2) Failure to obtain, maintain, update, or submit proof of insurance coverage that is required under this chapter;

(3) Failure to obtain, maintain, update, or submit proof of a surety bond that is required under this chapter;

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

Sub.

219 Page136th 19G.A. As Passed by the Senate and plugging.

"Production(5) operation"Failure alsoto includesreimburse allthe oil and gas well fund pursuant to a final order issued under section 1509.071 of the 507Revised following:Code;

508(6) (1)Failure Theto piping,comply equipment,with anda facilitiesfinal usednonappealable fororder the 509 production and preparation of hydrocarbonthe gaschief orissued liquidsunder forsection 5101509.04 transportationof orthe delivery;Revised Code;

511(7) (2)Failure Theto processessubmit ofa extractionreport, andtest recovery,result, lifting,fee, 512or stabilization,document treatment,that separation,is productionrequired processing,in 513this storage,chapter wasteor disposal,rules andadopted measurementunder ofit. hydrocarbon gas and 514 liquids, including related equipment and facilities;

515(FF) (3)"Severer" Thehas processesthe andsame relatedmeaning equipmentas andin facilitiessection 5165749.01 associatedof with production compression, gas lift, gas injection, 517 fuel gas supply, well drilling, well stimulation, and well 518 completion activities, including dikes, pits, and earthen and 519 other impoundments used for the temporaryRevised storageCode. of fluids and 520 waste substances associated with well drilling, well 521 stimulation, and well completion activities;

522(GG) (4)"Horizontal Equipmentwell" andmeans facilities at a wellpadwell or other 523 location that areis useddrilled for the transportation,production handling, 524 recycling, temporary storage, management, processing, or 525 treatment of anyoil equipment, material, and by-products or othergas 526in substanceswhich fromthe anwellbore operationreaches at a wellpadhorizontal that may be used or 527near reusedhorizontal atposition in the samePoint orPleasant, anotherUtica, operation at a wellpad or thatMarcellus 528formation will be disposed of in accordance with applicable laws and rulesthe 529well adoptedis understimulated. them.

530"Horizontal (BB)well" "Annulardoes overpressurization"not meansinclude thea accumulationstratigraphic 531well. of fluids within an annulus with sufficient pressure to allow 532 migration of annular fluids into underground sources of drinking 533 water.

534(HH) (CC)"Well "Orphanedpad" well" means athe wellarea that hasis notcleared beenor 535prepared Sub.for the drilling of one or more horizontal wells.

S.(II) "Stratigraphic well" means a borehole that is drilled within the state on a tract solely to conduct research or testing of the subsurface geology, including porosity and permeability.

B."Stratigraphic well" does not include geotechnical or soil borings or a borehole drilled for seismic shot or mining of industrial minerals or coal.

No.Sec.

219 Page 20 As Passed by the Senate properly plugged or its land surface restored in accordance with 536 this chapter and the rules adopted under it to which either of 537 the following apply:

538 (1) The owner of the well is unknown, deceased, or cannot 539 be located and the well is abandoned.

540 (2) The owner of the well has abandoned the well and there 541 is no money available to plug the well in accordance with this 542 chapter and the rules adopted under it.

543 (DD) "Temporarily inactive well" means a well that has 544 been granted temporary inactive status under section 1509.062 of 545 the Revised Code.

546 (EE) "Material and substantial violation" means any of the 547 following:

548 (1) Failure to obtain a permit to drill, reopen, convert, 549 plugback, or plug a well under this chapter;

550 (2) Failure to obtain, maintain, update, or submit proof 551 of insurance coverage that is required under this chapter;

552 (3) Failure to obtain, maintain, update, or submit proof 553 of a surety bond that is required under this chapter;

554 (4) Failure to restore a disturbed land surface as 555 required by section 1509.072 of the Revised Code;

556 (5) Failure to reimburse the oil and gas well fund 557 pursuant to a final order issued under section 1509.071 of the 558 Revised Code;

559 (6) Failure to comply with a final nonappealable order of 560 the chief issued under section 1509.04 of the Revised Code;

561 (7) Failure to submit a report, test result, fee, or 562 Sub.

S.

B.

No.

219 Page 21 As Passed by the Senate document that is required in this chapter or rules adopted under 563 it.

564 (FF) "Severer" has the same meaning as in section 5749.01 565 of the Revised Code.

566 (GG) "Horizontal well" means a well that is drilled for 567 the production of oil or gas in which the wellbore reaches a 568 horizontal or near horizontal position in the Point Pleasant, 569 Utica, or Marcellus formation and the well is stimulated.

570 "Horizontal well" does not include a stratigraphic well.

571 (HH) "Well pad" means the area that is cleared or prepared 572 for the drilling of one or more horizontal wells.

573 (II) "Stratigraphic well" means a borehole that is drilled 574 within the state on a tract solely to conduct research or 575 testing of the subsurface geology, including porosity and 576 permeability.

"Stratigraphic well" does not include geotechnical 577 or soil borings or a borehole drilled for seismic shot or mining 578 of industrial minerals or coal.

579 Sec.

There is hereby created in the department of 580 natural resources the division of oil and gas resources 581 management, which shall be administered by the chief of the 582 division of oil and gas resources management.

The division has 583 sole and exclusive authority to regulate the permitting, 584 location, and spacing of oil and gas wells and production 585 operations within the state, excepting only those activities 586 regulated under federal laws for which oversight has been 587 delegated to the environmental protection agency and activities 588 regulated under sections 6111.02 to 6111.028 of the Revised 589 Code.

The division's sole and exclusive authority includes the 590 authority to regulate any portion of an oil and gas well located 591in Sub.this state, regardless of whether any other portion of that oil and gas well is located outside of this state.

The regulation of oil and gas activities is a matter of general statewide interest that requires uniform statewide regulation, and this chapter and rules adopted under it constitute a comprehensive plan with respect to all aspects of the locating, drilling, well stimulation, completing, and operating of oil and gas wells within this state, including site construction and restoration, permitting related to those activities, and the disposal of wastes from those wells.

In order to assist the division in the furtherance of its sole and exclusive authority as established in this section, the chief may enter into cooperative agreements with other state agencies for advice and consultation, including visitations at the surface location of a well on behalf of the division.

In cases in which a well is located both in this state and another state, the chief also may enter into a memorandum of understanding with an agency of another state for purposes of the interstate well.

Such cooperative agreements and memorandums of understanding do not confer on other state agencies or entities any authority to administer or enforce this chapter and rules adopted under it.

In addition, such cooperative agreements and memorandums of understanding shall not be Sub.

219 Page136th 22G.A. As Passed by the Senate in this state, regardless of whether any other portion of that 592 oil and gas well is located outside of this state.

Theconstrued 593 regulation of oil and gas activities is a matter of general 594 statewide interest that requires uniform statewide regulation, 595 and this chapter and rules adopted under it constitute a 596 comprehensive plan with respect to alldilute aspectsor ofdiminish the locating,division's 597sole drilling, well stimulation, completing, and operatingexclusive ofauthority oilas andestablished 598in gas wells within this state,section. including site construction and 599 restoration, permitting related to those activities, and the 600 disposal of wastes from those wells.

InNothing orderin tothis assistsection affects the 601authority divisiongranted into the furtherancedirector of itstransportation sole and exclusivelocal authorityauthorities 602in assection established723.01 inor this4513.34 section,of the chiefRevised mayCode, enterprovided intothat 603the cooperativeauthority agreementsgranted withunder otherthose statesections agenciesshall fornot advicebe andexercised 604in consultation,a includingmanner visitationsthat atdiscriminates theagainst, surfaceunfairly locationimpedes, ofor aobstructs 605oil welland ongas behalfactivities ofand theoperations division.regulated under this chapter.

InThe caseschief inshall whichnot ahold wellany isother 606public locatedoffice, bothnor inshall this state and another state, the chief alsobe mayengaged 607in enterany intooccupation aor memorandumbusiness ofthat understandingmight interfere with anor agencybe ofinconsistent 608with another state for purposes of the interstateduties well.as chief.

SuchMoney 609collected cooperativeby agreementsthe chief pursuant to sections 1509.06, 1509.061, 1509.062, 1509.071, 1509.13, 1509.22, 1509.222, 1509.28, 1509.34, 1509.50, and memorandums5749.02 of understandingthe doRevised notCode, 610all confermoney onfrom otherthe statesale agenciesof orcarbon entitiescredits, all civil penalties paid under section 1509.33 of the Revised Code, and, notwithstanding any authoritysection of the Revised Code relating to 611the administerdistribution or enforcecrediting thisof chapterfines for violations of the Revised Code, all fines imposed under divisions (A) and rules(B) adoptedof section 1509.99 of the Revised Code and fines imposed under it.divisions (C) and (D) of section 1509.99 of the Revised Code for all violations prosecuted by the attorney general and for violations prosecuted by prosecuting attorneys that do not involve the transportation of brine by vehicle shall be deposited into the state treasury to the credit of the oil and gas well fund, which is hereby created.

612Fines Inimposed addition,under suchdivisions cooperative(C) agreements and memorandums(D) of 613section understanding1509.99 shallof notthe beRevised construedCode tofor diluteviolations orprosecuted diminishby prosecuting attorneys that involve the 614transportation division'sof solebrine by vehicle and exclusivepenalties authorityassociated aswith establisheda incompliance agreement entered into pursuant to this 615chapter section.shall be paid to the county treasury of the county where the violation occurred.

NothingThe infund thisshall sectionbe affectsused thesolely authorityand grantedexclusively 616for to the directorpurposes ofenumerated transportationin anddivision local(B) authoritiesof in 617 section 723.011509.071 or 4513.34 of the Revised Code, providedfor that the 618expenses authorityof grantedthe underdivision thoseassociated sectionswith shallthe notadministration beof exercisedthis inchapter 619 a manner that discriminates against, unfairly impedes, or 620 obstructs oil and gasChapter activities1571. and operations regulated under 621 this chapter.

622of Sub.the Revised Code and rules adopted under them, and for expenses that are critical and necessary for the protection of human health and safety and the environment related to oil and gas production in this state.

S.The expenses of the division in excess of the moneys available in the fund shall be paid from general revenue fund appropriations to the department.

B.Sec.

No.

219 Page 23 As Passed by the Senate The chief shall not hold any other public office, nor 623 shall the chief be engaged in any occupation or business that 624 might interfere with or be inconsistent with the duties as 625 chief.

626 Money collected by the chief pursuant to sections 1509.06, 627 1509.061, 1509.062, 1509.071, 1509.13, 1509.22, 1509.222, 628 1509.28, 1509.34, 1509.50, and 5749.02 of the Revised Code, all 629 money from the sale of carbon credits, all civil penalties paid 630 under section 1509.33 of the Revised Code, and, notwithstanding 631 any section of the Revised Code relating to the distribution or 632 crediting of fines for violations of the Revised Code, all fines 633 imposed under divisions (A) and (B) of section 1509.99 of the 634 Revised Code and fines imposed under divisions (C) and (D) of 635 section 1509.99 of the Revised Code for all violations 636 prosecuted by the attorney general and for violations prosecuted 637 by prosecuting attorneys that do not involve the transportation 638 of brine by vehicle shall be deposited into the state treasury 639 to the credit of the oil and gas well fund, which is hereby 640 created.

Fines imposed under divisions (C) and (D) of section 641 1509.99 of the Revised Code for violations prosecuted by 642 prosecuting attorneys that involve the transportation of brine 643 by vehicle and penalties associated with a compliance agreement 644 entered into pursuant to this chapter shall be paid to the 645 county treasury of the county where the violation occurred.

646 The fund shall be used solely and exclusively for the 647 purposes enumerated in division (B) of section 1509.071 of the 648 Revised Code, for the expenses of the division associated with 649 the administration of this chapter and Chapter 1571.

of the 650 Revised Code and rules adopted under them, and for expenses that 651 are critical and necessary for the protection of human health 652 and safety and the environment related to oil and gas production 653 Sub.

S.

B.

No.

219 Page 24 As Passed by the Senate in this state.

The expenses of the division in excess of the 654 moneys available in the fund shall be paid from general revenue 655 fund appropriations to the department.

656 Sec.

(A) The chief of the division of oil and gas 657 resources management shall adopt, rescind, and amend, in 658 accordance with Chapter 119.

of the Revised Code, rules for the 659 administration, implementation, and enforcement of this chapter.

660 The rules shall include an identification of the subjects that 661 the chief shall address when attaching terms and conditions to a 662 permit with respect to a well and production facilities of a 663 well that are located within an urbanized area or with respect 664 to a horizontal well and production facilities associated with a 665 horizontal well.

The subjects shall include all of the 666 following:

667 (1) Safety concerning the drilling or operation of a well;

668 (2) Protection of the public and private water supply, 669 including the amount of water used and the source or sources of 670 the water;

671 (3) Fencing and screening of surface facilities of a well;

672Sub. (4) Containment and disposal of drilling and production 673 wastes;

674 (5) Construction of access roads for purposes of the 675 drilling and operation of a well;

676 (6) Noise mitigation for purposes of the drilling of a 677 well and the operation of a well, excluding safety and 678 maintenance operations.

679 No person shall violate any rule of the chief adopted 680 under this chapter.

681 Sub.

219 Page136th 25G.A. As Passed by the Senate (B)(1) Any order issuing, denying, or modifying a permit 682 or notices required to be made by the chief pursuant to this 683 chapter shall be made in compliance with Chapter 119.

of(4) theContainment 684and Reviseddisposal Code, except that personal service may be used in lieu 685 of servicedrilling byand mail.production wastes;

Every(5) orderConstruction issuing,of denying,access orroads modifyingfor apurposes 686of permitthe underdrilling this chapter and describedoperation as such shall be 687 considered an adjudication order for purposes of Chaptera 119.well;

(6) Noise mitigation for purposes of 688the drilling of a well and the Revisedoperation Code.of a well, excluding safety and maintenance operations.

DivisionNo (B)(1)person ofshall thisviolate sectionany doesrule not apply 689 to a permit issued under section 1509.06 of the Revised Code 690 does not apply to orders made by or notices required to be made 691 by the chief pursuant to this chapter or rules adopted under it.this chapter.

692(B)(1) (2)Any Whereorder noticeissuing, todenying, anyor personmodifying isa requiredpermit byor thisnotices 693required chapter,to the notice shall be givenmade inby order to meet the 694chief requirementspursuant ofto lawThethis chiefchapter shall adoptbe rulesmade in accordancecompliance 695 with Chapter 119.

of the Revised CodeCode, establishingexcept boththat personal service may be used in lieu of theservice 696by following:mail.

697Every (a)order Proceduresissuing, fordenying, noticeor requiredmodifying toa bepermit providedunder tothis anychapter 698and persondescribed underas thissuch chaptershall andbe rulesconsidered adoptedan underadjudication it;order for purposes of Chapter 119.

699of (b) Procedures for serving the chief'sRevised ordersCode. and 700 compliance notices.

701Division (C)(B)(1) Theof chiefthis orsection thedoes chief'snot authorizedapply representativeto maya 702permit atissued anyunder timesection enter1509.06 uponof lands, public or private, for the purposeRevised 703Code ofdoes administrationnot orapply enforcementto of this chapter, the rules 704 adopted or orders made thereunder,by or termsnotices orrequired conditionsto ofbe 705made permitsby orthe registrationchief certificatespursuant issued thereunder and may 706 examine and copy records pertaining to thethis drilling,chapter conversion, 707 or operationrules ofadopted aunder wellit. for injection of fluids and logs required 708 by division (C) of section 1509.223 of the Revised Code.

No(2) 709Where personnotice shallto preventany orperson hinderis therequired chiefby orthis chapter, the chief'snotice 710shall authorizedbe representativegiven in order to meet the performancerequirements of officiallawThe duties.chief shall adopt rules in accordance with Chapter 119.

711of Sub.the Revised Code establishing both of the following:

(a) Procedures for notice required to be provided to any person under this chapter and rules adopted under it;

(b) Procedures for serving the chief's orders and compliance notices.

(C) The chief or the chief's authorized representative may at any time enter upon lands, public or private, for the purpose of administration or enforcement of this chapter, the rules adopted or orders made thereunder, or terms or conditions of permits or registration certificates issued thereunder and may examine and copy records pertaining to the drilling, conversion, or operation of a well for injection of fluids and logs required by division (C) of section 1509.223 of the Revised Code.

No person shall prevent or hinder the chief or the chief's authorized representative in the performance of official duties.

If entry is prevented or hindered, the chief or the chief's authorized representative may apply for, and the court of common pleas may issue, an appropriate inspection warrant necessary to achieve the purposes of this chapter within the court's territorial jurisdiction.

(D) The chief may issue orders to enforce this chapter, rules adopted thereunder, and terms or conditions of permits issued thereunder.

Any such order shall be considered an adjudication order for the purposes of Chapter 119.

of the Revised Code.

No person shall violate any order of the chief issued under this chapter.

No person shall violate a term or condition of a permit or registration certificate issued under this chapter.

(E) Orders of the chief denying, suspending, or revoking a registration certificate;

approving or denying approval of an application for revision of a registered transporter's plan for disposal;

or to implement, administer, or enforce division (A) of section 1509.224 and sections 1509.22, 1509.222, 1509.223, 1509.225, and 1509.226 of the Revised Code pertaining to the transportation of brine by vehicle and the disposal of brine so transported are not adjudication orders for purposes of Chapter Sub.

219 Page136th 26G.A. As Passed by the Senate If entry is prevented or hindered, the chief or the chief's 712 authorized representative may apply for, and the court of common 713 pleas may issue, an appropriate inspection warrant necessary to 714 achieve the purposes of this chapter within the court's 715 territorial jurisdiction.

716119. (D) The chief may issue orders to enforce this chapter, 717 rules adopted thereunder, and terms or conditions of permits 718 issued thereunder.

Any such order shall be considered an 719 adjudication order for the purposes of Chapter 119.

of the 720 Revised Code.

No person shall violate any order of the chief 721 issued under this chapter.

No person shall violate a term or 722 condition of a permit or registration certificate issued under 723 this chapter.

724 (E) Orders of the chief denying, suspending, or revoking a 725 registration certificate;

approving or denying approval of an 726 application for revision of a registered transporter's plan for 727 disposal;

or to implement, administer, or enforce division (A) 728 of section 1509.224 and sections 1509.22, 1509.222, 1509.223, 729 1509.225, and 1509.226 of the Revised Code pertaining to the 730 transportation of brine by vehicle and the disposal of brine so 731 transported are not adjudication orders for purposes of Chapter 732 119.

The chief shall issue such orders 733 under division (A) or (B) of section 1509.224 of the Revised 734 Code, as appropriate.

735 Sec.

(A) An application for a permit to drill a 736 new well, drill an existing well deeper, reopen a well, convert 737 a well to any use other than its original purpose, or plug back 738 a well to a different source of supply, including any portion of 739 a well located in this state, regardless of whether any other 740 portion of that well is located outside of this state, and 741including Sub.associated production operations, shall be filed with the chief of the division of oil and gas resources management upon such form as the chief prescribes and shall contain each of the following that is applicable:

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

(2) The signature of the owner or the owner's authorized agent.

When an authorized agent signs an application, it shall be accompanied by a certified copy of the appointment as such agent.

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

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

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

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

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

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

(8)(a) An identification, to the best of the owner's knowledge, of each proposed source of ground water and surface water that will be used in the production operations of the well.

The identification of each proposed source of water shall indicate if the water will be withdrawn from the Lake Erie watershed or the Ohio river watershed.

In addition, the owner shall provide, to the best of the owner's knowledge, the proposed estimated rate and volume of the water withdrawal for the production operations.

If recycled water will be used in the production operations, the owner shall provide the estimated volume of recycled water to be used.

The owner shall submit to the chief an update of any of the information that is required by division (A)(8)(a) of this section if any of that information changes before the chief issues a permit for the application.

(b) Except as provided in division (A)(8)(c) of this section, for an application for a permit to drill a new well within an urbanized area, the results of sampling of water wells within three hundred feet of the proposed well prior to commencement of drilling.

In addition, the owner shall include a list that identifies the location of each water well where the owner of the property on which the water well is located denied the owner access to sample the water well.

The sampling shall be conducted in accordance with the guidelines established in "Best Management Practices For Pre- drilling Water Sampling" in effect at the time that the application is submitted.

The division shall Sub.

219 Page136th 27G.A. As Passed by the Senate including associated production operations, shall be filed with 742 the chief of the division of oil and gas resources management 743 upon such form as the chief prescribes and shall contain each of 744 the following that is applicable:

745furnish (1)those Theguidelines nameupon request and addressshall ofmake thethem owneravailable and,on if a 746 corporation, the namedivision's andweb addresssite. of the statutory agent;

747If (2)the Thechief signaturedetermines ofthat conditions at the ownerproposed orwell site warrant a revision, the owner'schief authorizedmay 748revise agent.the distance established in this division for purposes of pre-drilling water sampling.

When(c) For an authorizedapplication agentfor signsa anpermit application,to itdrill shalla 749new behorizontal accompaniedwell, bythe aresults certifiedof copysampling of water wells within one thousand five hundred feet of the appointmentproposed ashorizontal suchwellhead 750prior agent.to commencement of drilling.

751In (3)addition, Thethe namesowner andshall addressesinclude ofa alllist personsthat holdingidentifies the 752location royaltyof interesteach inwater well where the tractowner uponof the property on which the water well is located ordenied 753the isowner access to besample drilledthe orwater withinwell. a proposed drilling unit;

754 (4) The locationsampling ofshall thebe tractconducted orin drillingaccordance unitwith on which 755 the wellguidelines isestablished locatedin or"Best isManagement toPractices beFor drilledPre-drilling identifiedWater bySampling" sectionin oreffect 756at lotthe number,time city,that village,the township,application andis county;submitted.

757The (5)division Designationshall offurnish thethose wellguidelines byupon namerequest and number;shall make them available on the division's web site.

758If (6)(a)the Thechief geologicaldetermines formationthat toconditions beat testedthe orproposed usedwell andsite 759warrant a revision, the proposedchief totalmay depthrevise the distance established in this division for purposes of thepre-drilling well;water sampling.

760(9) (b)For Ifan theapplication for a permit to drill a new well iswithin foran urbanized area, a sworn statement that the injectionapplicant ofhas aprovided liquid,notice identityby 761regular mail of the geologicalapplication formation to bethe usedowner asof each parcel of real property that is located within five hundred feet of the injectionsurface zonelocation of the well and 762to the compositionexecutive authority of the liquidmunicipal corporation or the board of township trustees of the township, as applicable, in which the well is to be injected.located.

763In (7)addition, Thethe typenotice shall contain a statement that informs an owner of drillingreal equipmentproperty who is required to bereceive used;the notice under division (A)(9) of this section that within five days of receipt of the notice, the owner is required to provide notice under section 1509.60 of the Revised Code to each residence in an occupied dwelling that is located on the owner's parcel of real property.

764The (8)(a)notice Anshall identification,contain toa statement that an application has been filed with the bestdivision of theoil owner'sand 765gas knowledge,resources management, identify the name of eachthe applicant and the proposed sourcewell location, include the name and address of groundthe waterdivision, and surfacecontain 766a waterstatement that willcomments beregarding usedthe inapplication themay productionbe operationssent ofto the 767division. well.

The identificationnotice ofmay each proposed source of water shall 768 indicate if the water will be withdrawnprovided fromby thehand Lakedelivery Erieor 769regular Sub.mail.

The identity of the owners of parcels of real property shall be determined using the tax records of the municipal corporation or county in which a parcel of real property is located as of the date of the notice.

(10) A plan for restoration of the land surface disturbed by drilling operations.

The plan shall provide for compliance with the restoration requirements of division (A) of section 1509.072 of the Revised Code and any rules adopted by the chief pertaining to that restoration.

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

(b) For an application for a permit for a horizontal well, a copy of an agreement concerning maintenance and safe use of the roads, streets, and highways described in division (A)(11)(a) of this section entered into on reasonable terms with the public official that has the legal authority to enter into such maintenance and use agreements for each county, township, and municipal corporation, as Sub.

219 Page136th 28G.A. As Passed by the Senate watershed or the Ohio river watershed.

Inapplicable, addition,in which any such road, street, or highway is located or an affidavit on a form prescribed by the chief attesting that the owner 770attempted shallin provide,good faith to theenter bestinto an agreement under division (A)(11)(b) of thethis owner'ssection knowledge,with the 771applicable proposedpublic estimatedofficial rateof andeach volumesuch ofcounty, thetownship, wateror withdrawalmunicipal forcorporation, 772but thethat productionno operations.agreement was executed.

If(12) recycledSuch waterother willrelevant beinformation usedas in the 773chief productionprescribes operations,by therule. owner shall provide the estimated 774 volume of recycled water to be used.

TheEach ownerapplication shall submitbe toaccompanied 775by thea chiefmap, anon updatea ofscale anynot ofsmaller thethan informationfour thathundred isfeet requiredto 776the inch, prepared by divisionan (A)(8)(a)Ohio ofregistered thissurveyor, sectionshowing ifthe anylocation of thatthe informationwell 777and changescontaining beforesuch theother chiefdata issuesas amay permitbe forprescribed by the application.chief.

778If (b)the Exceptwell asis providedor inis divisionto (A)(8)(c)be oflocated thiswithin 779the section,excavations forand anworkings applicationof for a permitmine, tothe drillmap aalso newshall wellinclude 780the withinlocation anof urbanizedthe area,mine, the resultsname of samplingthe ofmine, waterand wellsthe 781name within three hundred feet of the proposedperson welloperating priorthe tomine. 782 commencement of drilling.

In(B) addition,The thechief owner shall includecause a 783copy listof that identifies the locationweekly ofcircular eachprepared waterby well where the 784division ownerto ofbe theprovided propertyto on which the watercounty wellengineer isof locatedeach deniedcounty 785that thecontains owneractive accessor toproposed sampledrilling theactivity. water well.

The samplingweekly circular shall becontain, 786in conductedthe inmanner accordanceprescribed withby the guidelineschief, establishedthe innames "Bestof 787all Managementapplicants Practicesfor Forpermits, Pre-drillingthe Waterlocation Sampling"of ineach effectwell 788or atproposed well, the timeinformation thatrequired theby applicationdivision is(A)(11) submitted.of this section, and any additional information the chief prescribes.

TheIn divisionaddition, 789the chief promptly shall furnishtransfer thosean guidelineselectronic uponcopy, requestor andif shallthat makemethod themis 790not available onto a municipal corporation or township, a copy via regular mail, of a drilling permit application to the division'sclerk webof site.the legislative authority of the municipal corporation or to the clerk of the township in which the well or proposed well is or is to be located if the legislative authority of the municipal corporation or the board of township trustees has asked to receive copies of such applications and the appropriate clerk has provided the chief an accurate, current electronic mailing address.

If(C)(1) Except as provided in division divisions (C)(2) and (3) of this section, the chief determinesshall 791not thatissue conditionsa permit for at least ten days after the proposeddate wellof sitefiling warrantof athe revision,application 792for the chiefpermit mayunless, reviseupon reasonable cause shown, the distancechief establishedwaives inthat thisperiod divisionor 793a request for purposesexpedited ofreview pre-drillingis waterfiled sampling.under this section.

794However, (c)the Forchief anshall applicationissue for a permit towithin drilltwenty-one adays newof 795 horizontal well, the resultsfiling of samplingthe ofapplication waterunless wellsthe withinchief 796denies one thousand five hundred feet of the proposedapplication horizontalby 797order. wellhead prior to commencement of drilling.

In(2) addition,If the 798location ownerof a well or proposed well will be or is within an urbanized area, the chief shall includenot issue a listpermit thatfor identifiesat least eighteen days after the locationdate of eachfiling 799of waterthe wellapplication wherefor the ownerpermit ofunless, upon reasonable cause shown, the propertychief onwaives whichthat period or the waterchief 800at Sub.the chief's discretion grants a request for an expedited review.

However, the chief shall issue a permit for a well or proposed well within an urbanized area within thirty days of the filing of the application unless the chief denies the application by order.

(3) If the well that is the subject of the application also requires the chief to issue a permit under section 1509.21 or 1509.221 or division (D) of section 1509.22 of the Revised Code, the chief shall issue the permit for that well or proposed well within one hundred twenty days after the period for receipt of public comments has ended unless the chief denies the application by order.

(D) An (D)(1) Except as provided in division (D)(3) of this section, an applicant may file a request with the chief for expedited review of a permit application if the well is not or is not to be Sub.

219 Page136th 29G.A. As Passed by the Senate well is located denied the owner access to sample the water 801 well.

Thelocated sampling shall be conducted in accordancea withgas thestorage 802reservoir guidelinesor establishedreservoir inprotective "Bestarea, Managementas Practices"reservoir Forprotective Pre-area" 803is drillingdefined Water Sampling" in effectsection at1571.01 theof time that the 804Revised applicationCode. is submitted.

TheIf divisionthe shallwell furnishis thoseor 805is guidelinesto uponbe requestlocated andin a coal bearing township, the application shall makebe themaccompanied availableby onthe affidavit of the 806landowner division'sprescribed webin site.section 1509.08 of the Revised Code.

If(2) theIn chiefaddition determinesto a complete application for a permit that conditionsmeets atthe 807requirements of this section and the proposedpermit wellfee siteprescribed warrantby athis revision,section, thea chiefrequest mayfor reviseexpedited 808review theshall distancebe establishedaccompanied inby thisa divisionseparate fornonrefundable purposesfiling fee of pre-two 809hundred drillingfifty waterdollars. sampling.

810Upon (9)the Forfiling anof application for a permitrequest tofor drillexpedited areview, newthe wellchief 811shall withincause an urbanized area, a sworn statement that the applicantcounty 812engineer has provided notice by regular mail of the applicationcounty toin which the 813well owneris ofor eachis parcelto ofbe real property that is located withinto 814be fivenotified hundred feet of the surfacefiling location of the wellpermit application and to the 815request executivefor authorityexpedited ofreview theby municipaltelephone corporation or theother boardmeans ofthat 816in townshipthe trusteesjudgment of the township,chief aswill applicable,provide intimely whichnotice of the 817application welland isrequest. to be located.

InThe addition,chief the notice shall containissue a 818permit statement that informs an owner of real property who is required 819 to receive the notice under division (A)(9) of this section that 820 within fiveseven days of receipt of the notice,filing the owner is required 821 to provide notice under section 1509.60 of the Revisedrequest Codeunless tothe 822chief eachdenies residence in an occupied dwelling that is located on the 823application owner'sby parcelorder. of real property.

TheNotwithstanding noticethe shallprovisions containof athis 824section statementgoverning thatexpedited anreview applicationof haspermit beenapplications, filedthe withchief themay divisionrefuse 825to ofaccept oilrequests andfor gasexpedited resourcesreview management,if, identifyin the namechief's ofjudgment, the 826acceptance applicantof and the proposedrequests wellwould location,prevent include the nameissuance, andwithin 827twenty-one addressdays of thetheir division,filing, andof containpermits afor statementwhich thatapplications commentsare 828pending. regarding the application may be sent to the division.

The(3) 829No noticeowner mayshall beapply providedfor byan handexpedited deliverypermit orunder regularthis mail.section more than ten times within a calendar year.

TheAccordingly, 830the identitychief ofshall thenot ownersissue ofmore parcelsthan often realexpedited propertypermits shallto bean 831owner Sub.within a calendar year.

However, if an emergency requires that an expedited permit be issued, as determined by the chief, an owner that is otherwise prohibited from obtaining an expedited permit under this division may apply for an expedited permit and the chief may so issue it.

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

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

The issuance of a permit shall not be considered an order of the chief.

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

(G) Each application for a permit required by section 1509.05 of the Revised Code, except an application for a well drilled or reopened for purposes of section 1509.22 of the Revised Code, also shall be accompanied by a nonrefundable fee as follows:

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

(2) Seven hundred fifty dollars for a permit to conduct activities in a township with a Sub.

219 Page136th 30G.A. As Passed by the Senate determined using the tax records of the municipal corporation or 832 county in which a parcel of real property is located as of the 833 date of the notice.

834population (10) A plan for restoration of theten landthousand surfaceor disturbedmore, 835but byfewer drillingthan operations.fifteen thousand;

The(3) planOne shallthousand providedollars for compliancea 836permit withto theconduct restorationactivities requirementsin ofeither division (A) of section 837 1509.072 of the Revisedfollowing: Code and any rules adopted by the chief 838 pertaining to that restoration.

839(a) (11)(a) A descriptiontownship bywith namea orpopulation number of thefifteen county,thousand 840or township,more; and municipal corporation roads, streets, and highways 841 that the applicant anticipates will be used for access to and 842 egress from the well site;

843 (b) ForA an application for a permit for a horizontal well, 844 a copy of an agreement concerning maintenance and safe use of 845 the roads, streets, and highways described in division (A)(11) 846 (a) of this section entered into on reasonable terms with the 847 public official that has the legal authority to enter into such 848 maintenance and use agreements for each county, township, and 849 municipal corporation,corporation asregardless applicable, in which any such road, 850 street, or highway is located or an affidavit on a form 851 prescribed by the chief attesting that the owner attempted in 852 good faith to enter into an agreement under division (A)(11)(b) 853 of thispopulation. section with the applicable public official of each such 854 county, township, or municipal corporation, but that no 855 agreement was executed.

856(4) (c)If Anthe agreementapplication describedis infor divisiona (A)(11)(b)permit of this 857 section that isrequires enteredmandatory intopooling, onan oradditional afterfive thethousand effectivedollars. date of 858 this amendment shall be on terms expressly agreed upon by the 859 parties and shall expire not later than three years after the 860 agreement is executed.

SuchFor anpurposes agreementof maycalculating fee amounts, populations shall be reneweddetermined byusing the 861most Sub.recent federal decennial census.

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

B.(H)(1) Prior to the commencement of well pad construction and prior to the issuance of a permit to drill a proposed horizontal well or a proposed well that is to be located in an urbanized area, the division shall conduct a site review to identify and evaluate any site-specific terms and conditions that may be attached to the permit.

No.At the site review, a representative of the division shall consider fencing, screening, and landscaping requirements, if any, for similar structures in the community in which the well is proposed to be located.

219The Pageterms 31and Asconditions Passedthat byare theattached Senateto partiesthe forpermit upshall toinclude threethe yearsestablishment andof mayfencing, bescreening, subsequentlyand renewedlandscaping 862requirements indefinitely,for butthe eachsurface suchfacilities renewalof shallthe beproposed forwell, including a termtank notbattery toof 863the exceedwell. three years.

864(2) (12)Prior Suchto otherthe relevantissuance informationof asa permit to drill a proposed well, the chiefdivision 865shall prescribesconduct bya rule.review to identify and evaluate any site-specific terms and conditions that may be attached to the permit if the proposed well will be located in a one-hundred-year floodplain or within the five-year time of travel associated with a public drinking water supply.

866(I) EachA applicationpermit shall be accompaniedissued by a map, on a scale 867 not smaller than four hundred feet to the inch,chief preparedin byaccordance anwith 868this Ohiochapter. registered surveyor, showing the location of the well and 869 containing such other data as may be prescribed by the chief.

IfA 870permit theissued under this section for a well that is or is to be located withinin thean excavationsurbanized andarea 871 workings of a mine, the map also shall includebe thevalid locationfor oftwelve 872months, theand mine,all theother namepermits ofissued theunder mine,this andsection theshall namebe ofvalid thefor persontwenty-four 873months. operating the mine.

874(J) (B)An Theapplicant chiefor shalla causepermittee, aas copyapplicable, ofshall thesubmit weeklyto circularthe 875chief preparedan byupdate of the divisioninformation tothat beis providedrequired tounder thedivision county(A)(8)(a) engineerof 876this ofsection eachif countyany of that containsinformation activechanges orprior proposedto drillingcommencement 877of activity.production operations.

The(K) weeklyA circularpermittee shallor contain,a inpermittee's theauthorized mannerrepresentative 878shall prescribednotify byan theinspector chief,from the namesdivision ofat allleast applicantstwenty-four forhours, 879or permits,another thetime locationperiod ofagreed eachto wellby or proposed well, the 880chief's informationauthorized requiredrepresentative, byprior divisionto (A)(11)the commencement of thiswell section,pad construction and 881of anydrilling, additionalreopening, informationconverting, thewell chiefstimulation, prescribes.or plugback operations.

InSec. addition, 882 the chief promptly shall transfer an electronic copy, or if that 883 method is not available to a municipal corporation or township, 884 a copy via regular mail, of a drilling permit application to the 885 clerk of the legislative authority of the municipal corporation 886 or to the clerk of the township in which the well or proposed 887 well is or is to be located if the legislative authority of the 888 municipal corporation or the board of township trustees has 889 asked to receive copies of such applications and the appropriate 890 clerk has provided the chief an accurate, current electronic 891 Sub.

S.

B.

No.

219 Page 32 As Passed by the Senate mailing address.

892 (C)(1) Except as provided in division (C)(2) of this 893 section, the chief shall not issue a permit for at least ten 894 days after the date of filing of the application for the permit 895 unless, upon reasonable cause shown, the chief waives that 896 period or a request for expedited review is filed under this 897 section.

However, the chief shall issue a permit within twenty- 898 one days of the filing of the application unless the chief 899 denies the application by order.