Rep. John E. Bradley

Filed: 3/19/2013

 

 


 

 


 
09800HB2615ham003LRB098 10864 MGM 43552 a

1
AMENDMENT TO HOUSE BILL 2615

2    AMENDMENT NO. ______. Amend House Bill 2615 by replacing
3everything after the enacting clause with the following:
 
4
"ARTICLE 1.

 
5    Section 1-1. Short title. This Act may be cited as the
6Hydraulic Fracturing Regulatory Act.
 
7    Section 1-5. Definitions. For the purposes of this Act,
8unless the context otherwise requires:
9    "Agency" means the Illinois Environmental Protection
10Agency.
11    "Aquatic life" means all fish, reptiles, amphibians,
12crayfish, and mussels.
13    "Aquifer" means saturated (with groundwater) soils and
14geologic materials that are sufficiently permeable to readily
15yield economically useful quantities (at least 70 gallons per

 

 

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1minute) of fresh water to wells, springs, or streams under
2ordinary hydraulic gradients. "Aquifer" is limited to aquifers
3identified as major sand and gravel aquifers in the Illinois
4State Water Survey's Illinois Community Water Supply Wells map,
5Map Series 2006-01.
6    "Base fluid" means the continuous phase fluid type,
7including, but not limited to, water used in a high volume
8horizontal hydraulic fracturing operation.
9    "Board" means the Oil and Gas Well and Hydraulic Fracturing
10Contractor Licensing Board.
11    "BTEX" means benzene, toluene, ethylbenzene, and xylene.
12    "Chemical" means any element, chemical compound, or
13mixture of elements or compounds that has its own specific name
14or identity, such as a Chemical Abstracts Service number,
15regardless of whether the chemical is subject to the
16requirements of paragraph (2) of subsection (g) of 29 Code of
17Federal Regulations 1910.1200.
18    "Chemical Abstracts Service" means the division of the
19American Chemical Society that is the globally recognized
20authority for information on chemical substances.
21    "Chemical Abstracts Service number" or "CAS number" means
22the unique identification number assigned to a chemical by the
23Chemical Abstracts Service.
24    "Completion combustion device" means any ignition device,
25installed horizontally or vertically, used in exploration and
26production operations to combust otherwise vented emissions.

 

 

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1    "Delineation well" means a well drilled in order to
2determine the boundary of a field or producing reservoir.
3    "Department" means the Illinois Department of Natural
4Resources.
5    "Diesel" means a substance having any one of the following
6Chemical Abstracts Service Registry numbers: 68334-30-5;
768476-34-6; 68476-30-2; 68476-31-3; 8008-20-6; or 68410-00-4.
8"Diesel" includes any additional substances regulated by the
9United States Environmental Protection Agency as diesel fuel
10used in hydraulic fracturing activities under the federal Safe
11Drinking Water Act.
12    "Director" means the Director of Natural Resources.
13    "Enhanced oil recovery operation" means any secondary or
14tertiary recovery method used in an effort to recover
15hydrocarbons from a pool by injection of fluids, gases or other
16substances to maintain, restore, or augment natural reservoir
17energy, or by introducing gases, chemicals, other substances,
18or heat, or by in-situ combustion, or by any combination
19thereof.
20    "Flare" means a thermal oxidation system using an open,
21enclosed, or semi-enclosed flame. "Flare" does not include
22completion combustion devices as defined in this Section.
23    "Flowback period" means the process of allowing fluids to
24flow from a well following a treatment, either in preparation
25for a subsequent phase of treatment or in preparation for
26cleanup and returning the well to production. "Flowback period"

 

 

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1begins when the material the hydraulic fracturing fluid returns
2to the surface following hydraulic fracturing or
3re-fracturing. "Flowback period" ends with either well shut in
4or when the well is producing continuously to the flow line or
5to a storage vessel for collection, whichever occurs first.
6    "Fresh water" means surface and subsurface water in its
7natural state that is suitable for drinking water for human
8consumption, domestic livestock, irrigation, industrial,
9municipal and recreational purposes, that is capable of
10supporting aquatic life, and contains less than 10,000 ppm
11total dissolved solids.
12    "Gas" means all natural gas, including casinghead gas, and
13all other natural hydrocarbons not defined as oil.
14    "Groundwater" means any water below the land surface that
15is within the saturated zone or geologic materials where the
16fluid pressure in the pore space is equal to or greater than
17atmospheric pressure.
18    "Health professional" means a physician, physician
19assistant, nurse practitioner, a registered professional
20nurse, emergency medical technician, or other individual
21appropriately licensed or registered to provide health care
22services.
23    "High volume horizontal hydraulic fracturing operations"
24means all stages of a stimulation treatment of a horizontal
25well as defined by this Act by the pressurized application of
26more than 80,000 gallons per stage of hydraulic fracturing

 

 

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1fluid and proppant to initiate or propagate fractures in a
2geologic formation to enhance extraction or production of oil
3or gas.
4    "High volume horizontal hydraulic fracturing permit" means
5the permit issued by the Department under this Act allowing
6high volume horizontal hydraulic fracturing operations to
7occur at a well site.
8    "High volume horizontal hydraulic fracturing treatment"
9shall have the same definition as "High volume horizontal
10hydraulic fracturing operations".
11    "Horizontal well" means a well with a wellbore drilled
12laterally at an angle of at least 80 degrees to the vertical
13and with a horizontal projection exceeding 100 feet measured
14from the initial point of penetration into the productive
15formation through the terminus of the lateral in the same
16common source of hydrocarbon supply.
17    "Hydraulic fracturing additive" means any chemical
18substance or combination of chemicals, including, but not
19limited to, any chemical or proppant that is added to a base
20fluid for the purposes of preparing a hydraulic fracturing
21fluid for a high volume horizontal hydraulic fracturing
22operation.
23    "Hydraulic fracturing contractor" means a person who
24conducts high volume horizontal hydraulic fracturing
25operations for another person. "Hydraulic fracturing
26contractor" does not include the employee of a hydraulic

 

 

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1fracturing contractor.
2    "Hydraulic fracturing flowback" means all hydraulic
3fracturing fluid and other fluids that return to the surface
4after a stage of high volume horizontal hydraulic fracturing
5operations has been completed and prior to the well being
6placed in production.
7    "Hydraulic fracturing fluid" means the mixture of the base
8fluid and all the hydraulic fracturing additives, used to
9perform high volume horizontal hydraulic fracturing.
10    "Hydraulic fracturing string" means any pipe or casing
11string used for the transport of hydraulic fracturing fluids
12during the conduct of the high volume horizontal hydraulic
13fracturing operations.
14    "Intake" means a pipe or other means to withdraw raw water
15from a water source.
16    "Landowner" means the legal title holder or owner of real
17property and includes an owner of an undivided interest, a life
18tenant, a remainderman, a public or private corporation, a
19trustee under an active trust, and the holder of the beneficial
20interest under a land trust. "Landowner" does not include a
21mortgagee, a trustee under a trust deed in the nature of a
22mortgage, a lien holder, or a lessee.
23    "Low pressure well" means a well with reservoir pressure
24and vertical well depth such that 0.445 times the reservoir
25pressure (in psia) minus 0.038 times the vertical well depth
26(in feet) minus 67.578 psia is less than the flow line pressure

 

 

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1at the sales meter.
2    "Nature preserve" shall have the same meaning as provided
3in Section 3.11 of the Illinois Natural Areas Preservation Act.
4    "Oil" means natural crude oil or petroleum and other
5hydrocarbons, regardless of gravity, which are produced at the
6well in liquid form by ordinary production methods or by the
7use of an oil and gas separator and which are not the result of
8condensation of gas after it leaves the underground reservoir.
9    "Operator" means the individual or entity controlling the
10right to drill or produce a horizontal well in accordance with
11the requirements of the Illinois Oil and Gas Act.
12    "Owner" shall have the same meaning as provided in Section
131 of the Illinois Oil and Gas Act.
14    "Perennial stream" means a stream that has continuous flow
15in its stream bed during all of the calendar year.
16    "Permit" means a high volume horizontal hydraulic
17fracturing permit.
18    "Permittee" means a person holding a high volume horizontal
19hydraulic fracturing permit under this Act.
20    "Person" means any individual, partnership,
21co-partnership, firm, company, limited liability company,
22corporation, association, joint stock company, trust, estate,
23political subdivision, state agency, or any other legal entity
24or their legal representative, agent, or assigns.
25    "Pollution or diminution" means:
26        (1) in groundwater, any of the following:

 

 

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1            (A) detection of benzene or any other carcinogen in
2        any Class I, Class II, or Class III groundwater;
3            (B) detection of any constituent in item (i) of
4        subparagraph (A) of paragraph (3) of subsection (a) of
5        35 Ill. Adm. Code 620.310 equal to or above the listed
6        preventive response criteria in any Class I, Class II,
7        or Class III groundwater;
8            (C) detection of any constituent in 35 Ill. Adm.
9        Code 620.410 (a), (b), (c), (d) or (e) equal to or
10        above the listed standard in any Class I, Class II, or
11        Class III groundwater;
12            (D) detection of any constituent in Class III
13        groundwater equal to or above a standard established
14        under 35 Ill. Adm. Code 620.260; or
15            (E) detection of any constituent in Class I, Class
16        II, or Class III groundwater equal to or above a
17        cleanup objective listed in 35 Ill. Adm. Code 742.
18        (2) in surface water, exceeding any applicable numeric
19    or narrative standard in 35 Ill. Adm. Code Part 302 or Part
20    304.
21    "Produced water" means water, regardless of chloride and
22total dissolved solids content, that is produced in conjunction
23with oil or natural gas production or natural gas storage
24operations, but does not include hydraulic fracturing
25flowback.
26    "Proppant" means sand or any natural or man-made material

 

 

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1that is used during high volume horizontal hydraulic fracturing
2operations to prop open the artificially created or enhanced
3fractures.
4    "Public water supply" means all mains, pipes, and
5structures through which water is obtained and distributed to
6the public, including wells and well structures, intakes and
7cribs, pumping stations, treatment plants, reservoirs, and
8storage tanks and appurtenances, collectively or severally,
9actually used or intended for use for the purpose of furnishing
10water for drinking or general domestic use, and which serves at
11least 15 service connections or which regularly serves at least
1225 persons at least 60 days per year.
13    "Register of Land and Water Reserves" means the list of
14areas registered in accordance with Section 16 of the Illinois
15Natural Areas Preservation Act and Part 4010 of Title 17 of the
16Illinois Administrative Code.
17    "Release" means any spilling, leaking, pumping, pouring,
18emitting, emptying, discharging, injecting, escaping,
19leaching, dumping, or disposing into the environment.
20    "Serious violation" means any violation set forth in 62
21Ill. Adm. Code 240.140(c).
22    "Service connection" means the opening, including all
23fittings and appurtenances, at the water main through which
24water is supplied to the user.
25    "Surface water" means all water that is open to the
26atmosphere and subject to surface runoff.

 

 

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1    "Total water volume" means the total quantity of water from
2all sources used in the high volume horizontal hydraulic
3fracturing operations, including surface water, groundwater,
4produced water, or recycled water.
5    "True vertical depth" or "TVD" means the vertical distance
6from a depth in a planned or existing wellbore or well to a
7point at the surface.
8    "Water pollution" means any alteration of the physical,
9thermal, chemical, biological, or radioactive properties of
10any waters of the State, or the discharge of any contaminant
11into any water of the State, as will or is likely to create a
12nuisance or render the waters harmful, detrimental, or
13injurious to public health, safety, or welfare, or to domestic,
14commercial, industrial, agricultural, recreational, or other
15legitimate uses, or to livestock, wild animals, birds, or fish
16or other aquatic life.
17    "Water source" means (1) any existing water well or
18developed spring used for human or domestic animal consumption,
19or (2) any river, perennial stream, aquifer, natural or
20artificial lake, pond, wetland listed on the Register of Land
21and Water Reserves, or reservoir.
22    "Well" means any drill hole required to be permitted under
23the Illinois Oil and Gas Act.
24    "Well contractor" means a person who contracts to drill,
25construct, deepen, or convert a well where high volume
26horizontal hydraulic fracturing operations are planned or

 

 

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1occurring for another person.
2    "Well site" means surface areas, including the well,
3occupied by all equipment or facilities necessary for or
4incidental to high volume horizontal hydraulic fracturing
5operations, drilling, production, or plugging a well.
6    "Wildcat well" means a well outside known fields or the
7first well drilled in an oil or gas field where no other oil
8and gas production exists.
9    "Wildlife" means any bird or mammal that are by nature wild
10by way of distinction from those that are naturally tame and
11are ordinarily living unconfined in a state of nature without
12the care of man.
 
13    Section 1-10. Intergovernmental cooperation. The
14Department shall have the primary authority to administer the
15provisions of this Act. The Illinois State Geological Survey,
16the Illinois State Water Survey, the Office of the State Fire
17Marshal, and the Agency shall be advised of high volume
18horizontal hydraulic fracturing permit applications received
19by the Department and lend assistance as required by the
20provisions of this Act.
 
21    Section 1-15. Powers and duties.
22    (a) Except as otherwise provided, the Department shall
23enforce this Act and all rules and orders adopted in accordance
24with this Act.

 

 

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1    (b) Except as otherwise provided, the Department shall have
2jurisdiction and authority over all persons and property
3necessary to enforce the provisions of this Act effectively. In
4aid of this jurisdiction, the Director, or anyone designated in
5writing by the Director, shall have the authority to administer
6oaths and to issue subpoenas for the production of records or
7other documents and for the attendance of witnesses at any
8proceedings of the Department.
9    (c) The Department may authorize any employee of the
10Department, qualified by training and experience, to perform
11the powers and duties set forth in this Act.
12    (d) For the purpose of determining compliance with the
13provisions of this Act and any orders or rules entered or
14adopted under this Act, the Department shall have the right at
15all times to go upon and inspect properties where high volume
16horizontal hydraulic fracturing operations are being or have
17been conducted.
18    (e) The Department shall make any inquiries as it may deem
19proper to determine whether a violation of this Act or any
20orders or rules entered or adopted under this Act exists or is
21imminent. In the exercise of these powers, the Department shall
22have the authority to collect data; require testing and
23sampling; to make investigation and inspections; to examine
24properties, including records and logs; to examine, check, and
25test hydrocarbon wells; to hold hearings; to adopt
26administrative rules; and to take any action as may be

 

 

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1reasonably necessary to enforce this Act.
2    (f) Except as otherwise provided, the Department may
3specify the manner in which all information required to be
4submitted under this Act is submitted.
 
5    Section 1-20. Applicability. This Act applies to all wells
6where high volume horizontal hydraulic fracturing operations
7are planned, have occurred, or are occurring in this State. The
8provisions of this Act shall be in addition to the provisions
9of the Illinois Oil and Gas Act. However, if there is a
10conflict, the provisions of the Illinois Oil and Gas Act are
11superseded by this Act.
 
12    Section 1-25. Setbacks and prohibitions.
13    (a) Except as otherwise provided in this Section, no well
14site where high volume horizontal hydraulic fracturing
15operations are proposed, planned, or occurring may be located
16as follows. Unless specified otherwise, all distances shall be
17measured from the closest edge of the well site:
18        (1) within 500 feet measured horizontally from any
19    residence or place of worship unless the owner of the
20    residence or the governing body of the place of worship
21    otherwise expressly agrees in writing to a closer well
22    location;
23        (2) within 500 feet measured horizontally from the edge
24    of the property line from any school, hospital, or licensed

 

 

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1    nursing home facility;
2        (3) within 500 feet measured horizontally from the
3    surface location of any existing water well or developed
4    spring used for human or domestic animal consumption,
5    unless the owner or owners of the well or developed spring
6    otherwise expressly agrees or agree in writing to a closer
7    well location;
8        (4) within 300 feet measured horizontally from the
9    center of a perennial stream or from the ordinary high
10    water mark of any river, natural or artificial lake, pond,
11    or reservoir;
12        (5) within 750 feet of a nature preserve or a site on
13    the Register of Land and Water Reserves;
14        (6) within 1,500 feet of a surface water or groundwater
15    intake of a public water supply; the distance from the
16    public water supply as identified by the Department shall
17    be measured as follows:
18            (A) For a surface water intake on a lake or
19        reservoir, the distance shall be measured from the
20        intake point on the lake or reservoir.
21            (B) For a surface water intake on a flowing stream,
22        the distance shall be measured from a semicircular
23        radius extending upstream of the surface water intake.
24            (C) For a groundwater source, the distance shall be
25        measured from the surface location of the wellhead or
26        the ordinary high water mark of the spring.

 

 

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1    The distance restrictions under this subsection (a) shall
2be determined as conditions exist at the time of the submission
3of the permit application under this Act.
4    (b) Notwithstanding any other provision of this Section,
5the owner of a water source identified in paragraph (4) of
6subsection (a) of this Section that is wholly contained within
7the owner's property may expressly agree in writing to a closer
8well location.
9    (c) It is unlawful to inject or discharge hydraulic
10fracturing fluid, produced water, BTEX, diesel, or petroleum
11distillates into fresh water.
12    (d) It is unlawful to perform any high volume horizontal
13hydraulic fracturing operations by knowingly or recklessly
14injecting diesel.
 
15    Section 1-30. High volume horizontal hydraulic fracturing
16permit required.
17    (a) Notwithstanding any other provision of law, a person
18may not drill, deepen, or convert a horizontal well where high
19volume horizontal hydraulic fracturing operations are planned
20or occurring or convert a vertical well into a horizontal well
21where high volume horizontal hydraulic fracturing operations
22are planned in this State, unless the person has been issued a
23permit by the Department under this Act and has obtained all
24applicable authorizations required by the Illinois Oil and Gas
25Act.

 

 

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1    (b) If multiple wells are to be stimulated using high
2volume horizontal hydraulic fracturing operations from a
3single well site, then a separate permit shall be obtained for
4each well at the site.
 
5    Section 1-35. High volume horizontal hydraulic fracturing
6permit application.
7    (a) Every applicant for a permit under this Act shall first
8register with the Department at least 30 days before applying
9for a permit. The Department shall make available a
10registration form within 90 days after the effective date of
11this Act. The registration form shall require the following
12information:
13        (1) the name and address of the registrant and any
14    parent, subsidiary, or affiliate thereof;
15        (2) disclosure of all findings of a serious violation
16    or an equivalent violation under federal or state laws or
17    regulations in the development or operation of an oil or
18    gas exploration or production site via hydraulic
19    fracturing by the applicant or any parent, subsidiary, or
20    affiliate thereof within the previous 5 years; and
21        (3) proof of insurance to cover injuries, damages, or
22    loss related to pollution or diminution in the amount of at
23    least $5,000,000, from an insurance carrier authorized,
24    licensed, or permitted to do this insurance business in
25    this State that holds at least an A- rating by A.M. Best &

 

 

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1    Co. or any comparable rating service.
2    A registrant must notify the Department of any change in
3the information identified in paragraphs (1), (2), or (3) of
4this subsection (a) at least annually or upon request of the
5Department.
6    (b) Every applicant for a permit under this Act must submit
7the following information to the Department on an application
8form provided by the Department:
9        (1) the name and address of the applicant and any
10    parent, subsidiary, or affiliate thereof;
11        (2) the proposed well name and address and legal
12    description of the well site and its unit area;
13        (3) a statement whether the proposed location of the
14    well site is in compliance with the requirements of Section
15    1-25 of this Act and a plat, which shows the proposed
16    surface location of the well site, providing the distance
17    in feet, from the surface location of the well site to the
18    features described in subsection (a) of Section 1-25 of
19    this Act;
20        (4) a detailed description of the proposed well to be
21    used for the high volume horizontal hydraulic fracturing
22    operations including, but not limited to, the following
23    information:
24            (A) the approximate total depth to which the well
25        is to be drilled or deepened;
26            (B) the proposed angle and direction of the well;

 

 

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1            (C) the actual depth or the approximate depth at
2        which the well to be drilled deviates from vertical;
3            (D) the angle and direction of any nonvertical
4        portion of the wellbore until the well reaches its
5        total target depth or its actual final depth; and
6            (E) the estimated length and direction of the
7        proposed horizontal lateral or wellbore;
8        (5) the estimated depth and elevation, according to the
9    most recent publication of the Illinois State Geological
10    Survey of Groundwater for the location of the well, of the
11    lowest potential fresh water along the entire length of the
12    proposed wellbore;
13        (6) a detailed description of the proposed high volume
14    horizontal hydraulic fracturing operations, including, but
15    not limited to, the following:
16            (A) the formation affected by the high volume
17        horizontal hydraulic fracturing operations, including,
18        but not limited to, geologic name and geologic
19        description of the formation that will be stimulated by
20        the operation;
21            (B) the anticipated surface treating pressure
22        range;
23            (C) the maximum anticipated injection treating
24        pressure;
25            (D) the estimated or calculated fracture pressure
26        of the producing and confining zones; and

 

 

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1            (E) the planned depth of all proposed perforations
2        or depth to the top of the open hole section;
3        (7) plat showing all known previous well bores within
4    750 feet of any part of the horizontal well bore that
5    penetrated within 400 vertical feet of the formation that
6    will be stimulated as part of the high volume horizontal
7    hydraulic fracturing operations;
8        (8) unless the applicant documents why the information
9    is not available at the time the application is submitted,
10    a chemical disclosure report identifying each chemical and
11    proppant anticipated to be used in hydraulic fracturing
12    fluid for each stage of the hydraulic fracturing operations
13    including the following:
14            (A) the total volume of water anticipated to be
15        used in the hydraulic fracturing treatment of the well
16        or the type and total volume of the base fluid
17        anticipated to be used in the hydraulic fracturing
18        treatment, if something other than water;
19            (B) each hydraulic fracturing additive anticipated
20        to be used in the hydraulic fracturing fluid, including
21        the trade name, vendor, a brief descriptor of the
22        intended use or function of each hydraulic fracturing
23        additive, and the Material Safety Data Sheet (MSDS), if
24        applicable;
25            (C) each chemical anticipated to be intentionally
26        added to the base fluid, including for each chemical,

 

 

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1        the Chemical Abstracts Service number, if applicable;
2        and
3            (D) the anticipated concentration in the base
4        fluid, in percent by mass, of each chemical to be
5        intentionally added to the base fluid;
6        (9) a certification of compliance with the Water Use
7    Act of 1983 and applicable regional water supply plans;
8        (10) a fresh water withdrawal and management plan that
9    shall include the following information:
10            (A) the source of the water, such as surface or
11        groundwater, anticipated to be used for water
12        withdrawals, and the anticipated withdrawal location;
13            (B) the anticipated volume and rate of each water
14        withdrawal from each withdrawal location;
15            (C) the anticipated months when water withdrawals
16        shall be made from each withdrawal location;
17            (D) the methods to be used to minimize water
18        withdrawals as much as feasible; and
19            (E) the methods to be used for surface water
20        withdrawals to minimize adverse impact to aquatic
21        life.
22            Where a surface water source is wholly contained
23        within a single property, and the owner of the property
24        expressly agrees in writing to its use for water
25        withdrawals, the applicant is not required to include
26        this surface water source in the fresh water withdrawal

 

 

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1        and management plan.
2        (11) a plan for the handling, storage, transportation,
3    and disposal or reuse of hydraulic fracturing fluids and
4    hydraulic fracturing flowback. The plan shall identify the
5    specific Class II injection well or wells that will be used
6    to dispose of the hydraulic fracturing flowback. The plan
7    shall describe the capacity of the tanks to be used for the
8    capture and storage of flowback and of the lined reserve
9    pit to be used, if necessary, to temporarily store any
10    flowback in excess of the capacity of the tanks.
11    Identification of the Class II injection well or wells
12    shall be by name, identification number, and specific
13    location and shall include the date of the most recent
14    mechanical integrity test for each Class II injection well;
15        (12) a well site safety plan to address proper safety
16    measures to be employed during high volume horizontal
17    hydraulic fracturing operations for the protection of
18    persons on the site as well as the general public. Within
19    15 calendar days after submitting the permit application to
20    the Department, the applicant must provide a copy of the
21    plan to the county or counties in which hydraulic
22    fracturing operations will occur. Within 5 calendar days of
23    its receipt, the Department shall provide a copy of the
24    well site safety plan to the Office of the State Fire
25    Marshal;
26        (13) a containment plan describing the containment

 

 

09800HB2615ham003- 22 -LRB098 10864 MGM 43552 a

1    practices and equipment to be used and the area of the well
2    site where containment systems will be employed, and within
3    5 calendar days of its receipt, the Department shall
4    provide a copy of the containment plan to the Office of the
5    State Fire Marshal;
6        (14) a casing and cementing plan that describes the
7    casing and cementing practices to be employed, including
8    the size of each string of pipe, the starting point, and
9    depth to which each string is to be set and the extent to
10    which each string is to be cemented;
11        (15) a traffic management plan that identifies the
12    anticipated roads, streets, and highways that will be used
13    for access to and egress from the well site. The traffic
14    management plan will include a point of contact to discuss
15    issues related to traffic management. Within 15 calendar
16    days after submitting the permit application to the
17    Department, the applicant must provide a copy of the
18    traffic management plan to the county or counties in which
19    the well site is located, and within 5 calendar days of its
20    receipt, the Department shall provide a copy of the traffic
21    management plan to the Office of the State Fire Marshal;
22        (16) the names and addresses of all owners of any real
23    property within 1,500 feet of the proposed well site, as
24    disclosed by the records in the office of the recorder of
25    the county or counties;
26        (17) drafts of the specific public notice and general

 

 

09800HB2615ham003- 23 -LRB098 10864 MGM 43552 a

1    public notice as required by Section 1-40 of this Act;
2        (18) statement that the well site at which the high
3    volume horizontal hydraulic fracturing operation will be
4    conducted will be restored in compliance with Section
5    240.1181 of Title 62 of the Illinois Administrative Code
6    and Section 1-95 of this Act;
7        (19) proof of insurance to cover injuries, damages, or
8    loss related to pollution in the amount of at least
9    $5,000,000; and
10        (20) any other relevant information which the
11    Department may, by rule, require.
12    (c) Where an application is made to conduct high volume
13horizontal fracturing operations at a well site located within
14the limits of any city, village, or incorporated town, the
15application shall state the name of the city, village, or
16incorporated town and be accompanied with a certified copy of
17the official consent for the hydraulic fracturing operations to
18occur from the municipal authorities where the well site is
19proposed to be located. No permit shall be issued unless
20consent is secured and filed with the permit application. In
21the event that an amended location is selected, the original
22permit shall not be valid unless a new certified consent is
23filed for the amended location.
24    (d) The hydraulic fracturing permit application shall be
25accompanied by a bond as required by subsection (a) of Section
261-65 of this Act.

 

 

09800HB2615ham003- 24 -LRB098 10864 MGM 43552 a

1    (e) Each application for a permit under this Act shall
2include payment of a non-refundable fee of $13,500. Of this
3fee, $11,000 shall be deposited into the Mines and Minerals
4Regulatory Fund for the Department to use to administer and
5enforce this Act and otherwise support the operations and
6programs of the Office of Mines and Minerals. The remaining
7$2,500 shall be deposited into the Illinois Clean Water Fund
8for the Agency to use to carry out its functions under this
9Act. The Department shall not initiate its review of the permit
10application until the applicable fee under this subsection (e)
11has been submitted to and received by the Department.
12    (f) Each application submitted under this Act shall be
13signed, under the penalty of perjury, by the applicant or the
14applicant's designee who has been vested with the authority to
15act on behalf of the applicant and has direct knowledge of the
16information contained in the application and its attachments.
17Any person signing an application shall also sign an affidavit
18with the following certification:
19        "I certify, under penalty of perjury as provided by law
20    and under penalty of refusal, suspension, or revocation of
21    a high volume horizontal hydraulic fracturing permit, that
22    this application and all attachments are true, accurate,
23    and complete to the best of my knowledge.".
24    (g) The permit application shall be submitted to the
25Department in both electronic and hard copy format. The
26electronic format shall be searchable.

 

 

09800HB2615ham003- 25 -LRB098 10864 MGM 43552 a

1    (h) The application for a high volume horizontal hydraulic
2fracturing permit may be submitted as a combined permit
3application with the operator's application to drill on a form
4as the Department shall prescribe. The combined application
5must include the information required in this Section. If the
6operator elects to submit a combined permit application,
7information required by this Section that is duplicative of
8information required for an application to drill is only
9required to be provided once as part of the combined
10application. The submission of a combined permit application
11under this subsection shall not be interpreted to relieve the
12applicant or the Department from complying with the
13requirements of this Act or the Illinois Oil and Gas Act.
14    (i) Upon receipt of a permit application, the Department
15shall have no more than 60 calendar days from the date it
16receives the permit application to approve, with any conditions
17the Department may find necessary, or reject the application
18for the high volume horizontal hydraulic fracturing permit. The
19applicant may waive, in writing, the 60-day deadline upon its
20own initiative or in response to a request by the Department.
21    (j) If at any time during the review period the Department
22determines that the permit application is not complete under
23this Act, does not meet the requirements of this Section, or
24requires additional information, the Department shall notify
25the applicant in writing of the application's deficiencies and
26allow the applicant to correct the deficiencies and provide the

 

 

09800HB2615ham003- 26 -LRB098 10864 MGM 43552 a

1Department any information requested to complete the
2application. If the applicant fails to provide adequate
3supplemental information within the review period, the
4Department may reject the application.
 
5    Section 1-40. Public notice.
6    (a) Within 5 calendar days after the Department's receipt
7of the high volume horizontal hydraulic fracturing
8application, the Department shall post notice of its receipt
9and a copy of the permit application on its website. The notice
10shall include the dates of the public comment period and
11directions for interested parties to submit comments.
12    (b) Within 5 calendar days after the Department's receipt
13of the permit application and notice to the applicant that the
14high volume horizontal hydraulic fracturing permit application
15was received, the Department shall provide the Agency, the
16Office of the State Fire Marshal, Illinois State Water Survey,
17and Illinois State Geological Survey with notice of the
18application.
19    (c) The applicant shall provide the following public
20notice:
21        (1) Applicants shall mail specific public notice by
22    U.S. Postal Service certified mail, return receipt
23    requested, within 3 calendar days after submittal of the
24    high volume horizontal hydraulic fracturing permit
25    application to the Department, to all persons identified as

 

 

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1    owners of real property within 1,500 feet of the proposed
2    well site, as disclosed by the records in the office of the
3    recorder of the county or counties, and to each
4    municipality and county in which the well site is proposed
5    to be located.
6        (2) Except as otherwise provided in this paragraph (2)
7    of subsection (c), applicants shall provide general public
8    notice by publication, once each week for 2 consecutive
9    weeks, beginning no later than 3 calendar days after
10    submittal of the high volume horizontal hydraulic
11    fracturing permit application to the Department, in a
12    newspaper of general circulation published in each county
13    where the well proposed for high volume hydraulic
14    fracturing operations is proposed to be located.
15        If a well is proposed for high volume hydraulic
16    fracturing operations in a county where there is no daily
17    newspaper of general circulation, applicant shall provide
18    general public notice, by publication, once each week for 2
19    consecutive weeks, in a weekly newspaper of general
20    circulation in that county beginning as soon as the
21    publication schedule of the weekly newspaper permits, but
22    in no case later than 10 days after submittal of the high
23    volume hydraulic fracturing permit application to the
24    Department.
25        (3) The specific and general public notices required
26    under this subsection shall contain the following

 

 

09800HB2615ham003- 28 -LRB098 10864 MGM 43552 a

1    information:
2            (A) the name and address of the applicant;
3            (B) the date the application for a high volume
4        horizontal hydraulic fracturing permit was filed;
5            (C) the dates for the public comment period and a
6        statement that anyone may file written comments about
7        any portion of the applicant's submitted high volume
8        horizontal hydraulic fracturing permit application
9        with the Department during the public comment period;
10            (D) the proposed well name, reference number
11        assigned by the Department, and the address and legal
12        description of the well site and its unit area;
13            (E) a statement that the information filed by the
14        applicant in their application for a high volume
15        horizontal hydraulic fracturing permit is available
16        from the Department through its website;
17            (F) the Department's website and the address and
18        telephone number for the Department's Oil and Gas
19        Division;
20            (G) a statement that any person having an interest
21        that is or may be adversely affected, any government
22        agency that is or may be affected, or the county board
23        of a county to be affected under a proposed permit, may
24        file written objections to a permit application and may
25        request a public hearing.
26    (d) After providing the public notice as required under

 

 

09800HB2615ham003- 29 -LRB098 10864 MGM 43552 a

1paragraph (2) of subsection (c) of this Section, the applicant
2shall supplement its permit application by providing the
3Department with a certification and documentation that the
4applicant fulfilled the public notice requirements of this
5Section. The Department shall not issue a permit until the
6applicant has provided the supplemental material required
7under this subsection.
8    (e) If multiple applications are submitted at the same time
9for wells located on the same well site, the applicant may use
10one public notice for all applications provided the notice is
11clear that it pertains to multiple applications and conforms to
12the requirements of this Section. Notice shall not constitute
13standing for purposes of requesting a public hearing or for
14standing to appeal the decision of the Department in accordance
15with the Administrative Review Law.
 
16    Section 1-45. Public comment periods.
17    (a) The public comment period shall begin 7 calendar days
18after the Department's receipt of the permit application and
19last for 30 calendar days.
20    (b) Where a public hearing is conducted under Section 1-50
21of this Act, the Department may provide for an additional
22public comment period of 15 days as necessary to allow for
23comments in response to evidence and testimony presented at the
24hearing. The additional public comment period shall begin on
25the day after the public hearing.

 

 

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1    (c) During any public comment period, any person may file
2written comments to the Department concerning any portion of
3the permit application and any issue relating to the
4applicant's compliance with the requirements of the Act and any
5other applicable laws.
6    (d) The Department may request that the applicant respond
7to any substantive public comments obtained during the public
8comment period.
 
9    Section 1-50. High volume horizontal hydraulic fracturing
10permit; hearing.
11    (a) When a permit application is submitted to conduct high
12volume horizontal hydraulic fracturing operations for the
13first time at a particular well site, any person having an
14interest that is or may be adversely affected, any government
15agency that is or may be affected, or the county board of a
16county to be affected under a proposed permit, may file written
17objections to the permit application and may request a public
18hearing during the public comment period established under
19subsection (a) of Section 1-45 of this Act. The request for
20hearing shall contain a short and plain statement identifying
21the person and stating facts demonstrating that the person has
22an interest that is or may be adversely affected. The
23Department shall hold a public hearing upon a request under
24this subsection, unless the request is determined by the
25Department to (i) lack an adequate factual statement that the

 

 

09800HB2615ham003- 31 -LRB098 10864 MGM 43552 a

1person is or may be adversely affected or (ii) be frivolous.
2    (b) Prior to the commencement of a public hearing under
3this Section, any person who could have requested the hearing
4under subsection (a) of this Section may petition the
5Department to participate in the hearing in the same manner as
6the party requesting the hearing. The petition shall contain a
7short and plain statement identifying the petitioner and
8stating facts demonstrating that the petitioner is a person
9having an interest that is or may be adversely affected. The
10petitioner shall serve the petition upon the Department. Unless
11the Department determines that the petition is frivolous, or
12that the petitioner has failed to allege facts in support of an
13interest that is or may be adversely affected, the petitioner
14shall be allowed to participate in the hearing in the same
15manner as the party requesting the hearing.
16    (c) The public hearing to be conducted under this Section
17shall comply with the contested case requirements of the
18Illinois Administrative Procedure Act. The Department shall
19establish rules and procedures to determine whether any request
20for a public hearing may be granted in accordance with
21subsection (a) of this Section, and for the notice and conduct
22of the public hearing. These procedural rules shall include
23provisions for reasonable notice to (i) the public and (ii) all
24parties to the proceeding, which include the applicant, the
25persons requesting the hearing, and the persons granted the
26right to participate in the hearing pursuant to subsection (b)

 

 

09800HB2615ham003- 32 -LRB098 10864 MGM 43552 a

1of this Section, for the qualifications, powers, and
2obligations of the hearing officer, and for reasonable
3opportunity for all the parties to provide evidence and
4argument, to respond by oral or written testimony to statements
5and objections made at the public hearing, and for reasonable
6cross-examination of witnesses. County boards and the public
7may present their written objections or recommendations at the
8public hearing. A complete record of the hearings and all
9testimony shall be made by the Department and recorded
10stenographically or electronically. The complete record shall
11be maintained and shall be accessible to the public on the
12Department's website until final release of the applicant's
13performance bond.
14    (d) At least 10 calendar days before the date of the public
15hearing, the Department shall publish notice of the public
16hearing in a newspaper of general circulation published in the
17county where the proposed well site will be located.
 
18    Section 1-53. High volume horizontal hydraulic fracturing
19permit; determination; judicial review.
20    (a) The Department shall issue a high volume horizontal
21hydraulic fracturing permit, with any conditions the
22Department may find necessary, only if the record of decision
23demonstrates that:
24        (1) the well location restrictions of Section 1-25 of
25    this Act have been satisfied;

 

 

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1        (2) the application meets the requirements of Section
2    1-35 of this Act;
3        (3) the plans required to be submitted with the
4    application under Section 1-35 of this Act are adequate and
5    effective;
6        (4) the proposed hydraulic fracturing operations will
7    be conducted in a manner that will protect the public
8    health and safety and prevent pollution or diminution of
9    any water source;
10        (5) the work plan required under Section 1-80 of this
11    Act has been submitted to the Department;
12        (6) the applicant or any parent, subsidiary, or
13    affiliate thereof has not failed to abate a violation of
14    this Act or the Illinois Oil and Gas Act;
15        (7) the Class II injection wells to be used for
16    disposal of hydraulic fracturing flowback comply with all
17    applicable requirements for mechanical integrity testing,
18    including that the well has been tested within the previous
19    5 years; and
20        (8) there is no good cause to deny the permit under
21    subsection (a) of Section 1-60 of this Act.
22    (b) For the purpose of determining whether to issue a
23permit, the Department shall consider and the Department's
24record of decision shall include:
25        (1) the application for the high volume horizontal
26    hydraulic fracturing permit, including all documentation

 

 

09800HB2615ham003- 34 -LRB098 10864 MGM 43552 a

1    required by Section 1-35 of this Act;
2        (2) all written comments received during the public
3    comment periods and, if applicable, the complete record
4    from the public hearing held under Section 1-50 of this
5    Act;
6        (3) all information provided by the applicant in
7    response to any public comments; and
8        (4) any information known to the Department as the
9    public entity responsible for regulating high volume
10    horizontal hydraulic fracturing operations, including, but
11    not limited to, inspections of the proposed well site as
12    necessary to ensure adequate review of the application.
13    (c) The Department shall, by U.S. Mail and electronic
14transmission, provide the applicant with a copy of the high
15volume horizontal hydraulic fracturing permit as issued or its
16final administrative decision denying the permit to the
17applicant and shall, by U.S. Mail or electronic transmission,
18provide a copy of the permit as issued or the final
19administrative decision to any person or unit of local
20government who received specific public notice under Section
211-40 of this Act or submitted comments or participated in any
22public hearing under Section 1-50 of this Act.
23    (d) The Department's decision to approve or deny a high
24volume horizontal hydraulic fracturing permit shall be
25considered a final administrative decision subject to judicial
26review under the Administrative Review Law and the rules

 

 

09800HB2615ham003- 35 -LRB098 10864 MGM 43552 a

1adopted under that Law.
2    (e) Following completion of the Department's review and
3approval process, the Department's website shall indicate
4whether an individual high volume horizontal hydraulic
5fracturing permit was approved or denied and provide a copy of
6the approval or denial.
 
7    Section 1-55. High volume horizontal hydraulic fracturing
8permit; conditions; restriction; modifications.
9    (a) Each permit issued by the Department under this Act
10shall require the permittee to comply with all provisions of
11this Act and all other applicable local, State, and federal
12laws, rules, and regulations in effect at the time the permit
13is issued. All plans submitted with the application under
14Section 1-35 shall be conditions of the permit.
15    (b) A permit issued under this Act shall continue in effect
16until plugging and restoration in compliance with this Act and
17the Illinois Oil and Gas Act are completed to the Department's
18satisfaction. No permit may be transferred to another person
19without approval of the Department.
20    (c) No permit issued under this Act may be modified without
21approval of the Department. If the Department determines that
22the proposed modifications constitute a significant deviation
23from the terms of the original application and permit approval,
24or presents a serious risk to public health, life, property,
25aquatic life, or wildlife, the Department shall provide the

 

 

09800HB2615ham003- 36 -LRB098 10864 MGM 43552 a

1opportunities for notice, comment, and hearing required under
2Sections 1-45 and 1-50 of this Act. The Department shall
3provide notice of the proposed modification and opportunity for
4comment and hearing to the persons who received specific public
5notice under Section 1-40 of this Act and shall publish the
6notice and the proposed modification on its website. The
7Department shall adopt rules regarding procedures for a permit
8modification.
 
9    Section 1-60. High volume horizontal hydraulic fracturing
10permit; denial, suspension, or revocation.
11    (a) The Department may suspend, revoke, or refuse to issue
12a high volume horizontal hydraulic fracturing permit under this
13Act for one or more of the following causes:
14        (1) providing incorrect, misleading, incomplete, or
15    materially untrue information in a permit application or
16    any document required to be filed with the Department;
17        (2) violating any condition of the permit;
18        (3) violating any provision of or any regulation
19    adopted under this Act or the Illinois Oil and Gas Act;
20        (4) using fraudulent, coercive, or dishonest
21    practices, or demonstrating incompetence,
22    untrustworthiness, or financial irresponsibility in the
23    conduct of business in this State or elsewhere;
24        (5) having a high volume horizontal hydraulic
25    fracturing permit, or its equivalent, revoked in any other

 

 

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1    state, province, district, or territory for incurring a
2    material or major violation or using fraudulent or
3    dishonest practices; or
4        (6) an emergency condition exists under which conduct
5    of the high volume horizontal hydraulic fracturing
6    operations would pose a significant hazard to public
7    health, aquatic life, wildlife, or the environment.
8    (b) In every case in which a permit is suspended or
9revoked, the Department shall serve notice of its action,
10including a statement of the reasons for the action, either
11personally or by certified mail, receipt return requested, to
12the permittee.
13    (c) The order of suspension or revocation of a permit shall
14take effect upon issuance of the order. The permittee may
15request, in writing, within 30 days after the date of receiving
16the notice, a hearing. Except as provided under subsection (d)
17of this Section, in the event a hearing is requested, the order
18shall remain in effect until a final order is entered pursuant
19to the hearing.
20    (d) The order of suspension or revocation of a permit may
21be stayed if requested by the permittee and evidence is
22submitted demonstrating that there is no significant threat to
23the public health, aquatic life, wildlife, or the environment
24if the operation is allowed to continue.
25    (e) The hearing shall be held at a time and place
26designated by the Department. The Director of the Department or

 

 

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1any administrative law judge designated by him or her have the
2power to administer oaths and affirmations, subpoena witnesses
3and compel their attendance, take evidence, and require the
4production of books, papers, correspondence, and other records
5or information that he or she considers relevant or material.
6    (f) The costs of the administrative hearing shall be set by
7rule and shall be borne by the permittee.
8    (g) The Department's decision to suspend or revoke a high
9volume horizontal hydraulic fracturing permit is subject to
10judicial review under the Administrative Review Law.
 
11    Section 1-65. Hydraulic fracturing permit; bonds.
12    (a) An applicant for a high volume horizontal hydraulic
13fracturing permit under this Act shall provide a bond, executed
14by a surety authorized to transact business in this State. The
15bond shall be in the amount of $50,000 per permit or a blanket
16bond of $500,000 for all permits. If the applicant is required
17to submit a bond to the Department under the Illinois Oil and
18Gas Act, the applicant's submission of a bond under this
19Section shall satisfy the bonding requirements provided for in
20the Illinois Oil and Gas Act. In lieu of a bond, the applicant
21may provide other collateral securities such as cash,
22certificates of deposit, or irrevocable letters of credit under
23the terms and conditions as the Department may provide by rule.
24    (b) The bond or other collateral securities shall remain in
25force until the well is plugged and abandoned. Upon abandoning

 

 

09800HB2615ham003- 39 -LRB098 10864 MGM 43552 a

1a well to the satisfaction of the Department and in accordance
2with the Illinois Oil and Gas Act, the bond or other collateral
3securities shall be promptly released by the Department. Upon
4the release by the Department of the bond or other collateral
5securities, any cash or collateral securities deposited shall
6be returned by the Department to the applicant who deposited
7it.
8    (c) If, after notice and hearing, the Department determines
9that any of the requirements of this Act or rules adopted under
10this Act or the orders of the Department have not been complied
11with within the time limit set by any notice of violation
12issued under this Act, the permittee's bond or other collateral
13securities shall be forfeited. Forfeiture under this
14subsection shall not limit any duty of the permittee to
15mitigate or remediate harms or foreclose enforcement by the
16Department or the Agency. In no way will payment under this
17bond exceed the aggregate penalty as specified.
18    (d) When any bond or other collateral security is forfeited
19under the provisions of this Act or rules adopted under this
20Act, the Department shall collect the forfeiture without delay.
21The surety shall have 30 days to submit payment for the bond
22after receipt of notice by the permittee of the forfeiture.
23    (e) All forfeitures shall be deposited in the Mines and
24Minerals Regulatory Fund to be used, as necessary, to mitigate
25or remediate violations of this Act or rules adopted under this
26Act.
 

 

 

09800HB2615ham003- 40 -LRB098 10864 MGM 43552 a

1    Section 1-70. Well preparation, construction, and
2drilling.
3    (a) This Section shall apply to all horizontal wells that
4are to be completed using high volume horizontal hydraulic
5fracturing operations under a high volume horizontal hydraulic
6fracturing permit. The requirements of this Section shall be in
7addition to any other laws or rules regarding wells and well
8sites.
9    (b) Site preparation standards shall be as follows:
10        (1) The access road to the well site must be located in
11    accordance with access rights identified in the Illinois
12    Oil and Gas Act and located as far as practical from
13    occupied structures, places of assembly, and property
14    lines of unleased property.
15        (2) Unless otherwise approved or directed by the
16    Department, all topsoil stripped to facilitate the
17    construction of the well pad and access roads must be
18    stockpiled, stabilized, and remain on site for use in
19    either partial or final reclamation. In the event it is
20    anticipated that the final reclamation shall take place in
21    excess of one year from drilling the well the topsoil may
22    be disposed of in any lawful manner provided the operator
23    reclaims the site with topsoil of similar characteristics
24    of the topsoil removed.
25        (3) Piping, conveyances, valves, and tanks in contact

 

 

09800HB2615ham003- 41 -LRB098 10864 MGM 43552 a

1    with hydraulic fracturing fluid, hydraulic fracturing
2    flowback, or produced water must be constructed of
3    materials compatible with the composition of the hydraulic
4    fracturing fluid, hydraulic fracturing flowback, and
5    produced water.
6    (c) Site maintenance standards shall be as follows:
7        (1) Secondary containment is required for all fueling
8    tanks.
9        (2) Fueling tanks shall be subject to Section 1-25 of
10    this Act.
11        (3) Fueling tank filling operations shall be
12    supervised at the fueling truck and at the tank if the tank
13    is not visible to the fueling operator from the truck.
14        (4) Troughs, drip pads, or drip pans are required
15    beneath the fill port of a fueling tank during filling
16    operations if the fill port is not within the secondary
17    containment required by paragraph (1) of this subsection.
18    (d) All wells shall be constructed, and casing and
19cementing activities shall be conducted, in a manner that shall
20provide for control of the well at all times, prevent the
21migration of oil, gas, and other fluids into the fresh water
22and coal seams, and prevent pollution or diminution of fresh
23water. In addition to any of the Department's casing and
24cementing requirements, the following shall apply:
25        (1) All casings must conform to the current industry
26    standards published by the American Petroleum Institute.

 

 

09800HB2615ham003- 42 -LRB098 10864 MGM 43552 a

1        (2) Casing thread compound and its use must conform to
2    the current industry standards published by the American
3    Petroleum Institute.
4        (3) Surface casing shall be centralized at the shoe,
5    above and below a stage collar or diverting tool, if run,
6    and through usable-quality water zones. In non-deviated
7    holes, pipe centralization as follows is required: a
8    centralizer shall be placed every fourth joint from the
9    cement shoe to the ground surface or to the bottom of the
10    cellar. All centralizers shall meet specifications in, or
11    equivalent to, API spec 10D, Specification for Bow-Spring
12    Casing Centralizers; API Spec 10 TR4, Technical Report on
13    Considerations Regarding Selection of Centralizers for
14    Primary Cementing Operations; and API RP 10D-2,
15    Recommended Practice for Centralizer Placement and Stop
16    Collar Testing. The Department may require additional
17    centralization as necessary to ensure the integrity of the
18    well design is adequate. All centralizers must conform to
19    the current industry standards published by the American
20    Petroleum Institute.
21        (4) Cement must conform to current industry standards
22    published by the American Petroleum Institute and the
23    cement slurry must be prepared to minimize its free water
24    content in accordance with the current industry standards
25    published by the American Petroleum Institute; the cement
26    must also:

 

 

09800HB2615ham003- 43 -LRB098 10864 MGM 43552 a

1            (A) secure the casing in the wellbore;
2            (B) isolate and protect fresh groundwater;
3            (C) isolate abnormally pressured zones, lost
4        circulation zones, and any potential flow zones
5        including hydrocarbon and fluid-bearing zones;
6            (D) properly control formation pressure and any
7        pressure from drilling, completion and production;
8            (E) protect the casing from corrosion and
9        degradation; and
10            (F) prevent gas flow in the annulus.
11        (5) Prior to cementing any casing string, the borehole
12    must be circulated and conditioned to ensure an adequate
13    cement bond.
14        (6) A pre-flush or spacer must be pumped ahead of the
15    cement.
16        (7) The cement must be pumped at a rate and in a flow
17    regime that inhibits channeling of the cement in the
18    annulus.
19        (8) Cement compressive strength tests must be
20    performed on all surface, intermediate, and production
21    casing strings; after the cement is placed behind the
22    casing, the operator shall wait on cement to set until the
23    cement achieves a calculated compressive strength of at
24    least 500 pounds per square inch, and a minimum of 8 hours
25    before the casing is disturbed in any way, including
26    installation of a blowout preventer. The cement shall have

 

 

09800HB2615ham003- 44 -LRB098 10864 MGM 43552 a

1    a 72-hour compressive strength of at least 1,200 psi, and
2    the free water separation shall be no more than 6
3    milliliters per 250 milliliters of cement, tested in
4    accordance with current American petroleum Institute
5    standards.
6        (9) A copy of the cement job log for any cemented
7    casing string in the well shall be maintained in the well
8    file and available to the Department upon request.
9        (10) Surface casing shall be used and set to a depth of
10    at least 200 feet, or 100 feet below the base of the
11    deepest fresh water, whichever is deeper, but no more than
12    200 feet below the base of the deepest fresh water and
13    prior to encountering any hydrocarbon-bearing zones. The
14    surface casing must be run and cemented as soon as
15    practicable after the hole has been adequately circulated
16    and conditioned.
17        (11) The Department must be notified at least 24 hours
18    prior to surface casing cementing operations. Surface
19    casing must be fully cemented to the surface with excess
20    cements. Cementing must be by the pump and plug method with
21    a minimum of 25% excess cement with appropriate lost
22    circulation material, unless another amount of excess
23    cement is approved by the Department. If cement returns are
24    not observed at the surface, the operator must perform
25    remedial actions as appropriate.
26        (12) Intermediate casing must be installed when

 

 

09800HB2615ham003- 45 -LRB098 10864 MGM 43552 a

1    necessary to isolate fresh water not isolated by surface
2    casing and to seal off potential flow zones, anomalous
3    pressure zones, lost circulation zones and other drilling
4    hazards.
5        Intermediate casing must be set to protect fresh water
6    if surface casing was set above the base of the deepest
7    fresh water, if additional fresh water was found below the
8    surface casing shoe, or both. Intermediate casing used to
9    isolate fresh water must not be used as the production
10    string in the well in which it is installed, and may not be
11    perforated for purposes of conducting a hydraulic fracture
12    treatment through it.
13        When intermediate casing is installed to protect fresh
14    water, the operator shall set a full string of new
15    intermediate casing at least 100 feet below the base of the
16    deepest fresh water and bring cement to the surface. In
17    instances where intermediate casing was set solely to
18    protect fresh water encountered below the surface casing
19    shoe, and cementing to the surface is technically
20    infeasible, would result in lost circulation, or both,
21    cement must be brought to a minimum of 600 feet above the
22    shallowest fresh water zone encountered below the surface
23    casing shoe or to the surface if the fresh water zone is
24    less than 600 feet from the surface. The location and
25    depths of any hydrocarbon-bearing zones or fresh water
26    zones that are open to the wellbore above the casing shoe

 

 

09800HB2615ham003- 46 -LRB098 10864 MGM 43552 a

1    must be confirmed by coring, electric logs, or testing and
2    must be reported to the Department.
3        In the case that intermediate casing was set for a
4    reason other than to protect strata that contains fresh
5    water, the intermediate casing string shall be cemented
6    from the shoe to a point at least 600 true vertical feet
7    above the shoe. If there is a hydrocarbon bearing zone
8    capable of producing exposed above the intermediate casing
9    shoe, the casing shall be cemented from the shoe to a point
10    at least 600 true vertical feet above the shallowest
11    hydrocarbon bearing zone or to a point at least 200 feet
12    above the shoe of the next shallower casing string that was
13    set and cemented in the well (or to the surface if less
14    than 200 feet).
15        (13) The Department must be notified prior to
16    intermediate casing cementing operations. Cementing must
17    be by the pump and plug method with a minimum of 25% excess
18    cement. A radial cement bond evaluation log, or other
19    evaluation approved by the Department, must be run to
20    verify the cement bond on the intermediate casing. Remedial
21    cementing is required if the cement bond is not adequate
22    for drilling ahead.
23        (14) Production casing must be run and fully cemented
24    to 500 feet above the top perforated zone, if possible. The
25    Department must be notified at least 24 hours prior to
26    production casing cementing operations. Cementing must be

 

 

09800HB2615ham003- 47 -LRB098 10864 MGM 43552 a

1    by the pump and plug method with a minimum of 25% excess
2    cement.
3        (15) At any time, the Department, as it deems
4    necessary, may require installation of an additional
5    cemented casing string or strings in the well.
6        (16) After the setting and cementing of a casing
7    string, except the conductor casing, and prior to further
8    drilling, the casing string shall be tested with fresh
9    water, mud, or brine to at least the maximum anticipated
10    treatment pressure but no less than 0.22 psi per foot of
11    casing string length or 1,500 psi, whichever is greater,
12    for at least 30 minutes with less than a 5% pressure loss.
13    The pressure test shall not exceed 70% of the minimum
14    internal yield. If the pressure declines more than 5% or if
15    there are other indications of a leak, corrective action
16    shall be taken before conducting further drilling and high
17    volume horizontal hydraulic fracturing operations. The
18    operator shall contact the Department's District Office
19    for any county in which the well is located at least 24
20    hours prior to conducting a pressure test to enable an
21    inspector to be present when the test is done. A record of
22    the pressure test must be maintained by the operator and
23    must be submitted to the Department on a form prescribed by
24    the Department prior to conducting high volume horizontal
25    hydraulic fracturing operations. The actual pressure must
26    not exceed the test pressure at any time during high volume

 

 

09800HB2615ham003- 48 -LRB098 10864 MGM 43552 a

1    horizontal hydraulic fracturing operations.
2        (17) Any hydraulic fracturing string used in the high
3    volume horizontal hydraulic fracturing operations must be
4    either strung into a production liner or run with a packer
5    set at least 100 feet below the deepest cement top and must
6    be tested to not less than the maximum anticipated treating
7    pressure minus the annulus pressure applied between the
8    fracturing string and the production or immediate casing.
9    The pressure test shall be considered successful if the
10    pressure applied has been held for 30 minutes with no more
11    than 5% pressure loss. A function-tested relief valve and
12    diversion line must be installed and used to divert flow
13    from the hydraulic fracturing string-casing annulus to a
14    covered watertight steel tank in case of hydraulic
15    fracturing string failure. The relief valve must be set to
16    limit the annular pressure to no more than 95% of the
17    working pressure rating of the casings forming the annulus.
18    The annulus between the hydraulic fracturing string and
19    casing must be pressurized to at least 250 psi and
20    monitored.
21        (18) After a successful pressure test under paragraph
22    (16) of this subsection, a formation pressure integrity
23    test must be conducted below the surface casing and below
24    all intermediate casing. The operator shall notify the
25    Department's District Office for any county in which the
26    well is located at least 24 hours prior to conducting a

 

 

09800HB2615ham003- 49 -LRB098 10864 MGM 43552 a

1    formation pressure integrity test to enable an inspector to
2    be present when the test is done. A record of the pressure
3    test must be maintained by the operator and must be
4    submitted to the Department on a form prescribed by the
5    Department prior to conducting high volume horizontal
6    hydraulic fracturing operations. The actual hydraulic
7    fracturing treatment pressure must not exceed the test
8    pressure at any time during high volume horizontal
9    hydraulic fracturing operations.
10    (e) Blowout prevention standards shall be set as follows:
11            (1) The operator shall use blowout prevention
12        equipment after setting casing with a competent casing
13        seat. Blowout prevention equipment shall be in good
14        working condition at all times.
15            (2) The operator shall use pipe fittings, valves,
16        and unions placed on or connected to the blow-out
17        prevention systems that have a working pressure
18        capability that exceeds the anticipated pressures.
19            (3) During all drilling and completion operations
20        when a blowout preventer is installed, tested, or in
21        use, the operator or operator's designated
22        representative shall be present at the well site and
23        that person or personnel shall have a current well
24        control certification from an accredited training
25        program that is acceptable to the Department. The
26        certification shall be available at the well site and

 

 

09800HB2615ham003- 50 -LRB098 10864 MGM 43552 a

1        provided to the Department upon request.
2            (4) Appropriate pressure control procedures and
3        equipment in proper working order must be properly
4        installed and employed while conducting drilling and
5        completion operations including tripping, logging,
6        running casing into the well, and drilling out
7        solid-core stage plugs.
8            (5) Pressure testing of the blowout preventer and
9        related equipment for any drilling or completion
10        operation must be performed. Testing must be conducted
11        in accordance with current industry standards
12        published by the American Petroleum Institute. Testing
13        of the blowout preventer shall include testing after
14        the blowout preventer is installed on the well but
15        prior to drilling below the last cemented casing seat.
16        Pressure control equipment, including the blowout
17        preventer, that fails any pressure test shall not be
18        used until it is repaired and passes the pressure test.
19            (6) A remote blowout preventer actuator, that is
20        powered by a source other than rig hydraulics, shall be
21        located at least 50 feet from the wellhead and have an
22        appropriate rated working pressure.
 
23    Section 1-75. High volume horizontal hydraulic fracturing
24operations.
25    (a) General.

 

 

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1        (1) During all phases of high volume horizontal
2    hydraulic fracturing operations, the permittee shall
3    comply with all terms of the permit.
4        (2) All phases of high volume horizontal hydraulic
5    fracturing operations shall be conducted in a manner that
6    shall not pose a significant risk to public health, life,
7    property, aquatic life, or wildlife.
8        (3) The permittee shall notify the Department by phone,
9    electronic communication, or letter, at least 48 hours
10    prior to the commencement of high volume horizontal
11    hydraulic fracturing operations.
12    (b) Integrity tests and monitoring.
13        (1) Before the commencement of high volume horizontal
14    hydraulic fracturing operations, all mechanical integrity
15    tests required under subsection (d) of Section 1-70 and
16    this subsection must be successfully completed.
17        (2) Prior to commencing high volume horizontal
18    hydraulic fracturing operations and pumping of hydraulic
19    fracturing fluid, the injection lines and manifold,
20    associated valves, fracture head or tree and any other
21    wellhead component or connection not previously tested
22    must be tested with fresh water, mud, or brine to at least
23    the maximum anticipated treatment pressure for at least 30
24    minutes with less than a 5% pressure loss. A record of the
25    pressure test must be maintained by the operator and made
26    available to the Department upon request. The actual high

 

 

09800HB2615ham003- 52 -LRB098 10864 MGM 43552 a

1    volume horizontal hydraulic fracturing treatment pressure
2    must not exceed the test pressure at any time during high
3    volume horizontal hydraulic fracturing operations.
4        (3) The pressure exerted on treating equipment
5    including valves, lines, manifolds, hydraulic fracturing
6    head or tree, casing and hydraulic fracturing string, if
7    used, must not exceed 95% of the working pressure rating of
8    the weakest component. The high volume horizontal
9    hydraulic fracturing treatment pressure must not exceed
10    the test pressure of any given component at any time during
11    high volume horizontal hydraulic fracturing operations.
12        (4) During high volume horizontal hydraulic fracturing
13    operations, all annulus pressures, the injection pressure,
14    and the rate of injection shall be continuously monitored
15    and recorded. The records of the monitoring shall be
16    maintained by the operator and shall be provided to the
17    Department upon request at any time during the period up to
18    and including 5 years after the well is permanently plugged
19    or abandoned.
20        (5) High volume horizontal hydraulic fracturing
21    operations must be immediately suspended if any anomalous
22    pressure or flow condition or any other anticipated
23    pressure or flow condition is occurring in a way that
24    indicates the mechanical integrity of the well has been
25    compromised and continued operations pose a risk to the
26    environment. Remedial action shall be undertaken

 

 

09800HB2615ham003- 53 -LRB098 10864 MGM 43552 a

1    immediately prior to recommencing high volume horizontal
2    hydraulic fracturing operations. The permittee shall
3    notify the Department within 1 hour of suspending
4    operations for any matters relating to the mechanical
5    integrity of the well or risk to the environment.
6    (c) Fluid and waste management.
7        (1) For the purposes of storage at the well site and
8    except as provided in paragraph (2) of this subsection,
9    hydraulic fracturing additives, hydraulic fracturing
10    fluid, hydraulic fracturing flowback, and produced water
11    shall be stored in above-ground tanks during all phases of
12    drilling, high volume horizontal hydraulic fracturing, and
13    production operations until removed for proper disposal.
14    For the purposes of centralized storage off site for
15    potential reuse prior to disposal, hydraulic fracturing
16    additives, hydraulic fracturing fluid, hydraulic
17    fracturing flowback, and produced water shall be stored in
18    above-ground tanks.
19        (2) In accordance with the plan required by paragraph
20    (11) of subsection (b) of Section 1-35 of this Act and as
21    approved by the Department, the use of a reserve pit is
22    allowed for the temporary storage of hydraulic fracturing
23    flowback. The reserve pit shall be used only in the event
24    of a lack of capacity for tank storage due to higher than
25    expected volume or rate of hydraulic fracturing flowback,
26    or other unanticipated flowback occurrence. Any reserve

 

 

09800HB2615ham003- 54 -LRB098 10864 MGM 43552 a

1    pit must comply with the following construction standards
2    and liner specifications:
3            (A) the synthetic liner material shall have a
4        minimum thickness of 24 mils with high puncture and
5        tear strength and be impervious and resistant to
6        deterioration;
7            (B) the pit lining system shall be designed to have
8        a capacity at least equivalent to 110% of the maximum
9        volume of hydraulic fracturing flowback anticipated to
10        be recovered;
11            (C) the lined pit shall be constructed, installed,
12        and maintained in accordance with the manufacturers'
13        specifications and good engineering practices to
14        prevent overflow during any use;
15            (D) the liner shall have sufficient elongation to
16        cover the bottom and interior sides of the pit with the
17        edges secured with at least a 12 inch deep anchor
18        trench around the pit perimeter to prevent any slippage
19        or destruction of the liner materials; and
20            (E) the foundation for the liner shall be free of
21        rock and constructed with soil having a minimum
22        thickness of 12 inches after compaction covering the
23        entire bottom and interior sides of the pit.
24        (3) Fresh water may be stored in tanks or pits at the
25    election of the operator.
26        (4) Tanks required under this subsection must be

 

 

09800HB2615ham003- 55 -LRB098 10864 MGM 43552 a

1    above-ground tanks that are closed, watertight, and will
2    resist corrosion. The permittee shall routinely inspect
3    the tanks for corrosion.
4        (5) Hydraulic fracturing fluids and hydraulic
5    fracturing flowback must be removed from the well site
6    within 60 days after completion of high volume horizontal
7    fracturing operations, except that any excess hydraulic
8    fracturing flowback captured for temporary storage in a
9    reserve pit as provided in paragraph (2) of this subsection
10    must be removed from the well site within 7 days.
11        (6) Tanks, piping, and conveyances, including valves,
12    must be constructed of suitable materials, be of sufficient
13    pressure rating, be able to resist corrosion, and be
14    maintained in a leak-free condition. Fluid transfer
15    operations from tanks to tanker trucks must be supervised
16    at the truck and at the tank if the tank is not visible to
17    the truck operator from the truck. During transfer
18    operations, all interconnecting piping must be supervised
19    if not visible to transfer personnel at the truck and tank.
20        (7) Hydraulic fracturing flowback must be tested for
21    volatile organic chemicals, semi-volatile organic
22    chemicals, inorganic chemicals, heavy metals, and
23    naturally occurring radioactive material prior to removal
24    from the site. Testing shall occur once per well site and
25    the analytical results shall be filed with the Department
26    and the Agency, and provided to the liquid oilfield waste

 

 

09800HB2615ham003- 56 -LRB098 10864 MGM 43552 a

1    transportation and disposal operators. Prior to plugging
2    and site restoration, the ground adjacent to the storage
3    tanks and any hydraulic fracturing flowback reserve pit
4    must be measured for radioactivity.
5        (8) Hydraulic fracturing flowback may only be disposed
6    of by injection into a Class II injection well that is
7    below interface between fresh water and naturally
8    occurring Class IV groundwater. Produced water may be
9    disposed of by injection in a permitted enhanced oil
10    recovery operation. Hydraulic fracturing flowback and
11    produced water may be treated and recycled for use in
12    hydraulic fracturing fluid for high volume horizontal
13    hydraulic fracturing operations.
14        (9) Discharge of hydraulic fracturing fluids,
15    hydraulic fracturing flowback, and produced water into any
16    surface water or water drainage way is prohibited.
17        (10) Transport of all hydraulic fracturing fluids,
18    hydraulic fracturing flowback, and produced water by
19    vehicle for disposal must be undertaken by a liquid
20    oilfield waste hauler permitted by the Department under
21    Section 8c of the Illinois Oil and Gas Act. The liquid
22    oilfield waste hauler transporting hydraulic fracturing
23    fluids, hydraulic fracturing flowback, or produced water
24    under this Act shall comply with all laws, rules, and
25    regulations concerning liquid oilfield waste.
26        (11) Drill cuttings, drilling fluids, and drilling

 

 

09800HB2615ham003- 57 -LRB098 10864 MGM 43552 a

1    wastes not containing oil-based mud or polymer-based mud
2    may be stored in tanks or pits. Pits used to store
3    cuttings, fluids, and drilling wastes from wells not using
4    fresh water mud shall be subject to the construction
5    standards identified in (2) of this Section. Drill cuttings
6    not contaminated with oil-based mud or polymer-based mud
7    may be disposed of onsite subject to the approval of the
8    Department. Drill cuttings contaminated with oil-based mud
9    or polymer-based mud shall not be disposed of on site.
10    Annular disposal of drill cuttings or fluid is prohibited.
11        (12) Any release of hydraulic fracturing fluid,
12    hydraulic fracturing additive, or hydraulic fracturing
13    flowback, used or generated during or after high volume
14    horizontal hydraulic fracturing operations shall be
15    immediately cleaned up and remediated pursuant to
16    Department requirements. Any release of hydraulic
17    fracturing fluid or hydraulic fracturing flowback in
18    excess of 1 barrel, shall be reported to the Department.
19    Any release of a hydraulic fracturing additive shall be
20    reported to the Department in accordance with the
21    appropriate reportable quantity thresholds established
22    under the federal Emergency Planning and Community
23    Right-to-Know Act as published in the Code of Federal
24    Regulations (CFR), 40 CFR Parts 355, 370, and 372, the
25    federal Comprehensive Environmental Response,
26    Compensation, and Liability Act as published in 40 CFR Part

 

 

09800HB2615ham003- 58 -LRB098 10864 MGM 43552 a

1    302, and subsection (r) of Section 112 of the Federal Clean
2    Air Act as published in 40 CFR Part 68. Any release of
3    produced water in excess of 5 barrels shall be cleaned up,
4    remediated, and reported pursuant to Department
5    requirements.
6        (13) Secondary containment for tanks required under
7    this subsection and additive staging areas is required.
8    Secondary containment measures may include, as deemed
9    appropriate by the Department, one or a combination of the
10    following: dikes, liners, pads, impoundments, curbs,
11    sumps, or other structures or equipment capable of
12    containing the substance. Any secondary containment must
13    be sufficient to contain 110% of the total capacity of the
14    single largest container or tank within a common
15    containment area. No more than one hour before initiating
16    any stage of the high volume horizontal hydraulic
17    fracturing operations, all secondary containment must be
18    visually inspected to ensure all structures and equipment
19    are in place and in proper working order. The results of
20    this inspection must be recorded and documented by the
21    operator, and available to the Department upon request.
22        (14) A report on the transportation and disposal of the
23    hydraulic fracturing fluids and hydraulic fracturing
24    flowback shall be prepared and included in the well file.
25    The report must include the amount of fluids transported,
26    identification of the company that transported the fluids,

 

 

09800HB2615ham003- 59 -LRB098 10864 MGM 43552 a

1    the destination of the fluids, and the method of disposal.
2        (15) Operators operating wells permitted under this
3    Act must submit an annual report to the Department
4    detailing the management of any produced water associated
5    with the permitted well. The report shall be due to the
6    Department no later than April 30th of each year and shall
7    provide information on the operator's management of any
8    produced water for the prior calendar year. The report
9    shall contain information relative to the amount of
10    produced water the well permitted under this Act produced,
11    the method by which the produced water was disposed, and
12    the destination where the produced water was disposed in
13    addition to any other information the Department
14    determines is necessary by rule.
15    (d) Hydraulic fracturing fluid shall be confined to the
16targeted formation designated in the permit. If the hydraulic
17fracturing fluid or hydraulic fracturing flowback are
18migrating into the freshwater zone or to the surface from the
19well in question or from other wells, the permittee shall
20immediately notify the Department and shut in the well until
21remedial action that prevents the fluid migration is completed.
22The permittee shall obtain the approval of the Department prior
23to resuming operations.
24    (e) Emissions controls.
25        (1) This subsection applies to all horizontal wells
26    that are completed with high volume horizontal hydraulic

 

 

09800HB2615ham003- 60 -LRB098 10864 MGM 43552 a

1    fracturing.
2        (2) Except as otherwise provided in paragraph (8) of
3    this subsection (e), permittees shall be responsible for
4    managing gas and hydrocarbon fluids produced during the
5    flowback period by routing recovered hydrocarbon fluids to
6    one or more storage vessels or re-injecting into the well
7    or another well, and routing recovered natural gas into a
8    flow line or collection system, re-injecting the gas into
9    the well or another well, using the gas as an on-site fuel
10    source, or using the gas for another useful purpose that a
11    purchased fuel or raw material would serve, with no direct
12    release to the atmosphere.
13        (3) If it is technically infeasible or economically
14    unreasonable to minimize emissions associated with the
15    venting of hydrocarbon fluids and natural gas during the
16    flowback period using the methods specified in paragraph
17    (2) of this subsection (e), the permittee shall capture and
18    direct the emissions to a completion combustion device,
19    except in conditions that may result in a fire hazard or
20    explosion, or where high heat emissions from a completion
21    combustion device may negatively impact waterways.
22    Completion combustion devices must be equipped with a
23    reliable continuous ignition source over the duration of
24    the flowback period.
25        (4) Except as otherwise provided in paragraph (8) of
26    this subsection (e), permittees shall be responsible for

 

 

09800HB2615ham003- 61 -LRB098 10864 MGM 43552 a

1    minimizing the emissions associated with venting of
2    hydrocarbon fluids and natural gas during the production
3    phase by:
4            (A) routing the recovered fluids into storage
5        vessels and (i) routing the recovered gas into a gas
6        gathering line, collection system, or to a generator
7        for onsite energy generation, providing that gas to the
8        surface owner of the well site for use for heat or
9        energy generation, or (ii) using another method other
10        than venting or flaring; and
11            (B) employing sand traps, surge vessels,
12        separators, and tanks as soon as practicable during
13        cleanout operations to safely maximize resource
14        recovery and minimize releases to the environment.
15        (5) If the permittee establishes that it is technically
16    infeasible or economically unreasonable to minimize
17    emissions associated with the venting of hydrocarbon
18    fluids and natural gas during production using the methods
19    specified in paragraph (4) of this subsection (e), the
20    Department shall require the permittee to capture and
21    direct any natural gas produced during the production phase
22    to a flare. Any flare used pursuant to this paragraph shall
23    be equipped with a reliable continuous ignition source over
24    the duration of production. In order to establish technical
25    infeasibility or economic unreasonableness under this
26    paragraph (5), the permittee must demonstrate, for each

 

 

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1    well site on an annual basis, that taking the actions
2    listed in paragraph (4) of this subsection (e) are not cost
3    effective based on a site-specific analysis. Permittees
4    that use a flare during the production phase for operations
5    other than emergency conditions shall file an updated
6    site-specific analysis annually with the Department. The
7    analysis shall be due one year from the date of the
8    previous submission and shall detail whether any changes
9    have occurred that alter the technical infeasibility or
10    economic unreasonableness of the permittee to reduce their
11    emissions in accordance with paragraph (4) of this
12    subsection (e).
13        (6) Uncontrolled emissions exceeding 6 tons per year
14    from storage tanks shall be recovered and routed to a flare
15    that is designed in accordance with 40 CFR 60.18 and is
16    certified by the manufacturer of the device. The permittee
17    shall maintain and operate the flare in accordance with
18    manufacturer specifications. Any flare used under this
19    paragraph must be equipped with a reliable continuous
20    ignition source over the duration of production.
21        (7) The Department may approve an exemption that waives
22    the flaring requirements of paragraphs (5) and (6) of this
23    subsection (e) only if the permittee demonstrates that the
24    use of the flare will pose a significant risk of injury or
25    property damage and that alternative methods of collection
26    will not threaten harm to the environment. In determining

 

 

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1    whether to approve a waiver, the Department shall consider
2    the quantity of casinghead gas produced, the topographical
3    and climatological features at the well site, and the
4    proximity of agricultural structures, crops, inhabited
5    structures, public buildings, and public roads and
6    railways.
7        (8) For each wildcat well, delineation well, or low
8    pressure well, permittees shall be responsible for
9    minimizing the emissions associated with venting of
10    hydrocarbon fluids and natural gas during the flowback
11    period and production phase by capturing and directing the
12    emissions to a completion combustion device during the
13    flowback period and to a flare during the production phase,
14    except in conditions that may result in a fire hazard or
15    explosion, or where high heat emissions from a completion
16    combustion device or flare may negatively impact
17    waterways. Completion combustion devices and flares shall
18    be equipped with a reliable continuous ignition source over
19    the duration of the flowback period and the production
20    phase, as applicable.
21        (9) On or after July 1, 2015, all flares used under
22    paragraphs (5) and (8) of this subsection (e) shall (i)
23    operate with a combustion efficiency of at least 98% and in
24    accordance with 40 CFR 60.18; and (ii) be certified by the
25    manufacturer of the device. The permittee shall maintain
26    and operate the flare in accordance with manufacturer

 

 

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1    specifications.
2        (10) Permittees shall employ practices for control of
3    fugitive dust related to their operations. These practices
4    shall include, but are not limited to, the use of speed
5    restrictions, regular road maintenance, and restriction of
6    construction activity during high-wind days. Additional
7    management practices such as road surfacing, wind breaks
8    and barriers, or automation of wells to reduce truck
9    traffic may also be required by the Department if
10    technologically feasible and economically reasonable to
11    minimize fugitive dust emissions.
12        (11) Permittees shall record and report to the
13    Department on an annual basis the amount of gas flared or
14    vented from each high volume horizontal hydraulic
15    fracturing well. Three years after the effective date of
16    the first high-volume horizontal hydraulic fracturing well
17    permit issued by the Department, and every 3 years
18    thereafter, the Department shall prepare a report that
19    analyzes the amount of gas that has been flared or vented
20    and make recommendations to the General Assembly on whether
21    steps should be taken to reduce the amount of gas that is
22    being flared or vented in this State.
23    (f) High volume horizontal hydraulic fracturing operations
24completion report. Within 60 calendar days after the conclusion
25of high volume horizontal hydraulic fracturing operations, the
26operator shall file a high volume horizontal hydraulic

 

 

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1fracturing operations completion report with the Department. A
2copy of each completion report submitted to the Department
3shall be provided by the Department to the Illinois State
4Geological Survey. The completion reports required by this
5Section shall be considered public information and shall be
6made available on the Department's website. The high volume
7horizontal hydraulic fracturing operations completion report
8shall contain the following information:
9        (1) the permittee name as listed in the permit
10    application;
11        (2) the dates of the high volume horizontal hydraulic
12    fracturing operations;
13        (3) the county where the well is located;
14        (4) the well name and Department reference number;
15        (5) the total water volume used in the high volume
16    horizontal hydraulic fracturing operations of the well,
17    and the type and total volume of the base fluid used if
18    something other than water;
19        (6) each source from which the water used in the high
20    volume horizontal hydraulic fracturing operations was
21    drawn, and the specific location of each source, including,
22    but not limited to, the name of the county and latitude and
23    longitude coordinates;
24        (7) the quantity of hydraulic fracturing flowback
25    recovered from the well;
26        (8) a description of how hydraulic fracturing flowback

 

 

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1    recovered from the well was disposed and, if applicable,
2    reused;
3        (9) a chemical disclosure report identifying each
4    chemical and proppant used in hydraulic fracturing fluid
5    for each stage of the hydraulic fracturing operations
6    including the following:
7            (A) the total volume of water used in the hydraulic
8        fracturing treatment of the well or the type and total
9        volume of the base fluid used in the hydraulic
10        fracturing treatment, if something other than water;
11            (B) each hydraulic fracturing additive used in the
12        hydraulic fracturing fluid, including the trade name,
13        vendor, a brief descriptor of the intended use or
14        function of each hydraulic fracturing additive, and
15        the Material Safety Data Sheet (MSDS), if applicable;
16            (C) each chemical intentionally added to the base
17        fluid, including for each chemical, the Chemical
18        Abstracts Service number, if applicable; and
19            (D) the actual concentration in the base fluid, in
20        percent by mass, of each chemical intentionally added
21        to the base fluid;
22        (10) all pressures recorded during the high volume
23    horizontal hydraulic fracturing operations; and
24        (11) any other reasonable or pertinent information
25    related to the conduct of the high volume horizontal
26    hydraulic fracturing operations the Department may request

 

 

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1    or require by administrative rule.
 
2    Section 1-77. Chemical disclosure; trade secret
3protection.
4    (a) If the chemical disclosure information required by
5paragraph (8) of subsection (b) of Section 1-35 of this Act is
6not submitted at the time of permit application, then the
7permittee, applicant, or person who will perform high volume
8horizontal hydraulic fracturing operations at the well shall
9submit this information to the Department in electronic format
10no less than 21 calendar days prior to performing the high
11volume horizontal hydraulic fracturing operations. The
12permittee shall not cause or allow any stimulation of the well
13if it is not in compliance with this Section. Nothing in this
14Section shall prohibit the person performing high volume
15horizontal hydraulic fracturing operations from adjusting or
16altering the contents of the fluid during the treatment process
17to respond to unexpected conditions, as long as the permittee
18or the person performing the high volume horizontal hydraulic
19fracturing operations notifies the Department by electronic
20mail within 24 hours of the departure from the initial
21treatment design and includes a brief explanation of the reason
22for the departure.
23    (b) No permittee shall use the services of another person
24to perform high volume horizontal hydraulic fracturing
25operations unless the person is in compliance with this

 

 

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1Section.
2    (c) Any person performing high volume horizontal hydraulic
3fracturing operations within this State shall:
4        (1) be authorized to do business in this State; and
5        (2) maintain and disclose to the Department separate
6    and up-to-date master lists of:
7            (A) the base fluid to be used during any high
8        volume horizontal hydraulic fracturing operations
9        within this State;
10            (B) all hydraulic fracturing additives to be used
11        during any high volume horizontal hydraulic fracturing
12        operations within this State; and
13            (C) all chemicals and associated Chemical Abstract
14        Service numbers to be used in any high volume
15        horizontal hydraulic fracturing operations within this
16        State.
17    (d) Persons performing high volume horizontal hydraulic
18fracturing operations are prohibited from using any base fluid,
19hydraulic fracturing additive, or chemical not listed on their
20master lists disclosed under paragraph (2) of subsection (c) of
21this Section.
22    (e) The Department shall assemble and post up-to-date
23copies of the master lists it receives under paragraph (2) of
24subsection (c) of this Section on its website in accordance
25with Section 1-110 of this Act.
26    (f) Where an applicant, permittee, or the person performing

 

 

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1high volume horizontal hydraulic fracturing operations
2furnishes chemical disclosure information to the Department
3under this Section, Section 1-35, or Section 1-75 of this Act
4under a claim of trade secret, the applicant, permittee, or
5person performing high volume horizontal hydraulic fracturing
6operations shall submit redacted and un-redacted copies of the
7documents containing the information to the Department and the
8Department shall use the redacted copies when posting materials
9on its website.
10    (g) Upon submission or within 5 calendar days of submission
11of chemical disclosure information to the Department under this
12Section, Section 1-35, or Section 1-75 of this Act under a
13claim of trade secret, the person that claimed trade secret
14protection shall provide a justification of the claim
15containing the following: a detailed description of the
16procedures used by the person to safeguard the information from
17becoming available to persons other than those selected by the
18person to have access to the information for limited purposes;
19a detailed statement identifying the persons or class of
20persons to whom the information has been disclosed; a
21certification that the person has no knowledge that the
22information has ever been published or disseminated or has
23otherwise become a matter of general public knowledge; a
24detailed discussion of why the person believes the information
25to be of competitive value; and any other information that
26shall support the claim.

 

 

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1    (h) Chemical disclosure information furnished under this
2Section, Section 1-35, or Section 1-75 of this Act under a
3claim of trade secret shall be protected from disclosure as a
4trade secret if the Department determines that the statement of
5justification demonstrates that:
6        (1) the information has not been published,
7    disseminated, or otherwise become a matter of general
8    public knowledge; and
9        (2) the information has competitive value.
10    There is a rebuttable presumption that the information has
11not been published, disseminated, or otherwise become a matter
12of general public knowledge if the person has taken reasonable
13measures to prevent the information from becoming available to
14persons other than those selected by the person to have access
15to the information for limited purposes and the statement of
16justification contains a certification that the person has no
17knowledge that the information has ever been published,
18disseminated, or otherwise become a matter of general public
19knowledge.
20    (i) Denial of a trade secret request under this Section
21shall be appealable under the Administrative Review Law.
22    (j) A person whose request to inspect or copy a public
23record is denied, in whole or in part, because of a grant of
24trade secret protection may file a request for review with the
25Public Access Counselor under Section 9.5 of the Freedom of
26Information Act or for injunctive or declaratory relief under

 

 

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1Section 11 of the Freedom of Information Act for the purpose of
2reviewing whether the Department properly determined that the
3trade secret protection should be granted.
4    (k) Except as otherwise provided in subsections (l) and (m)
5of this Section, the Department must maintain the
6confidentiality of chemical disclosure information furnished
7under this Section, Section 1-35, or Section 1-75 of this Act
8under a claim of trade secret, until the Department receives
9official notification of a final order by a reviewing body with
10proper jurisdiction that is not subject to further appeal
11rejecting a grant of trade secret protection for that
12information.
13    (l) The Department shall adopt rules for the provision of
14information furnished under a claim of trade secret to a health
15professional who states a need for the information and
16articulates why the information is needed. The health
17professional may share that information with other persons as
18may be professionally necessary, including, but not limited to,
19the affected patient, other health professionals involved in
20the treatment of the affected patient, the affected patient's
21family members if the affected patient is unconscious, unable
22to make medical decisions, or is a minor, the Centers for
23Disease Control, and other government public health agencies.
24Except as otherwise provided in this Section, any recipient of
25the information shall not use the information for purposes
26other than the health needs asserted in the request and shall

 

 

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1otherwise maintain the information as confidential.
2Information so disclosed to a health professional shall in no
3way be construed as publicly available. The holder of the trade
4secret may request a confidentiality agreement consistent with
5the requirements of this Section from all health professionals
6to whom the information is disclosed as soon as circumstances
7permit. The rules adopted by the Department shall also
8establish procedures for providing the information in both
9emergency and non-emergency situations.
10    (m) In the event of a release of hydraulic fracturing
11fluid, a hydraulic fracturing additive, or hydraulic
12fracturing flowback, and when necessary to protect public
13health or the environment, the Department may disclose
14information furnished under a claim of trade secret to the
15relevant county public health director or emergency manager,
16the relevant fire department chief, the Director of the
17Illinois Department of Public Health, the Director of the
18Illinois Department of Agriculture, and the Director of the
19Illinois Environmental Protection Agency upon request by that
20individual. The Director of the Illinois Department of Public
21Health, and the Director of the Illinois Environmental
22Protection Agency, and the Director of the Illinois Department
23of Agriculture may disclose this information to staff members
24under the same terms and conditions as apply to the Director of
25Natural Resources. Except as otherwise provided in this
26Section, any recipient of the information shall not use the

 

 

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1information for purposes other than to protect public health or
2the environment and shall otherwise maintain the information as
3confidential. Information disclosed to staff shall in no way be
4construed as publicly available. The holder of the trade secret
5information may request a confidentiality agreement consistent
6with the requirements of this Section from all persons to whom
7the information is disclosed as soon as circumstances permit.
 
8    Section 1-80. Water quality monitoring.
9    (a) Each applicant for a high volume horizontal hydraulic
10fracturing permit shall provide the Department with a work plan
11to ensure accurate and complete sampling and testing as
12required under this Section. The work plan shall ensure
13compliance with the requirements of this Section and include,
14at a minimum, the following:
15        (1) information identifying all water sources within
16    the range of testing under this Section;
17        (2) a sampling plan and protocol, including
18    notification to the Department at least 7 calendar days
19    prior to sample collection;
20        (3) the name and contact information of an independent
21    third party under the supervision of a professional
22    engineer or professional geologist that shall be
23    designated to conduct sampling to establish a baseline as
24    provided for under subsection (b) of this Section;
25        (4) the name and contact information of an independent

 

 

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1    third party under the supervision of a professional
2    engineer or professional geologist that shall be
3    designated to conduct sampling to establish compliance
4    with monitoring as provided within subsection (c) of this
5    Section;
6        (5) the name and contact information of an independent
7    testing laboratory, certified to perform the required
8    laboratory method, to conduct the analysis required under
9    subsections (b) and (c) of this Section;
10        (6) proof of access and the right to test within the
11    area for testing prescribed within subsection (b) of this
12    Section during the duration of high volume horizontal
13    hydraulic fracturing operations covered under the permit
14    application, and copies of any non-disclosure agreements
15    made under subsection (d) of this Section; and
16        (7) identification of practicable contingency
17    measures, including provision for alternative drinking
18    water supplies, which could be implemented in the event of
19    pollution or diminution of a water source as provided for
20    in Section 1-83.
21    (b) Prior to conducting high volume horizontal hydraulic
22fracturing operations on a well, a permittee shall retain an
23independent third party, as required within paragraph (3) of
24subsection (a) of this Section, and shall conduct baseline
25water quality sampling of all water sources within 1,500 feet
26of the well site prior to any fracturing activities. Where (i)

 

 

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1there are no groundwater wells within 1,500 feet of a well
2site, or access to groundwater wells within 1,500 feet of the
3well site has been denied under subsection (d) of this Section,
4and (ii) the proposed well site is located within 1,500 feet
5horizontally from any portion of an aquifer, the permittee
6shall conduct sampling of the aquifer at the closest
7groundwater well with access to the aquifer to which the
8permittee has not been denied access under subsection (d) of
9this Section. Installation of a groundwater monitoring well is
10not required to satisfy the sampling requirements of this
11Section. The samples collected by the independent third party,
12under the supervision of a professional engineer or
13professional geologist, shall be analyzed by an independent
14testing laboratory in accordance with paragraph (4) of
15subsection (a) of this Section. Testing shall be done by
16collection of a minimum of 3 samples for each water source
17required to be tested under this Section. The permittee shall,
18within 7 calendar days after receipt of results of tests
19conducted under this subsection, submit the results to the
20Department or to the owner of the water source under a
21non-disclosure agreement under subsection (d) of this Section.
22The Department shall post the results on its website within 7
23calendar days after receipt. The results shall, at a minimum,
24include a detailed description of the sampling and testing
25conducted under this subsection, the chain of custody of the
26samples, and quality control of the testing.

 

 

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1    (c) After baseline tests are conducted under subsection (b)
2of this Section and following issuance of a permit by the
3Department, the permittee shall have all water sources which
4are subjected to sampling under subsection (b) of this Section
5sampled and tested in the same manner 6 months, 18 months, and
630 months after the high volume horizontal hydraulic fracturing
7operations have been completed. Sampling of a water source
8under this subsection is not required if the water source was
9sampled under this subsection or subsection (b) within the
10previous month. The permittee shall notify the Department at
11least 7 calendar days prior to taking the sample. The permittee
12shall, within 7 calendar days after receipt of results of tests
13conducted under this subsection (c), submit the results to the
14Department or to the owner of the water source pursuant to a
15non-disclosure agreement under subsection (d) of this Section.
16The results shall include, at a minimum, a detailed description
17of the sampling and testing conducted under this subsection,
18the chain of custody of the samples, and quality control of the
19testing.
20    (d) Sampling of private water wells or ponds wholly
21contained within private property shall not be required where
22the owner of the private property declines, expressly and in
23writing, to provide access or permission for sampling. If the
24owner of the private property declines to provide proof of his
25or her refusal to allow access in writing, the operator shall
26provide the Department evidence as to the good faith efforts

 

 

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1that were made to secure the required documentation. Permits
2issued under this Act cannot be denied if the owner of the
3private property declines to provide proof of his or her
4refusal to allow access in writing and the permittee provides
5evidence that good faith efforts were made to gain access for
6the purposes of conducting tests. The owners of private
7property may condition access or permission for sampling of a
8private water well or pond wholly within the property or a
9portion of any perennial stream or river that flows through the
10property under a non-disclosure agreement, which must include
11the following terms and conditions:
12        (1) the permittee shall provide the results of the
13    water quality testing to the property owners;
14        (2) the permittee shall retain the results of the water
15    quality testing until at least one year after completion of
16    all monitoring under this Section for review by the
17    Department upon request;
18        (3) the permittee shall not file with the Department
19    the results of the water quality testing, except under
20    paragraph (4) of subsection (d) of this Section; and
21        (4) the permittee shall notify the Department within 7
22    calendar days of its receipt of the water quality data
23    where any testing under subsection (c) of this Section
24    indicates that concentrations exceed the standards or
25    criteria referenced in the definition of pollution or
26    diminution under Section 1-5 of this Act.

 

 

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1    (e) Each set of samples collected under subsections (b) and
2(c) of this Section shall include analyses for:
3        (1) pH;
4        (2) total dissolved solids, dissolved methane,
5    dissolved propane, dissolved ethane, alkalinity, and
6    specific conductance;
7        (3) chloride, sulfate, arsenic, barium, calcium,
8    chromium, iron, magnesium, selenium, cadmium, lead,
9    manganese, mercury, and silver;
10        (4) BTEX; and
11        (5) gross alpha and beta particles to determine the
12    presence of any naturally occurring radioactive materials.
13    Sampling shall, at a minimum, be consistent with the work
14plan and allow for a determination of whether any hydraulic
15fracturing additive or other contaminant has caused pollution
16or diminution for purposes of Sections 1-83 and 1-85 of this
17Act.
 
18    Section 1-83. Order authority.
19    (a) Any person who has reason to believe they have incurred
20pollution or diminution of a water source as a result of a high
21volume horizontal hydraulic fracturing treatment of a well may
22notify the Department and request that an investigation be
23conducted.
24    (b) Within 30 calendar days after notification, the
25Department shall initiate the investigation of the claim and

 

 

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1make a reasonable effort to reach a determination within 180
2calendar days after notification. The Department may contact
3the Agency to seek the Agency's assistance in water quality
4sampling. The Agency may seek cost recovery under subsection
5(e) of Section 1-87 of this Act and recover all costs for
6samples taken for the investigation under this Section.
7    (c) Any person conducting or who has conducted high volume
8horizontal hydraulic fracturing operations shall supply any
9information requested by the Department to assist the
10Department. The Department shall give due consideration to any
11information submitted during the course of the investigation.
12    (d) If sampling results or other information obtained as
13part of the investigation or the results of tests conducted
14under subsection (c) of Section 1-80 of this Act indicate that
15concentrations exceed the standards or criteria referenced by
16pollution or diminution under Section 1-5 of this Act, the
17Department shall issue an order to the permittee as necessary
18to require permanent or temporary replacement of a water
19source. In addition to any other penalty available under the
20law and consistent with the Department's order, the permittee
21shall restore or replace the affected supply with an
22alternative source of water adequate in quantity and quality
23for the purposes served by the water source. The quality of a
24restored or replaced water source shall meet or exceed the
25quality of the original water source based upon the results of
26the baseline test results under subsection (b) of Section 1-80

 

 

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1for that water source, or other available information. The
2Department may require the permittee to take immediate action,
3including but not limited to, repair, replacement, alteration,
4or prohibition of operation of equipment permitted by the
5Department. The Department may issue conditions within any
6order to protect the public health or welfare or the
7environment.
8    (e) Within 15 calendar days after a determination has been
9made regarding the pollution or diminution, the Department
10shall provide notice of its findings and the orders, if any, to
11all persons that use the water source for domestic,
12agricultural, industrial, or any other legitimate beneficial
13uses.
14    (f) Upon issuance of an Order or a finding of pollution or
15diminution under subsection (d) of this Section, the Department
16shall contact the Agency and forward all information from the
17investigation to the Agency. The Agency shall investigate the
18potential for violations as designated within Section 1-87 of
19this Act.
20    (g) Reports of potential cases of water pollution that may
21be associated with high volume horizontal hydraulic fracturing
22operations may be submitted electronically. The Department
23shall establish a format for these reports to be submitted
24through the website developed under Section 1-110 of this Act.
25The Department shall electronically provide these reports to
26the Agency.

 

 

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1    (h) The Department shall publish, on its website, lists of
2confirmed cases of pollution or diminution that result from
3high volume horizontal hydraulic fracturing operations. This
4information shall be searchable by county.
5    (i) Nothing in this Section shall prevent the Department
6from issuing a cessation order under Section 8a of the Illinois
7Oil and Gas Act.
 
8    Section 1-85. Presumption of pollution or diminution.
9    (a) This Section establishes a rebuttable presumption for
10the purposes of evidence and liability under State law
11regarding claims of pollution or diminution of a water source
12and for use regarding the investigation and order authority
13under Section 1-83.
14    (b) Unless rebutted by a defense established in subsection
15(c) of this Section, it shall be presumed that any person
16conducting or who has conducted high volume horizontal
17hydraulic fracturing operations shall be liable for pollution
18or diminution of a water supply if:
19        (1) the water source is within 1,500 feet of the well
20    site;
21        (2) water quality data showed no pollution or
22    diminution prior to the start of high volume horizontal
23    hydraulic fracturing operations; and
24        (3) the pollution or diminution occurred during high
25    volume horizontal hydraulic fracturing operations or no

 

 

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1    more than 30 months after the completion of the high volume
2    horizontal hydraulic fracturing operations.
3    (c) To rebut the presumption established under this
4Section, a person presumed responsible must affirmatively
5prove by clear and convincing evidence any of the following:
6        (1) the water source is not within 1,500 feet of the
7    well site;
8        (2) the pollution or diminution occurred prior to high
9    volume horizontal hydraulic fracturing operations or more
10    than 30 months after the completion of the high volume
11    horizontal hydraulic fracturing operations; or
12        (3) the pollution or diminution occurred as the result
13    of an identifiable cause other than the high volume
14    horizontal hydraulic fracturing operations.
 
15    Section 1-87. Water quality investigation and enforcement.
16    (a) No person shall cause or allow high volume horizontal
17hydraulic fracturing operations permitted under this Act to
18violate Section 12 of the Illinois Environmental Protection Act
19or surface water or groundwater regulations adopted under the
20Illinois Environmental Protection Act.
21    (b) The Agency shall have the duty to investigate
22complaints that activities under this Act have caused a
23violation of Section 12 of the Illinois Environmental
24Protection Act or surface or groundwater rules adopted under
25the Illinois Environmental Protection Act. Any action taken by

 

 

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1the Agency in enforcing these violations shall be taken under
2and consistent with the Illinois Environmental Protection Act,
3including but not limited to, the Agency's authority to seek a
4civil or criminal cause of action under that Act. The test
5results under subsections (b) and (c) of Section 1-80 of this
6Act may be considered by the Agency during an investigation
7under this Section.
8    (c) A person who has reason to believe they have incurred
9contamination of a water source as a result of high volume
10horizontal hydraulic fracturing may notify the Agency and
11request an investigation be conducted. The Agency shall forward
12this request to the Department for consideration of an
13investigation under Section 1-83 of this Act. If the Agency is
14provided with notice under subsection (f) of Section 1-83, the
15Agency shall conduct an investigation to determine whether
16pollution or diminution is continuing to occur at the location
17subject to the order, as well as locations identified by the
18Department or at any other water source within 1,500 feet of
19the well site. Any person conducting or who has conducted high
20volume horizontal hydraulic fracturing operations shall supply
21any information requested to assist the Agency in its
22investigation. The Agency shall give due consideration to any
23information submitted during the course of the investigation.
24    (d) Pollution or diminution is a violation of this Act and
25may be pursued by the Department subject to the procedures and
26remedies under Sections 1-100 and 1-105 of this Act.

 

 

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1    (e) If an Agency investigation under Section 1-83 or
2subsection (c) of this Section confirms that the cause of the
3pollution, diminution, or water pollution is attributable to
4high volume horizontal hydraulic fracturing operations, in
5addition to any other relief available under law, the permittee
6shall be required to reimburse the costs and reasonable
7expenses incurred by the Agency for all activities related to
8the investigation and cleanup. These costs shall include, but
9not be limited to, inspections, investigations, analyses,
10personnel, direct and indirect costs, studies, assessments,
11reports, and review and evaluation of that data, as well as
12costs under the Agency's review of whether the quality of a
13restored or replaced water supply meets or exceeds the quality
14of the water supply before it was affected by the permittee.
15Costs shall be reimbursed to the Agency by the permittee within
1630 calendar days after receipt of a written request for
17reimbursement by the Agency. For all costs that remain unpaid
18following 30 calendar days after receipt of a written request
19for reimbursement, the Agency may institute a civil action for
20cost recovery under subsection (e) of Section 1-101 of this
21Act. Failure to reimburse the Agency within 30 calendar days
22after receipt of the written request for reimbursement is a
23violation of this Act. Reimbursement of costs collected under
24this subsection shall be deposited by the Agency into the
25Illinois Clean Water Fund.
 

 

 

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1    Section 1-95. Plugging; restoration.
2    (a) The permittee shall perform and complete plugging of
3the well and restoration of the well site in accordance with
4the Illinois Oil and Gas Act and any and all rules adopted
5thereunder. The permittee shall bear all costs related to
6plugging of the well and reclamation of the well site. If the
7permittee fails to plug the well in accordance with this
8Section, the owner of the well shall be responsible for
9complying with this Section.
10    (b) Prior to conducting high volume horizontal hydraulic
11fracturing operations at a well site, the permittee shall cause
12to be plugged all previously unplugged well bores within 750
13feet of any part of the horizontal well bore that penetrated
14within 400 vertical feet of the formation that will be
15stimulated as part of the high volume horizontal hydraulic
16fracturing operations.
17    (c) For well sites where high volume horizontal hydraulic
18fracturing operations were permitted to occur, the operator
19shall restore any lands used by the operator other than the
20well site and production facility to a condition as closely
21approximating the pre-drilling conditions that existed before
22the land was disturbed for any stage of site preparation
23activities, drilling, and high volume horizontal hydraulic
24fracturing operations. Restoration shall be commenced within 6
25months of completion of the well site and completed within 12
26months. Restoration shall include, but is not limited to,

 

 

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1repair of tile lines, repair of fences and barriers, mitigation
2of soil compaction and rutting, application of fertilizer or
3lime to restore the fertility of disturbed soil, and repair of
4soil conservation practices such as terraces and grassed
5waterways.
6    (d) Unless contractually agreed to the contrary by the
7permittee and surface owner, the permittee shall restore the
8well site and production facility in accordance with the
9applicable restoration requirements in subsection (c) of this
10Section and shall remove all equipment and materials involved
11in site preparation, drilling, and high volume horizontal
12hydraulic fracturing operations, including tank batteries,
13rock and concrete pads, oil field debris, injection and flow
14lines at or above the surface, electric power lines and poles
15extending on or above the surface, tanks, fluids, pipes at or
16above the surface, secondary containment measures, rock or
17concrete bases, drilling equipment and supplies, and any and
18all other equipment, facilities, or materials used during any
19stage of site preparation work, drilling, or hydraulic
20fracturing operations at the well site. Work on the removal of
21equipment and materials at the well site shall begin within 6
22months after plugging the final well on the well site and be
23completed no later than 12 months after the last producing well
24on the well site has been plugged. Roads installed as part of
25the oil and gas operation may be left in place if provided in
26the lease or pursuant to agreement with the surface owner, as

 

 

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1applicable.
 
2    Section 1-96. Seismicity.
3    (a) For purposes of this Section, "induced seismicity"
4means an earthquake event that is felt, recorded by the
5national seismic network, and attributable to a Class II
6injection well used for disposal of flow-back and produced
7fluid from hydraulic fracturing operations.
8    (b) The Department shall adopt rules, in consultation with
9the Illinois State Geological Survey, establishing a protocol
10for controlling operational activity of Class II injection
11wells in an instance of induced seismicity.
12    (c) The rules adopted by the Department under this Section
13shall employ a "traffic light" control system allowing for low
14levels of seismicity while including additional monitoring and
15mitigation requirements when seismic events are of sufficient
16intensity to result in a concern for public health and safety.
17    (d) The additional mitigation requirements referenced in
18subsection (c) of this Section shall provide for either the
19scaling back of injection operations with monitoring for
20establishment of a potentially safe operation level or the
21immediate cessation of injection operations.
 
22    Section 1-97. Department mapping and reporting. On or
23before February 1, 2014, the Department shall, with the
24assistance of the Illinois State Geological Survey, submit a

 

 

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1report to the General Assembly and Governor identifying the
2following in Illinois and include any recommendations for
3additional legislative or administrative action on these
4items:
5    (a) the location of resources of shale gas and oil,
6conventional gas and oil, and process materials, including sand
7and other naturally occurring geologic materials used in high
8volume horizontal hydraulic fracturing operations;
9    (b) the potential impacts of high volume horizontal
10hydraulic fracturing operations on:
11        (1) sites owned, managed or leased by the Department;
12        (2) nature preserves;
13        (3) sites on the Register of Land and Water Reserves;
14        (4) the availability of water for human consumption and
15    general domestic use; and
16        (5) the potential for influencing natural seismic
17    activity.
18    Two years after the effective date of the first high volume
19horizontal hydraulic fracturing permit issued by the
20Department, and every 3 years thereafter, the Department shall
21prepare a report that examines the following:
22        (1) the number of high volume horizontal hydraulic
23    fracturing permits issued by the Department, on an annual
24    basis;
25        (2) a map showing the locations in this State where
26    high volume horizontal hydraulic fracturing operations

 

 

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1    have been permitted by the Department;
2        (3) identification of the latest scientific research,
3    best practices, and technological improvements related to
4    high volume horizontal hydraulic fracturing operations and
5    methods to protect the environment and public health;
6        (4) any confirmed environmental impacts in this State
7    due to high volume horizontal hydraulic fracturing
8    operations, including, but not limited to, any reportable
9    release of hydraulic fracturing flowback, hydraulic
10    fracturing fluid, and hydraulic fracturing additive;
11        (5) confirmed public health impacts in this State due
12    to high volume horizontal hydraulic fracturing operations;
13        (6) a comparison of the revenues generated under
14    subsection (e) of Section 1-35 of this Act to the
15    Department's costs associated with implementing and
16    administering provisions of this Act;
17        (7) a comparison of the revenues generated under
18    subsection (e) of Section 1-87 of this Act to the Agency's
19    costs associated with implementing and administering
20    provisions of this Act;
21        (7.5) a summary of revenues generated annually from
22    income, ad valorem, sales, and any other State and local
23    taxes applicable to activity permitted under this Act by
24    the Department, including an estimate of the income tax
25    generated from lease payments and royalty payments;
26        (8) a description of any modifications to existing

 

 

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1    programs, practices, or rules related to high volume
2    horizontal hydraulic fracturing operations made by the
3    Department;
4        (9) any problems or issues the Department identifies as
5    it implements and administers the provisions of this Act;
6        (10) any recommendations for legislative action by the
7    General Assembly to address the findings in the report; and
8        (11) any other information the Department deems
9    relevant regarding its specific experiences implementing
10    and administering the provisions of this Act and,
11    generally, high volume horizontal hydraulic fracturing
12    operations.
13    The first report shall also examine any studies issued by
14the United States Environmental Protection Agency regarding
15high volume horizontal hydraulic fracturing operations. The
16report required by this Section shall be provided to the
17General Assembly and Governor.
 
18    Section 1-98. Well and hydraulic fracturing contractor
19licensing.
20    (a) No contractor may drill, construct, deepen, or convert
21a well where high volume horizontal hydraulic fracturing
22operations are planned or occurring or engage in the occupation
23of a well contractor unless the contractor holds a valid
24license as a well contractor issued by the Department under
25this Section. The licensing requirements of this subsection (a)

 

 

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1do not apply to an individual who performs labor or services
2for a licensed well contractor at the direction and under the
3personal supervision of a licensed well contractor.
4    (b) No contractor may conduct high volume horizontal
5hydraulic fracturing operations or engage in the occupation of
6a hydraulic fracturing contractor unless the contractor holds a
7valid license as a hydraulic fracturing contractor issued by
8the Department under this Section. The licensing requirements
9of this subsection (b) do not apply to an individual who
10performs labor or services for a licensed hydraulic fracturing
11contractor at the direction and under the personal supervision
12of a licensed hydraulic fracturing contractor.
13    (c) Applications for a license under this Section, or for
14renewal of a license under this Section, and applications for
15examination shall be made to the Department in writing and
16under oath or affirmation, upon forms prescribed and furnished
17by the Department. The applications shall contain any
18information that the Department deems necessary in order to
19carry out the provisions of this Act.
20    (d) The Department shall issue a well contractor license to
21any applicant who:
22        (1) is at least 18 years of age;
23        (2) is a citizen of the United States or has declared
24    his or her intention to become a citizen of the United
25    States;
26        (3) possesses a good moral character;

 

 

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1        (4) has made a satisfactory grade on the well
2    contractor examination; and
3        (5) has paid the fee provided in this Section.
4    Any person holding a valid water well contractor's license
5issued under the Water Well and Pump Installation Contractor's
6License Act may apply for and receive, without examination or
7fee, a well contractor's license, provided that all other
8requirements of this Section are met.
9    (e) The Department shall issue a hydraulic fracturing
10contractor license to any applicant who:
11        (1) is at least 18 years of age;
12        (2) is a citizen of the United States or has declared
13    his or her intention to become a citizen of the United
14    States;
15        (3) possesses a good moral character;
16        (4) has made a satisfactory grade on the hydraulic
17    fracturing examination; and
18        (5) has paid the fee provided in this Section.
19    (f) Licenses issued under this Section shall be serially
20numbered, signed by the Director, and issued under the seal of
21the Department. The licensee shall conspicuously display his or
22her license at his or her principal place of business.
23    (g) All licenses issued under this Section shall expire on
24the next January 31 after the date of issuance, except that a
25license issued after October 31 and before January 31 shall
26expire on the next January 31 after the license has been in

 

 

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1effect for one year. A license may be renewed for an ensuing
2license year without examination by applying and paying the
3prescribed fee at least 30 days before the expiration date of
4the current license and the application shall extend the period
5of validity of the current license until a new license is
6received or the Department refuses to issue a new license under
7the provisions of this Section. A license issued under this
8Section that has expired may be reinstated immediately upon
9payment of the reinstatement fee, provided, however, not more
10than 3 years have elapsed since the date of expiration. A
11license that has expired for more than 3 years may be restored
12only by payment of the restoration fee and submitting evidence
13satisfactory to the Department of the current qualifications
14and fitness of the registrant and by successfully passing the
15examination for the particular license for which he or she is
16applying.
17    A contractor seeking a renewal license under this Section
18shall provide substantial evidence that he or she has attended
19at least one continuing education session in the preceding 2
20years in order to qualify for a renewal license.
21    (h) The fee to be paid by an applicant for an examination
22to determine his fitness to receive a license under this
23Section is $50. The fee for the annual renewal of a license is
24$25. The fee to be paid for the reinstatement of a license that
25has lapsed less than 3 years is $10, plus all lapsed renewal
26fees. The fee to be paid for restoration of a license that has

 

 

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1lapsed more than 3 years is $150. There shall be no reduction
2in the fees because a license may be valid for less than a full
3license year.
4    (i) The Department may refuse to issue or renew, may
5suspend or revoke a license on any one or more of the following
6grounds:
7        (1) material misstatement in the application for
8    license;
9        (2) failure to have or retain the qualifications
10    required for the particular license;
11        (3) willful disregard or violation of this Act or of
12    any rule adopted by the Department under this Act; or
13    disregard or violation of any law of this State or of any
14    rule relating to well drilling or high volume horizontal
15    hydraulic fracturing operations;
16        (4) willfully aiding or abetting another in the
17    violation of this Act or any of its rules;
18        (5) incompetence in the performance of the work for
19    which the contractor is licensed under this Section;
20        (6) allowing the use of a license by someone other than
21    the person in whose name it was issued;
22        (7) conviction of any crime, an essential element of
23    which is misstatement, fraud, or dishonesty, conviction in
24    this State or another state of any crime which is a felony
25    under the laws of this State or the conviction in a federal
26    court of any felony; or

 

 

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1        (8) making substantial misrepresentations or false
2    promises of a character likely to influence, persuade, or
3    induce in connection with the occupation of a contractor.
4    (j) The Department, upon its own motion, shall verify the
5complaint in writing of any person, setting forth facts which,
6if proved, would constitute grounds for refusal, suspension, or
7revocation under this Section, investigate the actions of any
8applicant or any person or persons holding or claiming to hold
9a license. The Department shall, before refusing to issue or
10renew, and before suspension or revocation of a license, at
11least 10 days prior to the date set for the hearing, notify in
12writing the applicant for or holder of a license, hereinafter
13called the respondent, that a hearing shall be held on the date
14designated to determine whether the respondent is privileged to
15hold the license and shall afford the respondent an opportunity
16to be heard in person or by counsel. The written notice may be
17served by delivery personally to the respondent or by mailing
18the same by registered or certified mail to the place of
19business last specified by the respondent in the notification
20to the Department. At the time and place fixed in the notice,
21the Department shall proceed to hear the charges and both the
22respondent and the complainant shall be accorded ample
23opportunity to present, in person or by counsel, any
24statements, testimony, evidence, and argument as may be
25pertinent to the charges or to any defense to the charges. At
26the hearing, the Director or the person designated by the

 

 

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1Director of the Department may administer oaths.
2    The Department, over the signature of the Director, or the
3person designated by the Director, is authorized to subpoena
4and bring before the Department any person or persons in this
5State and to take testimony either orally or by deposition or
6by exhibit, with the same fees and mileage and in the same
7manner as prescribed by law in judicial proceedings in civil
8cases in circuit courts of this State.
9    The Department, at its expense, shall provide a
10stenographer to take down the testimony and preserve a record
11of all proceedings at the hearing of any case involving the
12refusal to issue or renew or the suspension or revocation of a
13license. The notice of hearing, complaint, and all other
14documents in the nature of pleadings and written motions filed
15in the proceedings, the transcript of testimony, and the orders
16of the Department shall be the record of the proceedings. The
17Department shall furnish a transcript of the record to any
18person or persons interested in the hearing upon the payment of
19$1 per page for each original transcript and $0.50 per page for
20each carbon copy of the transcript ordered with the original.
21The charge for any part of the transcript ordered and paid for
22before the writing of the original record shall be $0.50 per
23page for each carbon copy.
24    In any case involving the refusal to issue or renew or the
25suspension or revocation of license the Director of the
26Department after the hearing, or, if the respondent failed to

 

 

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1appear, on the date set for the hearing, shall enter an order
2of suspension, revocation, or refusal, as the case may require,
3or dismiss the case. A copy of the order shall be served upon
4the respondent by the Department either personally or by
5registered or certified mail as provided in this Section for
6the service of the notice of hearing. Within 20 days after the
7service, the respondent may present to the Department a motion
8in writing for a rehearing. This written motion shall specify
9the particular grounds for the motion. If no motion for
10rehearing is filed, then upon the expiration of the time
11specified for filing the motion, or if a motion for rehearing
12is denied, then upon the denial, the original order of the
13Director shall become final. No more than one rehearing shall
14be allowed. If the respondent shall order and pay for a
15transcript of the record within the time for filing a motion
16for rehearing, then the 20 day period within which the motion
17may be filed shall commence after the delivery of the
18transcript to the respondent.
19    Any circuit court may, upon application of the Director of
20the Department or of the applicant or licensee against whom
21proceedings under this Section are pending, enter an order
22requiring the attendance of witnesses and their testimony, and
23the production of documents, papers, files, books, and records
24in connection with any hearing in any proceedings under this
25Section. The Court may compel obedience to its order by
26proceedings for contempt.

 

 

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1    (k) Any person affected by a final administrative decision
2of the Department may have the decision reviewed judicially by
3the circuit court of the county where the person resides. If
4the plaintiff in the review proceedings is not a resident of
5this State, the venue shall be in Sangamon County. The
6provisions of the Administrative Review Law and its rules shall
7apply to and govern all proceedings for the judicial review of
8final administrative decisions of the Department under this
9Act. The term "administrative decision" is defined as in
10Section 3-101 of the Code of Civil Procedure.
11    The Department shall not be required to certify any record
12to the court or file any answer in court or otherwise appear in
13any court in a judicial review proceeding, unless there is
14filed in the court hearing the complaint a receipt from the
15Department acknowledging payment of the costs of furnishing and
16certifying the record which costs shall be computed at the rate
17of $0.20 per page of the record. Exhibits shall be certified
18without cost. Failure on the part of the plaintiff to file a
19receipt in court shall be grounds for dismissal of the action.
20    (l) Upon the revocation or suspension of any license issued
21under this Section, the licensee shall surrender the license to
22the Department, and if the licensee fails to do so, the
23Department shall have the right to seize the license.
24    (m) The Department shall:
25        (1) fix and announce dates for examinations;
26        (2) prepare forms for application for a license under

 

 

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1    this Section, stating the scope of the examination;
2        (3) prepare and issue license certificates to
3    qualified applicants;
4        (4) with the aid of the Oil and Gas Well and Hydraulic
5    Fracturing Contractors Licensing Board, adopt rules for
6    the conduct of examinations and continuing education
7    sessions;
8        (5) adopt rules for hearings to suspend, revoke, or
9    reinstate licenses as provided in this Section; and
10        (6) maintain and publish annually a roster showing the
11    names and addresses of licensed well contractors and a
12    roster showing the names and addresses of licensed
13    hydraulic fracturing contractors; the Department may
14    impose a fee for each roster and the fee shall be set forth
15    in the rules.
16    The Department shall maintain a record in the Springfield
17office showing (i) the names and addresses of all licensees
18under this Section; (ii) the dates of issuance of the licenses;
19(iii) the date and substance of the charges set forth in any
20complaint for suspension or revocation of any license; (iv) the
21date and substance of all petitions for reinstatement of
22licenses; and (v) the final order on the complaints and
23petitions. Upon written request, the Department, in its
24discretion, shall make this information available to any
25licensee under this Section.
26    (n) The Department may adopt rules consistent with the

 

 

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1provisions of this Section for the administration and
2enforcement of this Section and may prescribe forms for the
3purposes of this Act.
4    (o) No action or counterclaim shall be maintained by any
5well contractor or hydraulic fracturing contractor in any court
6in this State with respect to any agreement, work, labor, or
7materials for which a license is required by this Section or to
8recover the agreed price or any compensation under an
9agreement, or for any work, labor, or materials for which a
10license is required by this Section without alleging and
11proving that the well contractor or hydraulic fracturing
12contractor had a valid license at the time of making the
13agreement and of supplying the labor, work, or materials.
 
14    Section 1-99. Oil and Gas Well and Hydraulic Fracturing
15Contractors Licensing Board.
16    (a) There is hereby created in the Department the Oil and
17Gas Well and Hydraulic Fracturing Contractors Licensing Board,
18which shall exercise its duties provided in this Act under the
19supervision of the Department. The Board shall consist of 6
20members, designated from time to time by the Director. A
21temporary board shall be appointed by the Department for the
22sole purpose of assisting with the process of initial licensing
23of well contractors and hydraulic fracturing contractors and
24shall remain in place until 2 years after the effective date of
25this Act. On the dissolution of the temporary board, the 6

 

 

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1members shall be well contractors who are licensed under
2Section 1-98 of this Act. In making appointments to the Board,
3the Director shall consider the recommendations of
4organizations that are representative of the oil and gas
5industry in this State. The Director shall consider statewide
6geographical representation when appointing the Board.
7    Members of the Board shall serve without compensation, but
8shall be reimbursed for actual expenses incurred.
9    (b) The Board shall advise and aid the Director in:
10        (1) preparing subject matter for continuing education
11    sessions relating to the drilling, construction,
12    deepening, or converting of a well where high volume
13    horizontal hydraulic fracturing operations are planned or
14    occurring, and preparing examinations to test the
15    knowledge and skills of applicants for a well contractor
16    license and the rules of the Department adopted under this
17    Act for construction of a well under this Act;
18        (2) preparing subject matter for continuing education
19    sessions relating to high volume horizontal hydraulic
20    fracturing operations and preparing examinations to test
21    the knowledge and skills of applicants for certification
22    relating to high volume horizontal hydraulic fracturing
23    operations and the rules of the Department adopted under
24    this Act for high volume horizontal hydraulic fracturing
25    operations;
26        (3) adopting rules relating to (i) continuing

 

 

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1    education requirements, (ii) examinations, and (iii)
2    hearings for suspension or revocation of or refusal to
3    issue or renew a license under Section 1-98 of this Act;
4        (4) holding examinations of applicants for licenses
5    under Section 1-98 of this Act at least once a year prior
6    to November 1 of each year;
7        (5) holding hearings for the revocation or suspension
8    of, or refusal to issue, renew, or reinstate licenses under
9    Section 1-98 of this Act;
10        (6) submitting recommendations to the Director from
11    time to time for the efficient administration of Section
12    1-98 of this Act;
13        (7) grading all tests and examinations for licenses
14    under Section 1-98 of this Act and promptly reporting the
15    results to the Director; and
16        (8) performing other duties as may be from time to time
17    prescribed by the Director.
 
18    Section 1-100. Criminal offenses; penalties.
19    (a) Except as otherwise provided in this Section, it shall
20be a Class A misdemeanor to knowingly violate this Act, its
21rules, or any permit or term or condition thereof, or knowingly
22to submit any false information under this Act or regulations
23adopted thereunder, or under any permit or term or condition
24thereof. A person convicted or sentenced under this subsection
25(a) shall be subject to a fine of not to exceed $10,000 for

 

 

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1each day of violation.
2    (b) It is unlawful for a person knowingly to violate:
3        (1) subsection (c) of Section 1-25 of this Act;
4        (2) subsection (d) of Section 1-25 of this Act;
5        (3) subsection (a) of Section 1-30 of this Act;
6        (4) paragraph (9) of subsection (c) of Section 1-75 of
7    this Act; or
8        (5) subsection (a) of Section 1-87 of this Act.
9    A person convicted or sentenced for any knowing violation
10of the requirements or prohibitions listed in this subsection
11(b) commits a Class 4 felony, and in addition to any other
12penalty prescribed by law is subject to a fine not to exceed
13$25,000 for each day of violation. A person who commits a
14second or subsequent knowing violation of the requirements or
15prohibitions listed in this subsection (b) commits a Class 3
16felony and, in addition to any other penalties provided by law,
17is subject to a fine not to exceed $50,000 for each day of
18violation.
19    (c) Any person who knowingly makes a false, fictitious, or
20fraudulent material statement, orally or in writing, to the
21Department or Agency as required by this Act, its rules, or any
22permit, term, or condition of a permit, commits a Class 4
23felony, and each false, fictitious, or fraudulent statement or
24writing shall be considered a separate violation. In addition
25to any other penalty prescribed by law, persons in violation of
26this subsection (c) is subject to a fine of not to exceed

 

 

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1$25,000 for each day of violation. A person who commits a
2second or subsequent knowing violation of this subsection (c)
3commits a Class 3 felony and, in addition to any other
4penalties provided by law, is subject to a fine not to exceed
5$50,000 for each day of violation.
6    (d) Any person who violates Section 1-98 of this Act
7commits a petty offense and shall be fined a sum of not less
8than $100. Any fine imposed shall be in addition to any other
9action that may be taken under this Act. Each day that a
10violation continues shall constitute a separate offense.
11    (e) Any criminal action provided for under this Section
12shall be brought by the State's Attorney of the county in which
13the violation occurred or by the Attorney General and shall be
14conducted in accordance with the applicable provision of the
15Code of Criminal Procedure of 1963. For criminal conduct in
16this Section, the period for commencing prosecution shall not
17begin to run until the offense is discovered by or reported to
18a State or local agency having authority to investigate
19violations of this Act.
 
20    Section 1-101. Violations; civil penalties and
21injunctions.
22    (a) Except as otherwise provided in this Section, any
23person who violates any provision of this Act or any rule or
24order adopted under this Act or any permit issued under this
25Act shall be liable for a civil penalty not to exceed $50,000

 

 

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1for the violation and an additional civil penalty not to exceed
2$10,000 for each day during which the violation continues.
3    (b) Any person who violates any requirements or
4prohibitions of provisions listed in this subsection (b) is
5subject to a civil penalty not to exceed $100,000 for the
6violation and an additional civil penalty not to exceed $20,000
7for each day during which the violation continues. The
8following are violations are subject to the penalties of this
9subsection (b):
10        (1) subsection (c) of Section 1-25 of this Act;
11        (2) subsection (d) of Section 1-25 of this Act;
12        (3) subsection (a) of Section 1-30 of this Act;
13        (4) paragraph (9) of subsection (c) of Section 1-75 of
14    this Act; or
15        (5) subsection (a) of Section 1-87 of this Act.
16    (c) Any person who knowingly makes, submits, causes to be
17made, or causes to be submitted a false report of pollution,
18diminution, or water pollution attributable to high volume
19horizontal hydraulic fracturing operations that results in an
20investigation by the Department or Agency under this Act shall
21be liable for a civil penalty not to exceed $1,000 for the
22violation.
23    (d) The penalty shall be recovered by a civil action before
24the circuit court of the county in which the well site is
25located or in the circuit court of Sangamon County. Venue shall
26be considered proper in either court. These penalties may, upon

 

 

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1the order of a court of competent jurisdiction, be made payable
2to the Environmental Protection Trust Fund, to be used in
3accordance with the provisions of the Environmental Protection
4Trust Fund Act.
5    (e) The State's Attorney of the county in which the
6violation occurred, or the Attorney General, may, at the
7request of the Department or on his or her own motion,
8institute a civil action for the recovery of costs, an
9injunction, prohibitory or mandatory, to restrain violations
10of this Act, any rule adopted under this Act, the permit or
11term or condition of the permit, or to require other actions as
12may be necessary to address violations of this Act, any rule
13adopted under this Act, the permit or term or condition of the
14permit.
15    (f) The State's Attorney of the county in which the
16violation occurred, or the Attorney General, shall bring
17actions under this Section in the name of the People of the
18State of Illinois. Without limiting any other authority that
19may exist for the awarding of attorney's fees and costs, a
20court of competent jurisdiction may award costs and reasonable
21attorney's fees, including the reasonable costs of expert
22witnesses and consultants, to the State's Attorney or the
23Attorney General in a case where he or she has prevailed
24against a person who has committed a knowing or repeated
25violation of this Act, any rule adopted under this Act, or the
26permit or term or condition of the permit.

 

 

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1    (g) All final orders imposing civil penalties under this
2Section shall prescribe the time for payment of those
3penalties. If any penalty is not paid within the time
4prescribed, interest on penalty at the rate set forth in
5subsection (a) of Section 1003 of the Illinois Income Tax Act,
6shall be paid for the period from the date payment is due until
7the date payment is received. However, if the time for payment
8is stayed during the pendency of an appeal, interest shall not
9accrue during stay.
 
10    Section 1-102. Other relief.
11    (a) Any person having an interest that is or may be
12adversely affected may commence a civil action on his or her
13own behalf to compel compliance with this Act against any
14governmental instrumentality or agency which is alleged to be
15in violation of the provisions of this Act or of any rule,
16order, or permit issued under this Act, or against any other
17person who is alleged to be in violation of this Act or of any
18rule, order, or permit issued under this Act. No action may be
19commenced under this subsection (a): (i) prior to 60 days after
20the plaintiff has given notice in writing of the alleged
21violation to the Department and to any alleged violator or (ii)
22if the State has commenced and is diligently prosecuting a
23civil action to require compliance with the provisions of this
24Act, or any rule, order, or permit issued under this Act.
25    (b) Any person having an interest that is or may be

 

 

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1adversely affected may commence a civil action against the
2Department on his or her own behalf to compel compliance with
3this Act where there is alleged a failure of the Department to
4perform any act or duty under this Act that is not
5discretionary with the Department. No action may be commenced
6under this subsection (b) prior to 60 days after the plaintiff
7has given notice in writing of the action to the Department,
8except that such action may be brought immediately after the
9notification in the case where the violation or order
10complained of constitutes an imminent threat to the health or
11safety of the plaintiff or would immediately affect a legal
12interest of the plaintiff.
13    (c) The court, in issuing any final order in any action
14brought under this Section, may award costs of litigation
15(including attorney and expert witness fees) to any party, on
16the basis of the importance of the proceeding and the
17participation of the parties to the efficient and effective
18enforcement of this Act. The court may, if a temporary
19restraining order or preliminary injunction is sought, require
20the filing of a bond or equivalent security in accordance with
21Part 1 of Article XI of the Code of Civil Procedure.
22    (d) Any person who is injured in his or her person or
23property through the violation by any operator of any rule,
24order, or permit issued under this Act may bring an action for
25damages (including reasonable attorney and expert witness
26fees). Nothing in this subsection (d) shall affect any of the

 

 

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1rights established by or limits imposed under the Workers'
2Compensation Act.
3    (e) Any action brought under this Section may be brought
4only in the county in which the high volume horizontal
5hydraulic fracturing operation complained of is located.
6    (f) In any action under this Section, the Department shall
7have an unconditional right to intervene.
8    (g) No existing civil or criminal remedy for any wrongful
9action shall be excluded or impaired by this Act.
10    (h) Nothing in this Section shall restrict any right that
11any person (or class of persons) may have under any statute or
12common law to seek enforcement of any of the provisions of this
13Act and the rules adopted under this Act, or to seek any other
14relief (and including relief against the United States or the
15Department).
 
16    Section 1-105. Violations, complaints, and notice;
17website.
18    The Department shall maintain a detailed database that is
19readily accessible to the public on the Department's website.
20The database shall show each violation found by the Department
21regarding high volume horizontal hydraulic fracturing
22operations and the associated well owners, operators, and
23subcontractors. When the Department determines that any person
24has violated this Act, the Department shall provide notice by
25U.S. Postal Service certified mail, return receipt requested,

 

 

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1of the Department's determination to all persons required to
2receive specific public notice under Section 1-40 of this Act
3within 7 calendar days after the determination. The Department
4shall also post the notice on the Department's website. The
5notice shall include a detailed, plain language description of
6the violation and a detailed, plain language description of all
7known risks to public health, life, property, aquatic life, and
8wildlife resulting from the violation.
 
9    Section 1-110. Public information; website.
10    (a) All information submitted to the Department under this
11Act is deemed public information, except information deemed to
12constitute a trade secret under Section 1-77 of this Act and
13private information and personal information as defined in the
14Freedom of Information Act.
15    (b) To provide the public and concerned citizens with a
16centralized repository of information, the Department shall
17create and maintain a comprehensive website dedicated to
18providing information concerning high volume horizontal
19hydraulic fracturing operations. The website shall contain,
20assemble, and link the documents and information required by
21this Act to be posted on the Department's or other agencies'
22websites. The Department shall also create and maintain an
23online searchable database that provides information related
24to high volume horizontal hydraulic fracturing operations on
25wells that, at a minimum, include, for each well it permits,

 

 

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1the identity of its operators, its waste disposal, its chemical
2disclosure information, and any complaints or violations under
3this Act. The website created under this Section shall allow
4users to search for completion reports by well name and
5location, dates of fracturing and drilling operations,
6operator, and by chemical additives.
 
7    Section 1-120. Applicable federal, State, and local laws.
8Compliance with this Act does not relieve responsibility for
9compliance with the Illinois Oil and Gas Act, the Illinois
10Environmental Protection Act, and other applicable federal,
11State, and local laws.
 
12    Section 1-125. Administrative review. All final
13administrative decisions, including issuance or denial of a
14permit, made by the Department under this Act are subject to
15judicial review under the Administrative Review Law and its
16rules.
 
17    Section 1-130. Rules. The Department shall have the
18authority to adopt rules as may be necessary to accomplish the
19purposes of this Act. Any and all rules adopted under this Act
20by the Department are not subject to the review, consultation,
21or advisement of the Oil and Gas Board.
 
22    Section 1-135. The Mines and Minerals Regulatory Fund. The

 

 

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1Mines and Minerals Regulatory Fund is created as a special fund
2in the State treasury. All moneys required by this Act to be
3deposited into the Fund shall be used by the Department to
4administer and enforce this Act and otherwise support the
5operations and programs of the Office of Mines and Minerals.
 
6    Section 1-140. Severability. The provisions of this Act are
7severable under Section 1.31 of the Statute on Statutes.
 
8
ARTICLE 2.

 
9    Section 2-5. Short title. This Act may be cited as the
10"Illinois Hydraulic Fracturing Tax Act".
 
11    Section 2-10. Definitions. For the purposes of this Act,
12unless the context otherwise requires:
13    "Barrel" for oil measurement means a barrel of 42 U.S.
14gallons of 231 cubic inches per gallon, computed at a
15temperature of 60 degrees Fahrenheit.
16    "Department" means the Illinois Department of Revenue.
17    "Fracturing" or "hydraulic fracturing" means the
18propagation of fractures in a rock layer, by a pressurized
19fluid used to release petroleum or natural gas (including shale
20gas, tight gas, and coal seam gas), for extraction.
21    "Gas" means natural gas taken from below the surface of the
22earth or water in this State, regardless of whether the gas is

 

 

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1taken from a gas well or from a well also productive of oil or
2any other product.
3    "Lease number" means the number assigned by the purchaser
4to identify each production unit.
5    "Oil" means petroleum or other crude oil, condensate,
6casinghead gasoline, or other mineral oil that is severed or
7withdrawn from below the surface of the soil or water in this
8State.
9    "Operator" means the person primarily responsible for the
10management and operation of oil or gas productions from a
11production unit.
12    "Person" means any natural individual, firm, partnership,
13association, joint stock company, joint adventure, public or
14private corporation, limited liability company, or a receiver,
15executor, trustee, guardian, or other representative appointed
16by order of any court.
17    "Producer" means any person owning, controlling, managing,
18or leasing any oil or gas property or oil or gas well, and any
19person who severs in any manner any oil or gas in this State,
20and shall include any person owning any direct and beneficial
21interest in any oil or gas produced, whether severed by such
22person or some other person on their behalf, either by lease,
23contract, or otherwise, including working interest owners,
24overriding royalty owners, or royalty owners.
25    "Production unit" means a unit of property designated by
26the Department of Natural Resources from which oil or gas is

 

 

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1severed.
2    "Purchaser" means a person who is the first purchaser of a
3product after severance from a production unit.
4    "Remove" or "removal" means the physical transportation of
5oil or gas off of the production unit where severed; and if the
6oil or gas is used on the premises where severed, or if the
7manufacture or conversion of oil or gas into refined products
8occurs on the premises where severed, oil or gas shall be
9deemed to have been removed on the date such use, manufacture,
10or conversion begins.
11    "Severed" or "severing" means: (1) the production of oil
12through extraction or withdrawal of the same, whether such
13extraction or withdrawal is by natural flow, mechanical flow,
14forced flow, pumping, or any other means employed to get the
15oil from below the surface of the soil or water and shall
16include the withdrawal by any means whatsoever of oil upon
17which the tax has not been paid, from any surface reservoir,
18natural or artificial, or from a water surface; and (2) the
19production of gas through the extraction or withdrawal of the
20same by any means whatsoever, from below the surface of the
21earth or water.
22    "Severance" means the taking of oil or gas from below the
23surface of the soil or water in any manner whatsoever.
24    "Value" means the sale price of oil or gas at the time of
25removal of the oil or gas from the production unit and if oil
26or gas is exchanged for something other than cash, or if no

 

 

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1sale occurs at the time of removal, or if the Department
2determines that the relationship between the buyer and the
3seller is such that the consideration paid, if any, is not
4indicative of the true value or market price, then the
5Department shall determine the value of the oil or gas subject
6to tax based on the cash price paid to one or more producers
7for the oil or gas or based on the cash price paid to producers
8for like quality oil or gas in the vicinity of the production
9unit at the time of the removal of the oil or gas from the
10production unit.
 
11    Section 2-15. Tax imposed.
12    (a) For oil and gas removed on or after July 1, 2013, there
13is hereby imposed a tax upon the severance and production of
14oil or gas from a well on a production unit in this State
15permitted, or required to be permitted, under the Illinois
16Hydraulic Fracturing Regulatory Act, for sale, transport,
17storage, profit, or commercial use. The tax shall be applied
18equally to all portions of the value of each barrel of oil
19severed and subject to such tax and to the value of the gas
20severed and subject to such tax. For a period of 24 months from
21the month in which oil or gas was first produced from the well,
22the rate of tax shall be 3% of the value of the oil or gas
23severed from the earth or water in this State. Thereafter, the
24rate of the tax shall be as follows:
25        (1) For oil:

 

 

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1            (A) where the average daily production from the
2        well during the month is less than 25 barrels, 3% of
3        the value of the oil severed from the earth or water;
4            (B) where the average daily production from the
5        well during the month is 25 or more barrels but less
6        than 50 barrels, 4% of the value of the oil severed
7        from the earth or water;
8            (C) where the average daily production from the
9        well during the month is 50 or more barrels but less
10        than 100 barrels, 5% of the value of the oil severed
11        from the earth or water; or
12            (D) where the average daily production from the
13        well during the month is 100 or more barrels, 6% of the
14        value of the oil severed from the earth or water.
15        (2) For gas, 6% of the value of the gas severed from
16    the earth or water.
17    If a well is required to be permitted under the Illinois
18Hydraulic Fracturing Regulatory Act, the tax imposed by this
19Section applies, whether or not a permit was obtained.
20    (b) Oil produced from a well whose average daily production
21is 15 barrels or less for the 12-month period immediately
22preceding the production is exempt from the tax imposed by this
23Act.
24    (c) For the purposes of the tax imposed by this Act the
25amount of oil produced shall be measured or determined, in the
26case of oil, by tank tables, without deduction for overage or

 

 

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1losses in handling. Allowance for any reasonable and bona fide
2deduction for basic sediment and water, and for correction of
3temperature to 60 degrees Fahrenheit will be allowed. For the
4purposes of the tax imposed by this Act the amount of gas
5produced shall be measured or determined, by meter readings
6showing 100% of the full volume expressed in cubic feet at a
7standard base and flowing temperature of 60 degrees Fahrenheit,
8and at the absolute pressure at which the gas is sold and
9purchased. Correction shall be made for pressure according to
10Boyle's law, and used for specific gravity according to the
11gravity at which the gas is sold and purchased.
12    (d) The following severance and production of gas shall be
13exempt from the tax imposed by this Act: gas injected into the
14earth for the purpose of lifting oil, recycling, or
15repressuring; gas used for fuel in connection with the
16operation and development for, or production of, oil or gas in
17the production unit where severed; and gas lawfully vented or
18flared; gas inadvertently lost on the production unit by reason
19of leaks, blowouts, or other accidental losses.
20    (e) All oil and gas removed from the premises where severed
21is subject to the tax imposed by this Act unless exempt under
22the terms of this Act.
23    (f) The liability for the tax accrues at the time the oil
24or gas is removed from the production unit.
 
25    Section 2-20. Taxable value; method of determining. The

 

 

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1Department may determine the value of products severed from a
2production unit when the operator and purchaser are affiliated
3persons, when the sale and purchase of products is not an arm's
4length transaction, or when products are severed and removed
5from a production unit and a value is not established for such
6products. The value determined by the Department shall be
7commensurate with the actual price received for products of
8like quality, character, and use which are severed in the same
9field or area. If there are no sales of products of like
10quality, character, and use severed in the same field or area,
11then the Department shall establish a reasonable value based on
12sales of products of like quality, character, and use which are
13severed in other areas of the State, taking into consideration
14any other relevant factors.
 
15    Section 2-25. Withholding of tax. Any purchaser who makes
16a monetary payment to a producer for his or her portion of the
17value of products from a production unit shall withhold from
18such payment the amount of tax due from the producer. Any
19purchaser who pays any tax due from a producer shall be
20entitled to reimbursement from the producer for the tax so paid
21and may take credit for such amount from any monetary payment
22to the producer for the value of products. To the extent that a
23purchaser required to collect the tax imposed by this Act has
24actually collected that tax, such tax is held in trust for the
25benefit of the State of Illinois.
 

 

 

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1    Section 2-30. Payment and collection of tax.
2    (a) For oil and gas removed on or after July 1, 2013, the
3tax incurred under this Act shall be due and payable on or
4before the 30th day of the month following the end of the month
5in which the oil or gas is removed from the production unit.
6The tax is upon the producers of such oil or gas in the
7proportion to their respective beneficial interests at the time
8of severance. The first purchaser of any oil or gas sold shall
9collect the amount of the tax due from the producers by
10deducting and withholding such amount from any payments made by
11such purchaser to the producers and shall remit the tax in this
12Act.
13    In the event the tax shall be withheld by a purchaser from
14payments due a producer and such purchaser fails to make
15payment of the tax to the State as required herein, the first
16purchaser shall be liable for the tax. However, in the event a
17first purchaser fails to pay the tax withheld from a producer's
18payment, the producer's interest remains subject to any lien
19filed pursuant to subsection (c) of this Section. A producer
20shall be entitled to bring an action against such purchaser to
21recover the amount of tax so withheld together with penalties
22and interest which may have accrued by failure to make such
23payment. A producer shall be entitled to all attorney fees and
24court costs incurred in such action. To the extent that a
25producer liable for the tax imposed by this Act collects the

 

 

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1tax, and any penalties and interest, from a purchaser, such
2tax, penalties, and interest are held in trust by the producer
3for the benefit of the State of Illinois.
4    (b) For all production units a first purchaser begins to
5purchase oil or gas from on or after July 1, 2013, the first
6purchaser is required to withhold and remit the tax imposed by
7this Act to the Department from the oil and gas purchased from
8the production unit unless the first purchaser obtains from the
9operator an exemption certificate signed by the operator
10stating that the production unit is not subject to the tax
11imposed by this Act. The exemption certificate must include the
12following information:
13        (1) name and address of the operator;
14        (2) name of the production unit;
15        (3) number assigned to the production unit by the first
16    purchaser, if available;
17        (4) legal description of the production unit; and
18        (5) a statement by the operator that the production
19    unit is exempt from the tax imposed by the Illinois
20    Hydraulic Fracturing Tax Act.
21    If a first purchaser obtains an exemption certificate that
22contains the required information and reasonably relies on the
23exemption certificate and it is subsequently determined by the
24Department that the production unit is subject to the tax
25imposed by this Act, the Department will collect any tax that
26is due from the operator and producers, and the first purchaser

 

 

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1is relieved of any liability.
2    (c) Notwithstanding subsection (a) of this Section, the tax
3is a lien on the oil and gas from the time of severance from the
4land or under the water until the tax and all penalties and
5interest are fully paid, and the State shall have a lien on all
6the oil or gas severed from the production unit in this State
7in the hands of the operator, any producer or the first or any
8subsequent purchaser thereof to secure the payment of the tax.
9If a lien is filed by the Department, the purchaser shall
10withhold from producers or operators the amount of tax, penalty
11and interest identified in the lien.
 
12    Section 2-35. Registration of purchasers. A person who
13engages in business as a purchaser of oil or gas in this State
14shall register with the Department. Application for a
15certificate of registration shall be made to the Department
16upon forms furnished by the Department and shall contain any
17reasonable information the Department may require. Upon
18receipt of the application for a certificate of registration in
19proper form, the Department shall issue to the applicant a
20certificate of registration.
 
21    Section 2-40. Inspection of records by the Department;
22subpoena power, contempt. The Department shall have the power
23to require any operator, producer, transporter, or person
24purchasing any oil or gas severed from the earth or water to

 

 

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1furnish any additional information deemed to be necessary for
2the purpose of computing the amount of the tax, and for such
3purpose to examine the meter and other charts, books, records,
4and all files of such person, and for such purpose the
5Department shall have the power to issue subpoenas and examine
6witnesses under oath, and if any witness shall fail or refuse
7to appear at the request of the director, or refuses access to
8books, records, and files, the circuit court of the proper
9county, or the judge thereof, on application of the Department,
10shall compel obedience by proceedings for contempt, as in the
11case of disobedience of the requirements of a subpoena issued
12from such court or a refusal to testify therein.
 
13    Section 2-45. Purchaser's return and tax remittance. Each
14purchaser shall make a return to the Department showing the
15quantity of oil or gas purchased during the month for which the
16return is filed, the price paid therefore, total value, the
17name and address of the operator or other person from whom the
18same was purchased, a description of the production unit in the
19manner prescribed by the Department from which such oil or gas
20was severed and the amount of tax due from each production unit
21for each calendar month. All taxes due, or to be remitted, by
22the purchaser shall accompany this return. The return shall be
23filed on or before the 30th day of the month after the calendar
24month for which the return is required. The Department may
25require any additional report or information it may deem

 

 

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1necessary for the proper administration of this Act.
2    Such returns shall be filed electronically in the manner
3prescribed by the Department. Purchasers shall make all
4payments of that tax to the Department by electronic funds
5transfer unless, as provided by rule, the Department grants an
6exception upon petition of a purchaser. Purchasers' returns
7must be accompanied by appropriate computer generated magnetic
8media supporting schedule data in the format required by the
9Department, unless, as provided by rule, the Department grants
10an exception upon petition of a purchaser.
 
11    Section 2-50. Operator returns; payment of tax.
12    (a) If, on or after July 1, 2013, oil or gas is transported
13off the production unit where severed by the operator, used on
14the production unit where severed, or if the manufacture and
15conversion of oil and gas into refined products occurs on the
16production unit where severed, the operator is responsible for
17remitting the tax imposed under subsections (a) of Section 15,
18on or before the 30th day of the month following the end of the
19calendar month in which the oil and gas is removed from the
20production unit, and such payment shall be accompanied by a
21return to the Department showing the gross quantity of oil or
22gas removed during the month for which the return is filed, the
23price paid therefore, and if no price is paid therefore, the
24value of the oil and gas, a description of the production unit
25from which such oil or gas was severed, and the amount of tax.

 

 

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1The Department may require any additional information it may
2deem necessary for the proper administration of this Act.
3    (b) Operators shall file all returns electronically in the
4manner prescribed by the Department unless, as provided by
5rule, the Department grants an exception upon petition of an
6operator. Operators shall make all payments of that tax to the
7Department by electronic funds transfer unless, as provided by
8rule, the Department grants an exception upon petition of an
9operator. Operators' returns must be accompanied by
10appropriate computer generated magnetic media supporting
11schedule data in the format required by the Department, unless,
12as provided by rule, the Department grants an exception upon
13petition of a purchaser.
14    (c) Any operator who makes a monetary payment to a producer
15for his or her portion of the value of products from a
16production unit shall withhold from such payment the amount of
17tax due from the producer. Any operator who pays any tax due
18from a producer shall be entitled to reimbursement from the
19producer for the tax so paid and may take credit for such
20amount from any monetary payment to the producer for the value
21of products. To the extent that an operator required to collect
22the tax imposed by this Act has actually collected that tax,
23such tax is held in trust for the benefit of the State of
24Illinois.
25    (d) In the event the operator fails to make payment of the
26tax to the State as required herein, the operator shall be

 

 

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1liable for the tax. A producer shall be entitled to bring an
2action against such operator to recover the amount of tax so
3withheld together with penalties and interest which may have
4accrued by failure to make such payment. A producer shall be
5entitled to all attorney fees and court costs incurred in such
6action. To the extent that a producer liable for the tax
7imposed by this Act collects the tax, and any penalties and
8interest, from an operator, such tax, penalties, and interest
9are held in trust by the producer for the benefit of the State
10of Illinois.
11    (e) When the title to any oil or gas severed from the earth
12or water is in dispute and the operator of such oil or gas is
13withholding payments on account of litigation, or for any other
14reason, such operator is hereby authorized, empowered and
15required to deduct from the gross amount thus held the amount
16of the tax imposed and to make remittance thereof to the
17Department as provided in this Section.
18    (f) An operator required to file a return and pay the tax
19under this Section shall register with the Department.
20Application for a certificate of registration shall be made to
21the Department upon forms furnished by the Department and shall
22contain any reasonable information the Department may require.
23Upon receipt of the application for a certificate of
24registration in proper form, the Department shall issue to the
25applicant a certificate of registration.
26    (g) If oil or gas is transported off the production unit

 

 

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1where severed by the operator and sold to a purchaser or
2refiner, the State shall have a lien on all the oil or gas
3severed from the production unit in this State in the hands of
4the operator, the first or any subsequent purchaser thereof, or
5refiner to secure the payment of the tax. If a lien is filed by
6the Department, the purchaser or refiner shall withhold from
7the operator the amount of tax, penalty and interest identified
8in the lien.
 
9    Section 2-55. Tax withholding and remittance when title to
10minerals disputed. When the title to any oil or gas severed
11from the earth or water is in dispute and the purchaser of such
12oil or gas is withholding payments on account of litigation, or
13for any other reason, such purchaser is hereby authorized,
14empowered and required to deduct from the gross amount thus
15held the amount of the tax imposed and to make remittance
16thereof to the Department as provided in this Act.
 
17    Section 2-60. Transporters. When requested by the
18Department, all transporters of oil or gas out of, within or
19across the State of Illinois shall be required to furnish the
20Department such information relative to the transportation of
21such oil or gas as the Department may require. The Department
22shall have authority to inspect bills of lading, waybills,
23meter, or other charts, documents, books and records as may
24relate to the transportation of oil or gas in the hands of each

 

 

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1transporter. The Department shall further be empowered to
2demand the production of such bills of lading, waybills,
3charts, documents, books, and records relating to the
4transportation of oil or gas at any point in the State of
5Illinois.
 
6    Section 2-65. Rulemaking. The Department is hereby
7authorized to adopt any rules as may be necessary to administer
8and enforce the provisions of this Act.
 
9    Section 2-70. Incorporation by reference. All of the
10provisions of Sections 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5j, 6,
116a, 6b, 6c, 7, 8, 9, 10, 11, 11a, 12, and 13 of the "Retailers'
12Occupation Tax Act" which are not inconsistent with this Act,
13and all provisions of the Uniform Penalty and Interest Act
14shall apply, as far as practicable, to the subject matter of
15this Act to the same extent as if such provisions were included
16herein.
 
17    Section 2-75. Distribution of proceeds. All moneys
18received by the Department under this Act shall be paid into
19the General Revenue Fund in the State Treasury.
 
20
ARTICLE 3.

 
21    Section 3-150. The State Finance Act is amended by adding

 

 

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1Section 5.826 as follows:
 
2    (30 ILCS 105/5.826 new)
3    Sec. 5.826. The Mines and Minerals Regulatory Fund.
 
4
ARTICLE 9.

 
5    Section 99-999. Effective date. This Act takes effect upon
6becoming law.".