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1 | AN ACT concerning regulation.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | ARTICLE 1. | ||||||
5 | Section 1-1. Short title. This Act may be cited as the | ||||||
6 | Hydraulic Fracturing Regulatory Act. | ||||||
7 | Section 1-5. Definitions. For the purposes of this Act, | ||||||
8 | unless the context otherwise requires: | ||||||
9 | "Agency" means the Illinois Environmental Protection | ||||||
10 | Agency. | ||||||
11 | "Aquatic life" means all fish, reptiles, amphibians, | ||||||
12 | crayfish, and mussels. | ||||||
13 | "Aquifer" means saturated (with groundwater) soils and | ||||||
14 | geologic materials that are sufficiently permeable to readily | ||||||
15 | yield economically useful quantities (at least 70 gallons per | ||||||
16 | minute) of fresh water to wells, springs, or streams under | ||||||
17 | ordinary hydraulic gradients.
"Aquifer" is limited to aquifers | ||||||
18 | identified as major sand and gravel aquifers in the Illinois | ||||||
19 | State Water Survey's Illinois Community Water Supply Wells map, | ||||||
20 | Map Series 2006-01. | ||||||
21 | "Base fluid" means the continuous phase fluid type, | ||||||
22 | including, but not limited to, water used in a high volume |
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1 | horizontal hydraulic fracturing operation.
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2 | "BTEX" means benzene, toluene, ethylbenzene, and xylene.
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3 | "Chemical" means any element, chemical compound, or | ||||||
4 | mixture of elements or compounds that has its own specific name | ||||||
5 | or identity, such as a Chemical Abstracts Service number, | ||||||
6 | regardless of whether the chemical is subject to the | ||||||
7 | requirements of paragraph (2) of subsection (g) of 29 Code of | ||||||
8 | Federal Regulations ยง1910.1200.
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9 | "Chemical Abstracts Service" means the division of the | ||||||
10 | American Chemical Society that is the globally recognized | ||||||
11 | authority for information on chemical substances.
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12 | "Chemical Abstracts Service number" or "CAS number" means | ||||||
13 | the unique identification number assigned to a chemical by the | ||||||
14 | Chemical Abstracts Service.
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15 | "Completion combustion device" means any ignition device, | ||||||
16 | installed horizontally or vertically, used in exploration and | ||||||
17 | production operations to combust otherwise vented emissions. | ||||||
18 | "Delineation well" means a well drilled in order to | ||||||
19 | determine the boundary of a field or producing reservoir. | ||||||
20 | "Department" means the Illinois Department of Natural | ||||||
21 | Resources.
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22 | "Diesel" means a substance having any one of the following | ||||||
23 | Chemical Abstracts Service Registry numbers: 68334-30-5; | ||||||
24 | 68476-34-6; 68476-30-2; 68476-31-3; 8008-20-6; or 68410-00-4. | ||||||
25 | "Diesel" includes any additional substances regulated by the | ||||||
26 | United States Environmental Protection Agency as diesel fuel |
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1 | used in hydraulic fracturing activities under the federal Safe | ||||||
2 | Drinking Water Act. | ||||||
3 | "Director" means the Director of Natural Resources.
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4 | "Enhanced oil recovery operation" means any secondary or | ||||||
5 | tertiary recovery method used in an effort to recover | ||||||
6 | hydrocarbons from a pool by injection of fluids, gases or other | ||||||
7 | substances to maintain, restore, or augment natural reservoir | ||||||
8 | energy, or by introducing gases, chemicals, other substances, | ||||||
9 | or heat, or by in-situ combustion, or by any combination | ||||||
10 | thereof. | ||||||
11 | "Flare" means a thermal oxidation system using an open, | ||||||
12 | enclosed, or semi-enclosed flame. "Flare" does not include | ||||||
13 | completion combustion devices as defined in this Section.
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14 | "Flowback period" means the process of allowing fluids to | ||||||
15 | flow from a well following a treatment, either in preparation | ||||||
16 | for a subsequent phase of treatment or in preparation for | ||||||
17 | cleanup and returning the well to production. "Flowback period" | ||||||
18 | begins when the material the hydraulic fracturing fluid returns | ||||||
19 | to the surface following hydraulic fracturing or | ||||||
20 | re-fracturing. "Flowback period" ends with either well shut in | ||||||
21 | or when the well is producing continuously to the flow line or | ||||||
22 | to a storage vessel for collection, whichever occurs first.
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23 | "Fresh water" means surface and subsurface water in its | ||||||
24 | natural state that is suitable for drinking water for human | ||||||
25 | consumption, domestic livestock, irrigation, industrial, | ||||||
26 | municipal and recreational purposes, that is capable of |
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1 | supporting aquatic life, and contains less than 10,000 ppm | ||||||
2 | total dissolved solids.
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3 | "Gas" means all natural gas, including casinghead gas, and | ||||||
4 | all other natural hydrocarbons not defined as oil.
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5 | "Groundwater" means any water below the land surface that | ||||||
6 | is within the saturated zone or geologic materials where the | ||||||
7 | fluid pressure in the pore space is equal to or greater than | ||||||
8 | atmospheric pressure.
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9 | "Health professional" means a physician, physician | ||||||
10 | assistant, nurse practitioner, a registered professional | ||||||
11 | nurse, emergency medical technician, or other individual | ||||||
12 | appropriately licensed or registered to provide health care | ||||||
13 | services.
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14 | "High volume horizontal hydraulic fracturing operations" | ||||||
15 | means all stages of a stimulation treatment of a horizontal | ||||||
16 | well as defined by this Act by the pressurized application of | ||||||
17 | more than 80,000 gallons per stage or more than 300,000 gallons | ||||||
18 | total of hydraulic fracturing fluid and proppant to initiate or | ||||||
19 | propagate fractures in a geologic formation to enhance | ||||||
20 | extraction or production of oil or gas.
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21 | "High volume horizontal hydraulic fracturing permit" means | ||||||
22 | the permit issued by the Department under this Act allowing | ||||||
23 | high volume horizontal hydraulic fracturing operations to | ||||||
24 | occur at a well site.
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25 | "High volume horizontal hydraulic fracturing treatment" | ||||||
26 | shall have the same definition as "High volume horizontal |
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1 | hydraulic fracturing operations".
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2 | "Horizontal well" means a well with a wellbore drilled | ||||||
3 | laterally at an angle of at least 80 degrees to the vertical | ||||||
4 | and with a horizontal projection exceeding 100 feet measured | ||||||
5 | from the initial point of penetration into the productive | ||||||
6 | formation through the terminus of the lateral in the same | ||||||
7 | common source of hydrocarbon supply.
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8 | "Hydraulic fracturing additive" means any chemical | ||||||
9 | substance or combination of chemicals, including, but not | ||||||
10 | limited to, any chemical or proppant that is added to a base | ||||||
11 | fluid for the purposes of preparing a hydraulic fracturing | ||||||
12 | fluid for a high volume horizontal hydraulic fracturing | ||||||
13 | operation.
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14 | "Hydraulic fracturing flowback" means all hydraulic | ||||||
15 | fracturing fluid and other fluids that return to the surface | ||||||
16 | after a stage of high volume horizontal hydraulic fracturing | ||||||
17 | operations has been completed and prior to the well being | ||||||
18 | placed in production.
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19 | "Hydraulic fracturing fluid" means the mixture of the base | ||||||
20 | fluid and all the hydraulic fracturing additives, used to | ||||||
21 | perform high volume horizontal hydraulic fracturing.
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22 | "Hydraulic fracturing string" means any pipe or casing | ||||||
23 | string used for the transport of hydraulic fracturing fluids | ||||||
24 | during the conduct of the high volume horizontal hydraulic | ||||||
25 | fracturing operations.
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26 | "Intake" means a pipe or other means to withdraw raw water |
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1 | from a water source.
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2 | "Landowner" means the legal title holder or owner of real | ||||||
3 | property and includes an owner of an undivided interest, a life | ||||||
4 | tenant, a remainderman, a public or private corporation, a | ||||||
5 | trustee under an active trust, and the holder of the beneficial | ||||||
6 | interest under a land trust. "Landowner" does not include a | ||||||
7 | mortgagee, a trustee under a trust deed in the nature of a | ||||||
8 | mortgage, a lien holder, or a lessee.
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9 | "Low pressure well" means a well with reservoir pressure | ||||||
10 | and vertical well depth such that 0.445 times the reservoir | ||||||
11 | pressure (in psia) minus 0.038 times the vertical well depth | ||||||
12 | (in feet) minus 67.578 psia is less than the flow line pressure | ||||||
13 | at the sales meter. | ||||||
14 | "Nature preserve" shall have the same meaning as provided | ||||||
15 | in Section 3.11 of the Illinois Natural Areas Preservation Act.
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16 | "Oil" means natural crude oil or petroleum and other | ||||||
17 | hydrocarbons, regardless of gravity, which are produced at the | ||||||
18 | well in liquid form by ordinary production methods or by the | ||||||
19 | use of an oil and gas separator and which are not the result of | ||||||
20 | condensation of gas after it leaves the underground reservoir.
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21 | "Operator" means the individual or entity controlling the | ||||||
22 | right to drill or produce a horizontal well in accordance with | ||||||
23 | the requirements of the Illinois Oil and Gas Act.
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24 | "Owner" shall have the same meaning as provided in Section | ||||||
25 | 1 of the Illinois Oil and Gas Act.
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26 | "Perennial stream" means a stream that has continuous flow |
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1 | in its stream bed during all of the calendar year. | ||||||
2 | "Permit" means a high volume horizontal hydraulic | ||||||
3 | fracturing permit.
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4 | "Permittee" means a person holding a high volume horizontal | ||||||
5 | hydraulic fracturing permit under this Act.
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6 | "Person" means any individual, partnership, | ||||||
7 | co-partnership, firm, company, limited liability company, | ||||||
8 | corporation, association, joint stock company, trust, estate, | ||||||
9 | political subdivision, state agency, or any other legal entity | ||||||
10 | or their legal representative, agent, or assigns.
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11 | "Pollution or diminution" means: | ||||||
12 | (1) in groundwater, any of the following:
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13 | (A) detection of benzene or any other carcinogen in | ||||||
14 | any Class I, Class II, or Class III groundwater;
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15 | (B) detection of any constituent in item (i) of | ||||||
16 | subparagraph (A) of paragraph (3) of subsection (a) of | ||||||
17 | 35 Ill. Adm. Code 620.310 equal to or above the listed | ||||||
18 | preventive response criteria in any Class I, Class II, | ||||||
19 | or Class III groundwater;
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20 | (C) detection of any constituent in 35 Ill. Adm. | ||||||
21 | Code 620.410 (a), (b), (c), (d) or (e) equal to or | ||||||
22 | above the listed standard in any Class I, Class II, or | ||||||
23 | Class III groundwater;
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24 | (D) detection of any constituent in Class III | ||||||
25 | groundwater equal to or above a standard established | ||||||
26 | under 35 Ill. Adm. Code 620.260; or
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1 | (E) detection of any constituent in Class I, Class | ||||||
2 | II, or Class III groundwater equal to or above a | ||||||
3 | cleanup objective listed in 35 Ill. Adm. Code 742.
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4 | (2) in surface water, exceeding any applicable numeric | ||||||
5 | or narrative standard in 35 Ill. Adm. Code Part 302 or Part | ||||||
6 | 304.
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7 | "Produced water" means water, regardless of chloride and | ||||||
8 | total dissolved solids content, that is produced in conjunction | ||||||
9 | with oil or natural gas production or natural gas storage | ||||||
10 | operations, but does not include hydraulic fracturing | ||||||
11 | flowback.
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12 | "Proppant" means sand or any natural or man-made material | ||||||
13 | that is used during high volume horizontal hydraulic fracturing | ||||||
14 | operations to prop open the artificially created or enhanced | ||||||
15 | fractures.
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16 | "Public water supply" means all mains, pipes, and | ||||||
17 | structures through which water is obtained and distributed to | ||||||
18 | the public, including wells and well structures, intakes and | ||||||
19 | cribs, pumping stations, treatment plants, reservoirs, and | ||||||
20 | storage tanks and appurtenances, collectively or severally, | ||||||
21 | actually used or intended for use for the purpose of furnishing | ||||||
22 | water for drinking or general domestic use, and which serves at | ||||||
23 | least 15 service connections or which regularly serves at least | ||||||
24 | 25 persons at least 60 days per year.
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25 | "Register of Land and Water Reserves" means the list of | ||||||
26 | areas registered in accordance with Section 16 of the Illinois |
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1 | Natural Areas Preservation Act and Part 4010 of Title 17 of the | ||||||
2 | Illinois Administrative Code.
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3 | "Release" means any spilling, leaking, pumping, pouring, | ||||||
4 | emitting, emptying, discharging, injecting, escaping, | ||||||
5 | leaching, dumping, or disposing into the environment.
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6 | "Serious violation" means any violation set forth in 62 | ||||||
7 | Ill. Adm. Code 240.140(c).
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8 | "Service connection" means the opening, including all | ||||||
9 | fittings and appurtenances, at the water main through which | ||||||
10 | water is supplied to the user.
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11 | "Surface water" means all water that is open to the | ||||||
12 | atmosphere and subject to surface runoff.
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13 | "Total water volume" means the total quantity of water from | ||||||
14 | all sources used in the high volume horizontal hydraulic | ||||||
15 | fracturing operations, including surface water, groundwater, | ||||||
16 | produced water, or recycled water.
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17 | "True vertical depth" or "TVD" means the vertical distance | ||||||
18 | from a depth in a planned or existing wellbore or well to a | ||||||
19 | point at the surface.
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20 | "Water pollution" means any alteration of the physical, | ||||||
21 | thermal, chemical, biological, or radioactive properties of | ||||||
22 | any waters of the State, or the discharge of any contaminant | ||||||
23 | into any water of the State, as will or is likely to create a | ||||||
24 | nuisance or render the waters harmful, detrimental, or | ||||||
25 | injurious to public health, safety, or welfare, or to domestic, | ||||||
26 | commercial, industrial, agricultural, recreational, or other |
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1 | legitimate uses, or to livestock, wild animals, birds, or fish | ||||||
2 | or other aquatic life.
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3 | "Water source" means (1) any existing water well or | ||||||
4 | developed spring used for human or domestic animal consumption, | ||||||
5 | or (2) any river, perennial stream, aquifer, natural or | ||||||
6 | artificial lake, pond, wetland listed on the Register of Land | ||||||
7 | and Water Reserves, or reservoir.
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8 | "Well" means any drill hole required to be permitted under | ||||||
9 | the Illinois Oil and Gas Act.
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10 | "Well site" means surface areas, including the well, | ||||||
11 | occupied by all equipment or facilities necessary for or | ||||||
12 | incidental to high volume horizontal hydraulic fracturing | ||||||
13 | operations, drilling, production, or plugging a well.
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14 | "Wildcat well" means a well outside known fields or the | ||||||
15 | first well drilled in an oil or gas field where no other oil | ||||||
16 | and gas production exists. | ||||||
17 | "Wildlife" means any bird or mammal that are by nature wild | ||||||
18 | by way of distinction from those that are naturally tame and | ||||||
19 | are ordinarily living unconfined in a state of nature without | ||||||
20 | the care of man.
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21 | Section 1-10. Intergovernmental cooperation. The | ||||||
22 | Department shall have the primary authority to administer the | ||||||
23 | provisions of this Act. The Illinois State Geological Survey, | ||||||
24 | the Illinois State Water Survey, the Office of the State Fire | ||||||
25 | Marshal, and the Agency shall be advised of high volume |
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1 | horizontal hydraulic fracturing permit applications received | ||||||
2 | by the Department and lend assistance as required by the | ||||||
3 | provisions of this Act. | ||||||
4 | Section 1-15. Powers and duties. | ||||||
5 | (a) Except as otherwise provided, the Department shall | ||||||
6 | enforce this Act and all rules and orders adopted in accordance | ||||||
7 | with this Act.
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8 | (b) Except as otherwise provided, the Department shall have | ||||||
9 | jurisdiction and authority over all persons and property | ||||||
10 | necessary to enforce the provisions of this Act effectively. In | ||||||
11 | aid of this jurisdiction, the Director, or anyone designated in | ||||||
12 | writing by the Director, shall have the authority to administer | ||||||
13 | oaths and to issue subpoenas for the production of records or | ||||||
14 | other documents and for the attendance of witnesses at any | ||||||
15 | proceedings of the Department.
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16 | (c) The Department may authorize any employee of the | ||||||
17 | Department, qualified by training and experience, to perform | ||||||
18 | the powers and duties set forth in this Act.
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19 | (d) For the purpose of determining compliance with the | ||||||
20 | provisions of this Act and any orders or rules entered or | ||||||
21 | adopted under this Act, the Department shall have the right at | ||||||
22 | all times to go upon and inspect properties where high volume | ||||||
23 | horizontal hydraulic fracturing operations are being or have | ||||||
24 | been conducted.
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25 | (e) The Department shall make any inquiries as it may deem |
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1 | proper to determine whether a violation of this Act or any | ||||||
2 | orders or rules entered or adopted under this Act exists or is | ||||||
3 | imminent. In the exercise of these powers, the Department shall | ||||||
4 | have the authority to collect data; require testing and | ||||||
5 | sampling; to make investigation and inspections; to examine | ||||||
6 | properties, including records and logs; to examine, check, and | ||||||
7 | test hydrocarbon wells; to hold hearings; to adopt | ||||||
8 | administrative rules; and to take any action as may be | ||||||
9 | reasonably necessary to enforce this Act.
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10 | (f) Except as otherwise provided, the Department may | ||||||
11 | specify the manner in which all information required to be | ||||||
12 | submitted under this Act is submitted.
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13 | Section 1-20. Applicability. Except as provided in Section | ||||||
14 | 1-98 of this Act, this Act applies to all wells where high | ||||||
15 | volume horizontal hydraulic fracturing operations are planned, | ||||||
16 | have occurred, or are occurring in this State. The provisions | ||||||
17 | of this Act shall be in addition to the provisions of the | ||||||
18 | Illinois Oil and Gas Act. However, if there is a conflict, the | ||||||
19 | provisions of the Illinois Oil and Gas Act are superseded by | ||||||
20 | this Act. | ||||||
21 | Section 1-25. Setbacks and prohibitions. | ||||||
22 | (a) Except as otherwise provided in this Section, no well | ||||||
23 | site where high volume horizontal hydraulic fracturing | ||||||
24 | operations are proposed, planned, or occurring may be located |
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1 | as follows. Unless specified otherwise, all distances shall be | ||||||
2 | measured from the closest edge of the well site:
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3 | (1) within 500 feet measured horizontally from any | ||||||
4 | residence or place of worship unless the owner of the | ||||||
5 | residence or the governing body of the place of worship | ||||||
6 | otherwise expressly agrees in writing to a closer well | ||||||
7 | location;
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8 | (2) within 500 feet measured horizontally from the edge | ||||||
9 | of the property line from any school, hospital, or licensed | ||||||
10 | nursing home facility;
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11 | (3) within 500 feet measured horizontally from the | ||||||
12 | surface location of any existing water well or developed | ||||||
13 | spring used for human or domestic animal consumption, | ||||||
14 | unless the owner or owners of the well or developed spring | ||||||
15 | otherwise expressly agrees or agree in writing to a closer | ||||||
16 | well location;
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17 | (4) within 300 feet measured horizontally from the | ||||||
18 | center of a perennial stream or from the ordinary high | ||||||
19 | water mark of any river, natural or artificial lake, pond, | ||||||
20 | or reservoir;
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21 | (5) within 750 feet of a nature preserve or a site on | ||||||
22 | the Register of Land and Water Reserves;
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23 | (6) within 1,500 feet of a surface water or groundwater | ||||||
24 | intake of a public water supply; the distance from the | ||||||
25 | public water supply as identified by the Department shall | ||||||
26 | be measured as follows:
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1 | (A) For a surface water intake on a lake or | ||||||
2 | reservoir, the distance shall be measured from the | ||||||
3 | intake point on the lake or reservoir. | ||||||
4 | (B) For a surface water intake on a flowing stream, | ||||||
5 | the distance shall be measured from a semicircular | ||||||
6 | radius extending upstream of the surface water intake. | ||||||
7 | (C) For a groundwater source, the distance shall be | ||||||
8 | measured from the surface location of the wellhead or | ||||||
9 | the ordinary high water mark of the spring.
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10 | The distance restrictions under this subsection (a) shall | ||||||
11 | be determined as conditions exist at the time of the submission | ||||||
12 | of the permit application under this Act. | ||||||
13 | (b) Notwithstanding any other provision of this Section, | ||||||
14 | the owner of a water source identified in paragraph (4) of | ||||||
15 | subsection (a) of this Section that is wholly contained within | ||||||
16 | the owner's property may expressly agree in writing to a closer | ||||||
17 | well location.
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18 | (c) It is unlawful to inject or discharge hydraulic | ||||||
19 | fracturing fluid, produced water, BTEX, diesel, or petroleum | ||||||
20 | distillates into fresh water.
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21 | (d) It is unlawful to perform any high volume horizontal | ||||||
22 | hydraulic fracturing operations by knowingly or recklessly | ||||||
23 | injecting diesel.
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24 | Section 1-30. High volume horizontal hydraulic fracturing | ||||||
25 | permit required. |
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1 | (a) Notwithstanding any other provision of law, a person | ||||||
2 | may not drill, deepen, or convert a horizontal well where high | ||||||
3 | volume horizontal hydraulic fracturing operations are planned | ||||||
4 | or occurring or convert a vertical well into a horizontal well | ||||||
5 | where high volume horizontal hydraulic fracturing operations | ||||||
6 | are planned in this State, unless the person has been issued a | ||||||
7 | permit by the Department under this Act and has obtained all | ||||||
8 | applicable authorizations required by the Illinois Oil and Gas | ||||||
9 | Act.
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10 | (b) If multiple wells are to be stimulated using high | ||||||
11 | volume horizontal hydraulic fracturing operations from a | ||||||
12 | single well site, then a separate permit shall be obtained for | ||||||
13 | each well at the site.
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14 | Section 1-35. High volume horizontal hydraulic fracturing | ||||||
15 | permit application. | ||||||
16 | (a) Every applicant for a permit under this Act shall first | ||||||
17 | register with the Department at least 30 days before applying | ||||||
18 | for a permit. The Department shall make available a | ||||||
19 | registration form within 90 days after the effective date of | ||||||
20 | this Act. The registration form shall require the following | ||||||
21 | information:
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22 | (1) the name and address of the registrant and any | ||||||
23 | parent, subsidiary, or affiliate thereof;
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24 | (2) disclosure of all findings of a serious violation | ||||||
25 | or an equivalent violation under federal or state laws or |
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1 | regulations in the development or operation of an oil or | ||||||
2 | gas exploration or production site via hydraulic | ||||||
3 | fracturing by the applicant or any parent, subsidiary, or | ||||||
4 | affiliate thereof within the previous 5 years; and
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5 | (3) proof of insurance to cover injuries, damages, or | ||||||
6 | loss related to pollution or diminution in the amount of at | ||||||
7 | least $5,000,000, from an insurance carrier authorized, | ||||||
8 | licensed, or permitted to do this insurance business in | ||||||
9 | this State that holds at least an A- rating by A.M. Best & | ||||||
10 | Co. or any comparable rating service.
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11 | A registrant must notify the Department of any change in | ||||||
12 | the information identified in paragraphs (1), (2), or (3) of | ||||||
13 | this subsection (a) at least annually or upon request of the | ||||||
14 | Department.
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15 | (b) Every applicant for a permit under this Act must submit | ||||||
16 | the following information to the Department on an application | ||||||
17 | form provided by the Department:
| ||||||
18 | (1) the name and address of the applicant and any | ||||||
19 | parent, subsidiary, or affiliate thereof;
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20 | (2) the proposed well name and address and legal | ||||||
21 | description of the well site and its unit area;
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22 | (3) a statement whether the proposed location of the | ||||||
23 | well site is in compliance with the requirements of Section | ||||||
24 | 1-25 of this Act and a plat, which shows the proposed | ||||||
25 | surface location of the well site, providing the distance | ||||||
26 | in feet, from the surface location of the well site to the |
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1 | features described in subsection (a) of Section 1-25 of | ||||||
2 | this Act;
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3 | (4) a detailed description of the proposed well to be | ||||||
4 | used for the high volume horizontal hydraulic fracturing | ||||||
5 | operations including, but not limited to, the following | ||||||
6 | information:
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7 | (A) the approximate total depth to which the well | ||||||
8 | is to be drilled or deepened;
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9 | (B) the proposed angle and direction of the well;
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10 | (C) the actual depth or the approximate depth at | ||||||
11 | which the well to be drilled deviates from vertical;
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12 | (D) the angle and direction of any nonvertical | ||||||
13 | portion of the wellbore until the well reaches its | ||||||
14 | total target depth or its actual final depth; and
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15 | (E) the estimated length and direction of the | ||||||
16 | proposed horizontal lateral or wellbore;
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17 | (5) the estimated depth and elevation, according to the | ||||||
18 | most recent publication of the Illinois State Geological | ||||||
19 | Survey of Groundwater for the location of the well, of the | ||||||
20 | lowest potential fresh water along the entire length of the | ||||||
21 | proposed wellbore;
| ||||||
22 | (6) a detailed description of the proposed high volume | ||||||
23 | horizontal hydraulic fracturing operations, including, but | ||||||
24 | not limited to, the following:
| ||||||
25 | (A) the formation affected by the high volume | ||||||
26 | horizontal hydraulic fracturing operations, including, |
| |||||||
| |||||||
1 | but not limited to, geologic name and geologic | ||||||
2 | description of the formation that will be stimulated by | ||||||
3 | the operation;
| ||||||
4 | (B) the anticipated surface treating pressure | ||||||
5 | range;
| ||||||
6 | (C) the maximum anticipated injection treating | ||||||
7 | pressure;
| ||||||
8 | (D) the estimated or calculated fracture pressure | ||||||
9 | of the producing and confining zones; and
| ||||||
10 | (E) the planned depth of all proposed perforations | ||||||
11 | or depth to the top of the open hole section;
| ||||||
12 | (7) plat showing all known previous well bores within | ||||||
13 | 750 feet of any part of the horizontal well bore that | ||||||
14 | penetrated within 400 vertical feet of the formation that | ||||||
15 | will be stimulated as part of the high volume horizontal | ||||||
16 | hydraulic fracturing operations;
| ||||||
17 | (8) unless the applicant documents why the information | ||||||
18 | is not available at the time the application is submitted, | ||||||
19 | a chemical disclosure report identifying each chemical and | ||||||
20 | proppant anticipated to be used in hydraulic fracturing | ||||||
21 | fluid for each stage of the hydraulic fracturing operations | ||||||
22 | including the following:
| ||||||
23 | (A) the total volume of water anticipated to be | ||||||
24 | used in the hydraulic fracturing treatment of the well | ||||||
25 | or the type and total volume of the base fluid | ||||||
26 | anticipated to be used in the hydraulic fracturing |
| |||||||
| |||||||
1 | treatment, if something other than water;
| ||||||
2 | (B) each hydraulic fracturing additive anticipated | ||||||
3 | to be used in the hydraulic fracturing fluid, including | ||||||
4 | the trade name, vendor, a brief descriptor of the | ||||||
5 | intended use or function of each hydraulic fracturing | ||||||
6 | additive, and the Material Safety Data Sheet (MSDS), if | ||||||
7 | applicable;
| ||||||
8 | (C) each chemical anticipated to be intentionally | ||||||
9 | added to the base fluid, including for each chemical, | ||||||
10 | the Chemical Abstracts Service number, if applicable; | ||||||
11 | and
| ||||||
12 | (D) the anticipated concentration in the base | ||||||
13 | fluid, in percent by mass, of each chemical to be | ||||||
14 | intentionally added to the base fluid;
| ||||||
15 | (9) a certification of compliance with the Water Use | ||||||
16 | Act of 1983 and applicable regional water supply plans;
| ||||||
17 | (10) a fresh water withdrawal and management plan that | ||||||
18 | shall include the following information:
| ||||||
19 | (A) the source of the water, such as surface or | ||||||
20 | groundwater, anticipated to be used for water | ||||||
21 | withdrawals, and the anticipated withdrawal location;
| ||||||
22 | (B) the anticipated volume and rate of each water | ||||||
23 | withdrawal from each withdrawal location; | ||||||
24 | (C) the anticipated months when water withdrawals | ||||||
25 | shall be made from each withdrawal location;
| ||||||
26 | (D) the methods to be used to minimize water |
| |||||||
| |||||||
1 | withdrawals as much as feasible; and
| ||||||
2 | (E) the methods to be used for surface water | ||||||
3 | withdrawals to minimize adverse impact to aquatic | ||||||
4 | life. | ||||||
5 | Where a surface water source is wholly contained | ||||||
6 | within a single property, and the owner of the property | ||||||
7 | expressly agrees in writing to its use for water | ||||||
8 | withdrawals, the applicant is not required to include | ||||||
9 | this surface water source in the fresh water withdrawal | ||||||
10 | and management plan.
| ||||||
11 | (11) a plan for the handling, storage, transportation, | ||||||
12 | and disposal or reuse of hydraulic fracturing fluids and | ||||||
13 | hydraulic fracturing flowback. The plan shall identify the | ||||||
14 | specific Class II injection well or wells that will be used | ||||||
15 | to dispose of the hydraulic fracturing flowback. The plan | ||||||
16 | shall describe the capacity of the tanks to be used for the | ||||||
17 | capture and storage of flowback and of the lined reserve | ||||||
18 | pit to be used, if necessary, to temporarily store any | ||||||
19 | flowback in excess of the capacity of the tanks. | ||||||
20 | Identification of the Class II injection well or wells | ||||||
21 | shall be by name, identification number, and specific | ||||||
22 | location and shall include the date of the most recent | ||||||
23 | mechanical integrity test for each Class II injection well;
| ||||||
24 | (12) a well site safety plan to address proper safety | ||||||
25 | measures to be employed during high volume horizontal | ||||||
26 | hydraulic fracturing operations for the protection of |
| |||||||
| |||||||
1 | persons on the site as well as the general public. Within | ||||||
2 | 15 calendar days after submitting the permit application to | ||||||
3 | the Department, the applicant must provide a copy of the | ||||||
4 | plan to the county or counties in which hydraulic | ||||||
5 | fracturing operations will occur. Within 5 calendar days of | ||||||
6 | its receipt, the Department shall provide a copy of the | ||||||
7 | well site safety plan to the Office of the State Fire | ||||||
8 | Marshal;
| ||||||
9 | (13) a containment plan describing the containment | ||||||
10 | practices and equipment to be used and the area of the well | ||||||
11 | site where containment systems will be employed, and within | ||||||
12 | 5 calendar days of its receipt, the Department shall | ||||||
13 | provide a copy of the containment plan to the Office of the | ||||||
14 | State Fire Marshal;
| ||||||
15 | (14) a casing and cementing plan that describes the | ||||||
16 | casing and cementing practices to be employed, including | ||||||
17 | the size of each string of pipe, the starting point, and | ||||||
18 | depth to which each string is to be set and the extent to | ||||||
19 | which each string is to be cemented;
| ||||||
20 | (15) a traffic management plan that identifies the | ||||||
21 | anticipated roads, streets, and highways that will be used | ||||||
22 | for access to and egress from the well site. The traffic | ||||||
23 | management plan will include a point of contact to discuss | ||||||
24 | issues related to traffic management. Within 15 calendar | ||||||
25 | days after submitting the permit application to the | ||||||
26 | Department, the applicant must provide a copy of the |
| |||||||
| |||||||
1 | traffic management plan to the county or counties in which | ||||||
2 | the well site is located, and within 5 calendar days of its | ||||||
3 | receipt, the Department shall provide a copy of the traffic | ||||||
4 | management plan to the Office of the State Fire Marshal;
| ||||||
5 | (16) the names and addresses of all owners of any real | ||||||
6 | property within 1,500 feet of the proposed well site, as | ||||||
7 | disclosed by the records in the office of the recorder of | ||||||
8 | the county or counties;
| ||||||
9 | (17) drafts of the specific public notice and general | ||||||
10 | public notice as required by Section 1-40 of this Act;
| ||||||
11 | (18) statement that the well site at which the high | ||||||
12 | volume horizontal hydraulic fracturing operation will be | ||||||
13 | conducted will be restored in compliance with Section | ||||||
14 | 240.1181 of Title 62 of the Illinois Administrative Code | ||||||
15 | and Section 1-95 of this Act;
| ||||||
16 | (19) proof of insurance to cover injuries, damages, or | ||||||
17 | loss related to pollution in the amount of at least | ||||||
18 | $5,000,000; and
| ||||||
19 | (20) any other relevant information which the | ||||||
20 | Department may, by rule, require.
| ||||||
21 | (c) Where an application is made to conduct high volume | ||||||
22 | horizontal fracturing operations at a well site located within | ||||||
23 | the limits of any city, village, or incorporated town, the | ||||||
24 | application shall state the name of the city, village, or | ||||||
25 | incorporated town and be accompanied with a certified copy of | ||||||
26 | the official consent for the hydraulic fracturing operations to |
| |||||||
| |||||||
1 | occur from the municipal authorities where the well site is | ||||||
2 | proposed to be located. No permit shall be issued unless | ||||||
3 | consent is secured and filed with the permit application. In | ||||||
4 | the event that an amended location is selected, the original | ||||||
5 | permit shall not be valid unless a new certified consent is | ||||||
6 | filed for the amended location.
| ||||||
7 | (d) The hydraulic fracturing permit application shall be | ||||||
8 | accompanied by a bond as required by subsection (a) of Section | ||||||
9 | 1-65 of this Act.
| ||||||
10 | (e) Each application for a permit under this Act shall | ||||||
11 | include payment of a non-refundable fee of $13,500. Of this | ||||||
12 | fee, $11,000 shall be deposited into the Mines and Minerals | ||||||
13 | Regulatory Fund for the Department to use to administer and | ||||||
14 | enforce this Act and otherwise support the operations and | ||||||
15 | programs of the Office of Mines and Minerals. The remaining | ||||||
16 | $2,500 shall be deposited into the Illinois Clean Water Fund | ||||||
17 | for the Agency to use to carry out its functions under this | ||||||
18 | Act. The Department shall not initiate its review of the permit | ||||||
19 | application until the applicable fee under this subsection (e) | ||||||
20 | has been submitted to and received by the Department.
| ||||||
21 | (f) Each application submitted under this Act shall be | ||||||
22 | signed, under the penalty of perjury, by the applicant or the | ||||||
23 | applicant's designee who has been vested with the authority to | ||||||
24 | act on behalf of the applicant and has direct knowledge of the | ||||||
25 | information contained in the application and its attachments. | ||||||
26 | Any person signing an application shall also sign an affidavit |
| |||||||
| |||||||
1 | with the following certification:
| ||||||
2 | "I certify, under penalty of perjury as provided by law | ||||||
3 | and under penalty of refusal, suspension, or revocation of | ||||||
4 | a high volume horizontal hydraulic fracturing permit, that | ||||||
5 | this application and all attachments are true, accurate, | ||||||
6 | and complete to the best of my knowledge.".
| ||||||
7 | (g) The permit application shall be submitted to the | ||||||
8 | Department in both electronic and hard copy format. The | ||||||
9 | electronic format shall be searchable.
| ||||||
10 | (h) The application for a high volume horizontal hydraulic | ||||||
11 | fracturing permit may be submitted as a combined permit | ||||||
12 | application with the operator's application to drill on a form | ||||||
13 | as the Department shall prescribe. The combined application | ||||||
14 | must include the information required in this Section. If the | ||||||
15 | operator elects to submit a combined permit application, | ||||||
16 | information required by this Section that is duplicative of | ||||||
17 | information required for an application to drill is only | ||||||
18 | required to be provided once as part of the combined | ||||||
19 | application. The submission of a combined permit application | ||||||
20 | under this subsection shall not be interpreted to relieve the | ||||||
21 | applicant or the Department from complying with the | ||||||
22 | requirements of this Act or the Illinois Oil and Gas Act.
| ||||||
23 | (i) Upon receipt of a permit application, the Department | ||||||
24 | shall have no more than 60 calendar days from the date it | ||||||
25 | receives the permit application to approve, with any conditions | ||||||
26 | the Department may find necessary, or reject the application |
| |||||||
| |||||||
1 | for the high volume horizontal hydraulic fracturing permit. The | ||||||
2 | applicant may waive, in writing, the 60-day deadline upon its | ||||||
3 | own initiative or in response to a request by the Department.
| ||||||
4 | (j) If at any time during the review period the Department | ||||||
5 | determines that the permit application is not complete under | ||||||
6 | this Act, does not meet the requirements of this Section, or | ||||||
7 | requires additional information, the Department shall notify | ||||||
8 | the applicant in writing of the application's deficiencies and | ||||||
9 | allow the applicant to correct the deficiencies and provide the | ||||||
10 | Department any information requested to complete the | ||||||
11 | application. If the applicant fails to provide adequate | ||||||
12 | supplemental information within the review period, the | ||||||
13 | Department may reject the application.
| ||||||
14 | Section 1-40. Public notice. | ||||||
15 | (a) Within 5 calendar days after the Department's receipt | ||||||
16 | of the high volume horizontal hydraulic fracturing | ||||||
17 | application, the Department shall post notice of its receipt | ||||||
18 | and a copy of the permit application on its website. The notice | ||||||
19 | shall include the dates of the public comment period and | ||||||
20 | directions for interested parties to submit comments.
| ||||||
21 | (b) Within 5 calendar days after the Department's receipt | ||||||
22 | of the permit application and notice to the applicant that the | ||||||
23 | high volume horizontal hydraulic fracturing permit application | ||||||
24 | was received, the Department shall provide the Agency, the | ||||||
25 | Office of the State Fire Marshal, Illinois State Water Survey, |
| |||||||
| |||||||
1 | and Illinois State Geological Survey with notice of the | ||||||
2 | application.
| ||||||
3 | (c) The applicant shall provide the following public | ||||||
4 | notice: | ||||||
5 | (1) Applicants shall mail specific public notice by | ||||||
6 | U.S. Postal Service certified mail, return receipt | ||||||
7 | requested, within 3 calendar days after submittal of the | ||||||
8 | high volume horizontal hydraulic fracturing permit | ||||||
9 | application to the Department, to all persons identified as | ||||||
10 | owners of real property within 1,500 feet of the proposed | ||||||
11 | well site, as disclosed by the records in the office of the | ||||||
12 | recorder of the county or counties, and to each | ||||||
13 | municipality and county in which the well site is proposed | ||||||
14 | to be located.
| ||||||
15 | (2) Except as otherwise provided in this paragraph (2) | ||||||
16 | of subsection (c), applicants shall provide general public | ||||||
17 | notice by publication, once each week for 2 consecutive | ||||||
18 | weeks, beginning no later than 3 calendar days after | ||||||
19 | submittal of the high volume horizontal hydraulic | ||||||
20 | fracturing permit application to the Department, in a | ||||||
21 | newspaper of general circulation published in each county | ||||||
22 | where the well proposed for high volume hydraulic | ||||||
23 | fracturing operations is proposed to be located.
| ||||||
24 | If a well is proposed for high volume hydraulic | ||||||
25 | fracturing operations in a county where there is no daily | ||||||
26 | newspaper of general circulation, applicant shall provide |
| |||||||
| |||||||
1 | general public notice, by publication, once each week for 2 | ||||||
2 | consecutive weeks, in a weekly newspaper of general | ||||||
3 | circulation in that county beginning as soon as the | ||||||
4 | publication schedule of the weekly newspaper permits, but | ||||||
5 | in no case later than 10 days after submittal of the high | ||||||
6 | volume hydraulic fracturing permit application to the | ||||||
7 | Department. | ||||||
8 | (3) The specific and general public notices required | ||||||
9 | under this subsection shall contain the following | ||||||
10 | information:
| ||||||
11 | (A) the name and address of the applicant;
| ||||||
12 | (B) the date the application for a high volume | ||||||
13 | horizontal hydraulic fracturing permit was filed;
| ||||||
14 | (C) the dates for the public comment period and a | ||||||
15 | statement that anyone may file written comments about | ||||||
16 | any portion of the applicant's submitted high volume | ||||||
17 | horizontal hydraulic fracturing permit application | ||||||
18 | with the Department during the public comment period;
| ||||||
19 | (D) the proposed well name, reference number | ||||||
20 | assigned by the Department, and the address and legal | ||||||
21 | description of the well site and its unit area;
| ||||||
22 | (E) a statement that the information filed by the | ||||||
23 | applicant in their application for a high volume | ||||||
24 | horizontal hydraulic fracturing permit is available | ||||||
25 | from the Department through its website;
| ||||||
26 | (F) the Department's website and the address and |
| |||||||
| |||||||
1 | telephone number for the Department's Oil and Gas | ||||||
2 | Division;
| ||||||
3 | (G) a statement that any person having an interest | ||||||
4 | that is or may be adversely affected, any government | ||||||
5 | agency that is or may be affected, or the county board | ||||||
6 | of a county to be affected under a proposed permit, may | ||||||
7 | file written objections to a permit application and may | ||||||
8 | request a public hearing.
| ||||||
9 | (d) After providing the public notice as required under | ||||||
10 | paragraph (2) of subsection (c) of this Section, the applicant | ||||||
11 | shall supplement its permit application by providing the | ||||||
12 | Department with a certification and documentation that the | ||||||
13 | applicant fulfilled the public notice requirements of this | ||||||
14 | Section. The Department shall not issue a permit until the | ||||||
15 | applicant has provided the supplemental material required | ||||||
16 | under this subsection.
| ||||||
17 | (e) If multiple applications are submitted at the same time | ||||||
18 | for wells located on the same well site, the applicant may use | ||||||
19 | one public notice for all applications provided the notice is | ||||||
20 | clear that it pertains to multiple applications and conforms to | ||||||
21 | the requirements of this Section. Notice shall not constitute | ||||||
22 | standing for purposes of requesting a public hearing or for | ||||||
23 | standing to appeal the decision of the Department in accordance | ||||||
24 | with the Administrative Review Law.
| ||||||
25 | Section 1-45. Public comment periods. |
| |||||||
| |||||||
1 | (a) The public comment period shall begin 7 calendar days | ||||||
2 | after the Department's receipt of the permit application and | ||||||
3 | last for 30 calendar days.
| ||||||
4 | (b) Where a public hearing is conducted under Section 1-50 | ||||||
5 | of this Act, the Department may provide for an additional | ||||||
6 | public comment period of 15 days as necessary to allow for | ||||||
7 | comments in response to evidence and testimony presented at the | ||||||
8 | hearing. The additional public comment period shall begin on | ||||||
9 | the day after the public hearing.
| ||||||
10 | (c) During any public comment period, any person may file | ||||||
11 | written comments to the Department concerning any portion of | ||||||
12 | the permit application and any issue relating to the | ||||||
13 | applicant's compliance with the requirements of the Act and any | ||||||
14 | other applicable laws.
| ||||||
15 | (d) The Department may request that the applicant respond | ||||||
16 | to any substantive public comments obtained during the public | ||||||
17 | comment period.
| ||||||
18 | Section 1-50. High volume horizontal hydraulic fracturing | ||||||
19 | permit; hearing. | ||||||
20 | (a) When a permit application is submitted to conduct high | ||||||
21 | volume horizontal hydraulic fracturing operations for the | ||||||
22 | first time at a particular well site, any person having an | ||||||
23 | interest that is or may be adversely affected, any government | ||||||
24 | agency that is or may be affected, or the county board of a | ||||||
25 | county to be affected under a proposed permit, may file written |
| |||||||
| |||||||
1 | objections to the permit application and may request a public | ||||||
2 | hearing during the public comment period established under | ||||||
3 | subsection (a) of Section 1-45 of this Act. The request for | ||||||
4 | hearing shall contain a short and plain statement identifying | ||||||
5 | the person and stating facts demonstrating that the person has | ||||||
6 | an interest that is or may be adversely affected. The | ||||||
7 | Department shall hold a public hearing upon a request under | ||||||
8 | this subsection, unless the request is determined by the | ||||||
9 | Department to (i) lack an adequate factual statement that the | ||||||
10 | person is or may be adversely affected or (ii) be frivolous.
| ||||||
11 | (b) Prior to the commencement of a public hearing under | ||||||
12 | this Section, any person who could have requested the hearing | ||||||
13 | under subsection (a) of this Section may petition the | ||||||
14 | Department to participate in the hearing in the same manner as | ||||||
15 | the party requesting the hearing. The petition shall contain a | ||||||
16 | short and plain statement identifying the petitioner and | ||||||
17 | stating facts demonstrating that the petitioner is a person | ||||||
18 | having an interest that is or may be adversely affected. The | ||||||
19 | petitioner shall serve the petition upon the Department. Unless | ||||||
20 | the Department determines that the petition is frivolous, or | ||||||
21 | that the petitioner has failed to allege facts in support of an | ||||||
22 | interest that is or may be adversely affected, the petitioner | ||||||
23 | shall be allowed to participate in the hearing in the same | ||||||
24 | manner as the party requesting the hearing.
| ||||||
25 | (c) The public hearing to be conducted under this Section | ||||||
26 | shall comply with the contested case requirements of the |
| |||||||
| |||||||
1 | Illinois Administrative Procedure Act. The Department shall | ||||||
2 | establish rules and procedures to determine whether any request | ||||||
3 | for a public hearing may be granted in accordance with | ||||||
4 | subsection (a) of this Section, and for the notice and conduct | ||||||
5 | of the public hearing. These procedural rules shall include | ||||||
6 | provisions for reasonable notice to (i) the public and (ii) all | ||||||
7 | parties to the proceeding, which include the applicant, the | ||||||
8 | persons requesting the hearing, and the persons granted the | ||||||
9 | right to participate in the hearing pursuant to subsection (b) | ||||||
10 | of this Section, for the qualifications, powers, and | ||||||
11 | obligations of the hearing officer, and for reasonable | ||||||
12 | opportunity for all the parties to provide evidence and | ||||||
13 | argument, to respond by oral or written testimony to statements | ||||||
14 | and objections made at the public hearing, and for reasonable | ||||||
15 | cross-examination of witnesses. County boards and the public | ||||||
16 | may present their written objections or recommendations at the | ||||||
17 | public hearing. A complete record of the hearings and all | ||||||
18 | testimony shall be made by the Department and recorded | ||||||
19 | stenographically or electronically. The complete record shall | ||||||
20 | be maintained and shall be accessible to the public on the | ||||||
21 | Department's website until final release of the applicant's | ||||||
22 | performance bond.
| ||||||
23 | (d) At least 10 calendar days before the date of the public | ||||||
24 | hearing, the Department shall publish notice of the public | ||||||
25 | hearing in a newspaper of general circulation published in the | ||||||
26 | county where the proposed well site will be located.
|
| |||||||
| |||||||
1 | Section 1-53. High volume horizontal hydraulic fracturing | ||||||
2 | permit; determination; judicial review. | ||||||
3 | (a) The Department shall issue a high volume horizontal | ||||||
4 | hydraulic fracturing permit, with any conditions the | ||||||
5 | Department may find necessary, only if the record of decision | ||||||
6 | demonstrates that:
| ||||||
7 | (1) the well location restrictions of Section 1-25 of | ||||||
8 | this Act have been satisfied;
| ||||||
9 | (2) the application meets the requirements of Section | ||||||
10 | 1-35 of this Act;
| ||||||
11 | (3) the plans required to be submitted with the | ||||||
12 | application under Section 1-35 of this Act are adequate and | ||||||
13 | effective;
| ||||||
14 | (4) the proposed hydraulic fracturing operations will | ||||||
15 | be conducted in a manner that will protect the public | ||||||
16 | health and safety and prevent pollution or diminution of | ||||||
17 | any water source;
| ||||||
18 | (5) the work plan required under Section 1-80 of this | ||||||
19 | Act has been submitted to the Department;
| ||||||
20 | (6) the applicant or any parent, subsidiary, or | ||||||
21 | affiliate thereof has not failed to abate a violation of | ||||||
22 | this Act or the Illinois Oil and Gas Act;
| ||||||
23 | (7) the Class II injection wells to be used for | ||||||
24 | disposal of hydraulic fracturing flowback comply with all | ||||||
25 | applicable requirements for mechanical integrity testing, |
| |||||||
| |||||||
1 | including that the well has been tested within the previous | ||||||
2 | 5 years; and
| ||||||
3 | (8) there is no good cause to deny the permit under | ||||||
4 | subsection (a) of Section 1-60 of this Act.
| ||||||
5 | (b) For the purpose of determining whether to issue a | ||||||
6 | permit, the Department shall consider and the Department's | ||||||
7 | record of decision shall include:
| ||||||
8 | (1) the application for the high volume horizontal | ||||||
9 | hydraulic fracturing permit, including all documentation | ||||||
10 | required by Section 1-35 of this Act;
| ||||||
11 | (2) all written comments received during the public | ||||||
12 | comment periods and, if applicable, the complete record | ||||||
13 | from the public hearing held under Section 1-50 of this | ||||||
14 | Act;
| ||||||
15 | (3) all information provided by the applicant in | ||||||
16 | response to any public comments; and
| ||||||
17 | (4) any information known to the Department as the | ||||||
18 | public entity responsible for regulating high volume | ||||||
19 | horizontal hydraulic fracturing operations, including, but | ||||||
20 | not limited to, inspections of the proposed well site as | ||||||
21 | necessary to ensure adequate review of the application.
| ||||||
22 | (c) The Department shall, by U.S. Mail and electronic | ||||||
23 | transmission, provide the applicant with a copy of the high | ||||||
24 | volume horizontal hydraulic fracturing permit as issued or its | ||||||
25 | final administrative decision denying the permit to the | ||||||
26 | applicant and shall, by U.S. Mail or electronic transmission, |
| |||||||
| |||||||
1 | provide a copy of the permit as issued or the final | ||||||
2 | administrative decision to any person or unit of local | ||||||
3 | government who received specific public notice under Section | ||||||
4 | 1-40 of this Act or submitted comments or participated in any | ||||||
5 | public hearing under Section 1-50 of this Act.
| ||||||
6 | (d) The Department's decision to approve or deny a high | ||||||
7 | volume horizontal hydraulic fracturing permit shall be | ||||||
8 | considered a final administrative decision subject to judicial | ||||||
9 | review under the Administrative Review Law and the rules | ||||||
10 | adopted under that Law.
| ||||||
11 | (e) Following completion of the Department's review and | ||||||
12 | approval process, the Department's website shall indicate | ||||||
13 | whether an individual high volume horizontal hydraulic | ||||||
14 | fracturing permit was approved or denied and provide a copy of | ||||||
15 | the approval or denial.
| ||||||
16 | Section 1-55. High volume horizontal hydraulic fracturing | ||||||
17 | permit; conditions; restriction; modifications. | ||||||
18 | (a) Each permit issued by the Department under this Act | ||||||
19 | shall require the permittee to comply with all provisions of | ||||||
20 | this Act and all other applicable local, State, and federal | ||||||
21 | laws, rules, and regulations in effect at the time the permit | ||||||
22 | is issued. All plans submitted with the application under | ||||||
23 | Section 1-35 shall be conditions of the permit.
| ||||||
24 | (b) A permit issued under this Act shall continue in effect | ||||||
25 | until plugging and restoration in compliance with this Act and |
| |||||||
| |||||||
1 | the Illinois Oil and Gas Act are completed to the Department's | ||||||
2 | satisfaction. No permit may be transferred to another person | ||||||
3 | without approval of the Department.
| ||||||
4 | (c) No permit issued under this Act may be modified without | ||||||
5 | approval of the Department. If the Department determines that | ||||||
6 | the proposed modifications constitute a significant deviation | ||||||
7 | from the terms of the original application and permit approval, | ||||||
8 | or presents a serious risk to public health, life, property, | ||||||
9 | aquatic life, or wildlife, the Department shall provide the | ||||||
10 | opportunities for notice, comment, and hearing required under | ||||||
11 | Sections 1-45 and 1-50 of this Act. The Department shall | ||||||
12 | provide notice of the proposed modification and opportunity for | ||||||
13 | comment and hearing to the persons who received specific public | ||||||
14 | notice under Section 1-40 of this Act and shall publish the | ||||||
15 | notice and the proposed modification on its website. The | ||||||
16 | Department shall adopt rules regarding procedures for a permit | ||||||
17 | modification.
| ||||||
18 | Section 1-60. High volume horizontal hydraulic fracturing | ||||||
19 | permit; denial, suspension, or revocation. | ||||||
20 | (a) The Department may suspend, revoke, or refuse to issue | ||||||
21 | a high volume horizontal hydraulic fracturing permit under this | ||||||
22 | Act for one or more of the following causes:
| ||||||
23 | (1) providing incorrect, misleading, incomplete, or | ||||||
24 | materially untrue information in a permit application or | ||||||
25 | any document required to be filed with the Department;
|
| |||||||
| |||||||
1 | (2) violating any condition of the permit;
| ||||||
2 | (3) violating any provision of or any regulation | ||||||
3 | adopted under this Act or the Illinois Oil and Gas Act;
| ||||||
4 | (4) using fraudulent, coercive, or dishonest | ||||||
5 | practices, or demonstrating incompetence, | ||||||
6 | untrustworthiness, or financial irresponsibility in the | ||||||
7 | conduct of business in this State or elsewhere;
| ||||||
8 | (5) having a high volume horizontal hydraulic | ||||||
9 | fracturing permit, or its equivalent, revoked in any other | ||||||
10 | state, province, district, or territory for incurring a | ||||||
11 | material or major violation or using fraudulent or | ||||||
12 | dishonest practices; or
| ||||||
13 | (6) an emergency condition exists under which conduct | ||||||
14 | of the high volume horizontal hydraulic fracturing | ||||||
15 | operations would pose a significant hazard to public | ||||||
16 | health, aquatic life, wildlife, or the environment.
| ||||||
17 | (b) In every case in which a permit is suspended or | ||||||
18 | revoked, the Department shall serve notice of its action, | ||||||
19 | including a statement of the reasons for the action, either | ||||||
20 | personally or by certified mail, receipt return requested, to | ||||||
21 | the permittee.
| ||||||
22 | (c) The order of suspension or revocation of a permit shall | ||||||
23 | take effect upon issuance of the order. The permittee may | ||||||
24 | request, in writing, within 30 days after the date of receiving | ||||||
25 | the notice, a hearing. Except as provided under subsection (d) | ||||||
26 | of this Section, in the event a hearing is requested, the order |
| |||||||
| |||||||
1 | shall remain in effect until a final order is entered pursuant | ||||||
2 | to the hearing.
| ||||||
3 | (d) The order of suspension or revocation of a permit may | ||||||
4 | be stayed if requested by the permittee and evidence is | ||||||
5 | submitted demonstrating that there is no significant threat to | ||||||
6 | the public health, aquatic life, wildlife, or the environment | ||||||
7 | if the operation is allowed to continue.
| ||||||
8 | (e) The hearing shall be held at a time and place | ||||||
9 | designated by the Department. The Director of the Department or | ||||||
10 | any administrative law judge designated by him or her have the | ||||||
11 | power to administer oaths and affirmations, subpoena witnesses | ||||||
12 | and compel their attendance, take evidence, and require the | ||||||
13 | production of books, papers, correspondence, and other records | ||||||
14 | or information that he or she considers relevant or material.
| ||||||
15 | (f) The costs of the administrative hearing shall be set by | ||||||
16 | rule and shall be borne by the permittee.
| ||||||
17 | (g) The Department's decision to suspend or revoke a high | ||||||
18 | volume horizontal hydraulic fracturing permit is subject to | ||||||
19 | judicial review under the Administrative Review Law.
| ||||||
20 | Section 1-65. Hydraulic fracturing permit; bonds. | ||||||
21 | (a) An applicant for a high volume horizontal hydraulic | ||||||
22 | fracturing permit under this Act shall provide a bond, executed | ||||||
23 | by a surety authorized to transact business in this State. The | ||||||
24 | bond shall be in the amount of $50,000 per permit or a blanket | ||||||
25 | bond of $500,000 for all permits. If the applicant is required |
| |||||||
| |||||||
1 | to submit a bond to the Department under the Illinois Oil and | ||||||
2 | Gas Act, the applicant's submission of a bond under this | ||||||
3 | Section shall satisfy the bonding requirements provided for in | ||||||
4 | the Illinois Oil and Gas Act. In lieu of a bond, the applicant | ||||||
5 | may provide other collateral securities such as cash, | ||||||
6 | certificates of deposit, or irrevocable letters of credit under | ||||||
7 | the terms and conditions as the Department may provide by rule.
| ||||||
8 | (b) The bond or other collateral securities shall remain in | ||||||
9 | force until the well is plugged and abandoned. Upon abandoning | ||||||
10 | a well to the satisfaction of the Department and in accordance | ||||||
11 | with the Illinois Oil and Gas Act, the bond or other collateral | ||||||
12 | securities shall be promptly released by the Department. Upon | ||||||
13 | the release by the Department of the bond or other collateral | ||||||
14 | securities, any cash or collateral securities deposited shall | ||||||
15 | be returned by the Department to the applicant who deposited | ||||||
16 | it.
| ||||||
17 | (c) If, after notice and hearing, the Department determines | ||||||
18 | that any of the requirements of this Act or rules adopted under | ||||||
19 | this Act or the orders of the Department have not been complied | ||||||
20 | with within the time limit set by any notice of violation | ||||||
21 | issued under this Act, the permittee's bond or other collateral | ||||||
22 | securities shall be forfeited. Forfeiture under this | ||||||
23 | subsection shall not limit any duty of the permittee to | ||||||
24 | mitigate or remediate harms or foreclose enforcement by the | ||||||
25 | Department or the Agency. In no way will payment under this | ||||||
26 | bond exceed the aggregate penalty as specified.
|
| |||||||
| |||||||
1 | (d) When any bond or other collateral security is forfeited | ||||||
2 | under the provisions of this Act or rules adopted under this | ||||||
3 | Act, the Department shall collect the forfeiture without delay. | ||||||
4 | The surety shall have 30 days to submit payment for the bond | ||||||
5 | after receipt of notice by the permittee of the forfeiture.
| ||||||
6 | (e) All forfeitures shall be deposited in the Mines and | ||||||
7 | Minerals Regulatory Fund to be used, as necessary, to mitigate | ||||||
8 | or remediate violations of this Act or rules adopted under this | ||||||
9 | Act.
| ||||||
10 | Section 1-70. Well preparation, construction, and | ||||||
11 | drilling. | ||||||
12 | (a) This Section shall apply to all horizontal wells that | ||||||
13 | are to be completed using high volume horizontal hydraulic | ||||||
14 | fracturing operations under a high volume horizontal hydraulic | ||||||
15 | fracturing permit. The requirements of this Section shall be in | ||||||
16 | addition to any other laws or rules regarding wells and well | ||||||
17 | sites.
| ||||||
18 | (b) Site preparation standards shall be as follows: | ||||||
19 | (1) The access road to the well site must be located in | ||||||
20 | accordance with access rights identified in the Illinois | ||||||
21 | Oil and Gas Act and located as far as practical from | ||||||
22 | occupied structures, places of assembly, and property | ||||||
23 | lines of unleased property. | ||||||
24 | (2) Unless otherwise approved or directed by the | ||||||
25 | Department, all topsoil stripped to facilitate the |
| |||||||
| |||||||
1 | construction of the well pad and access roads must be | ||||||
2 | stockpiled, stabilized, and remain on site for use in | ||||||
3 | either partial or final reclamation. In the event it is | ||||||
4 | anticipated that the final reclamation shall take place in | ||||||
5 | excess of one year from drilling the well the topsoil may | ||||||
6 | be disposed of in any lawful manner provided the operator | ||||||
7 | reclaims the site with topsoil of similar characteristics | ||||||
8 | of the topsoil removed. | ||||||
9 | (3) Piping, conveyances, valves, and tanks in contact | ||||||
10 | with hydraulic fracturing fluid, hydraulic fracturing | ||||||
11 | flowback, or produced water must be constructed of | ||||||
12 | materials compatible with the composition of the hydraulic | ||||||
13 | fracturing fluid, hydraulic fracturing flowback, and | ||||||
14 | produced water.
| ||||||
15 | (4) The improvement, construction, or repair of a | ||||||
16 | publicly owned highway or roadway, if undertaken by the | ||||||
17 | owner, operator, permittee, or any other private entity, | ||||||
18 | shall be performed using bidding procedures outlined in the | ||||||
19 | Illinois Department of Transportation rules governing | ||||||
20 | local roads and streets or applicable bidding requirements | ||||||
21 | outlined in the Illinois Procurement Code as though the | ||||||
22 | project were publicly funded. | ||||||
23 | (c) Site maintenance standards shall be as follows: | ||||||
24 | (1) Secondary containment is required for all fueling | ||||||
25 | tanks. | ||||||
26 | (2) Fueling tanks shall be subject to Section 1-25 of |
| |||||||
| |||||||
1 | this Act. | ||||||
2 | (3) Fueling tank filling operations shall be | ||||||
3 | supervised at the fueling truck and at the tank if the tank | ||||||
4 | is not visible to the fueling operator from the truck. | ||||||
5 | (4) Troughs, drip pads, or drip pans are required | ||||||
6 | beneath the fill port of a fueling tank during filling | ||||||
7 | operations if the fill port is not within the secondary | ||||||
8 | containment required by paragraph (1) of this subsection. | ||||||
9 | (d) All wells shall be constructed, and casing and | ||||||
10 | cementing activities shall be conducted, in a manner that shall | ||||||
11 | provide for control of the well at all times, prevent the | ||||||
12 | migration of oil, gas, and other fluids into the fresh water | ||||||
13 | and coal seams, and prevent pollution or diminution of fresh | ||||||
14 | water. In addition to any of the Department's casing and | ||||||
15 | cementing requirements, the following shall apply: | ||||||
16 | (1) All casings must conform to the current industry | ||||||
17 | standards published by the American Petroleum Institute. | ||||||
18 | (2) Casing thread compound and its use must conform to | ||||||
19 | the current industry standards published by the American | ||||||
20 | Petroleum Institute. | ||||||
21 | (3) Surface casing shall be centralized at the shoe, | ||||||
22 | above and below a stage collar or diverting tool, if run, | ||||||
23 | and through usable-quality water zones. In non-deviated | ||||||
24 | holes, pipe centralization as follows is required: a | ||||||
25 | centralizer shall be placed every fourth joint from the | ||||||
26 | cement shoe to the ground surface or to the bottom of the |
| |||||||
| |||||||
1 | cellar. All centralizers shall meet specifications in, or | ||||||
2 | equivalent to, API spec 10D, Specification for Bow-Spring | ||||||
3 | Casing Centralizers; API Spec 10 TR4, Technical Report on | ||||||
4 | Considerations Regarding Selection of Centralizers for | ||||||
5 | Primary Cementing Operations; and API RP 10D-2, | ||||||
6 | Recommended Practice for Centralizer Placement and Stop | ||||||
7 | Collar Testing. The Department may require additional | ||||||
8 | centralization as necessary to ensure the integrity of the | ||||||
9 | well design is adequate. All centralizers must conform to | ||||||
10 | the current industry standards published by the American | ||||||
11 | Petroleum Institute. | ||||||
12 | (4) Cement must conform to current industry standards | ||||||
13 | published by the American Petroleum Institute and the | ||||||
14 | cement slurry must be prepared to minimize its free water | ||||||
15 | content in accordance with the current industry standards | ||||||
16 | published by the American Petroleum Institute; the cement | ||||||
17 | must also: | ||||||
18 | (A) secure the casing in the wellbore; | ||||||
19 | (B) isolate and protect fresh groundwater; | ||||||
20 | (C) isolate abnormally pressured zones, lost | ||||||
21 | circulation zones, and any potential flow zones | ||||||
22 | including hydrocarbon and fluid-bearing zones; | ||||||
23 | (D) properly control formation pressure and any | ||||||
24 | pressure from drilling, completion and production; | ||||||
25 | (E) protect the casing from corrosion and | ||||||
26 | degradation; and |
| |||||||
| |||||||
1 | (F) prevent gas flow in the annulus. | ||||||
2 | (5) Prior to cementing any casing string, the borehole | ||||||
3 | must be circulated and conditioned to ensure an adequate | ||||||
4 | cement bond. | ||||||
5 | (6) A pre-flush or spacer must be pumped ahead of the | ||||||
6 | cement. | ||||||
7 | (7) The cement must be pumped at a rate and in a flow | ||||||
8 | regime that inhibits channeling of the cement in the | ||||||
9 | annulus. | ||||||
10 | (8) Cement compressive strength tests must be | ||||||
11 | performed on all surface, intermediate, and production | ||||||
12 | casing strings; after the cement is placed behind the | ||||||
13 | casing, the operator shall wait on cement to set until the | ||||||
14 | cement achieves a calculated compressive strength of at | ||||||
15 | least 500 pounds per square inch, and a minimum of 8 hours | ||||||
16 | before the casing is disturbed in any way, including | ||||||
17 | installation of a blowout preventer. The cement shall have | ||||||
18 | a 72-hour compressive strength of at least 1,200 psi, and | ||||||
19 | the free water separation shall be no more than 6 | ||||||
20 | milliliters per 250 milliliters of cement, tested in | ||||||
21 | accordance with current American petroleum Institute | ||||||
22 | standards. | ||||||
23 | (9) A copy of the cement job log for any cemented | ||||||
24 | casing string in the well shall be maintained in the well | ||||||
25 | file and available to the Department upon request. | ||||||
26 | (10) Surface casing shall be used and set to a depth of |
| |||||||
| |||||||
1 | at least 200 feet, or 100 feet below the base of the | ||||||
2 | deepest fresh water, whichever is deeper, but no more than | ||||||
3 | 200 feet below the base of the deepest fresh water and | ||||||
4 | prior to encountering any hydrocarbon-bearing zones. The | ||||||
5 | surface casing must be run and cemented as soon as | ||||||
6 | practicable after the hole has been adequately circulated | ||||||
7 | and conditioned. | ||||||
8 | (11) The Department must be notified at least 24 hours | ||||||
9 | prior to surface casing cementing operations. Surface | ||||||
10 | casing must be fully cemented to the surface with excess | ||||||
11 | cements. Cementing must be by the pump and plug method with | ||||||
12 | a minimum of 25% excess cement with appropriate lost | ||||||
13 | circulation material, unless another amount of excess | ||||||
14 | cement is approved by the Department. If cement returns are | ||||||
15 | not observed at the surface, the operator must perform | ||||||
16 | remedial actions as appropriate. | ||||||
17 | (12) Intermediate casing must be installed when | ||||||
18 | necessary to isolate fresh water not isolated by surface | ||||||
19 | casing and to seal off potential flow zones, anomalous | ||||||
20 | pressure zones, lost circulation zones and other drilling | ||||||
21 | hazards. | ||||||
22 | Intermediate casing must be set to protect fresh water | ||||||
23 | if surface casing was set above the base of the deepest | ||||||
24 | fresh water, if additional fresh water was found below the | ||||||
25 | surface casing shoe, or both. Intermediate casing used to | ||||||
26 | isolate fresh water must not be used as the production |
| |||||||
| |||||||
1 | string in the well in which it is installed, and may not be | ||||||
2 | perforated for purposes of conducting a hydraulic fracture | ||||||
3 | treatment through it. | ||||||
4 | When intermediate casing is installed to protect fresh | ||||||
5 | water, the operator shall set a full string of new | ||||||
6 | intermediate casing at least 100 feet below the base of the | ||||||
7 | deepest fresh water and bring cement to the surface. In | ||||||
8 | instances where intermediate casing was set solely to | ||||||
9 | protect fresh water encountered below the surface casing | ||||||
10 | shoe, and cementing to the surface is technically | ||||||
11 | infeasible, would result in lost circulation, or both, | ||||||
12 | cement must be brought to a minimum of 600 feet above the | ||||||
13 | shallowest fresh water zone encountered below the surface | ||||||
14 | casing shoe or to the surface if the fresh water zone is | ||||||
15 | less than 600 feet from the surface. The location and | ||||||
16 | depths of any hydrocarbon-bearing zones or fresh water | ||||||
17 | zones that are open to the wellbore above the casing shoe | ||||||
18 | must be confirmed by coring, electric logs, or testing and | ||||||
19 | must be reported to the Department. | ||||||
20 | In the case that intermediate casing was set for a | ||||||
21 | reason other than to protect strata that contains fresh | ||||||
22 | water, the intermediate casing string shall be cemented | ||||||
23 | from the shoe to a point at least 600 true vertical feet | ||||||
24 | above the shoe. If there is a hydrocarbon bearing zone | ||||||
25 | capable of producing exposed above the intermediate casing | ||||||
26 | shoe, the casing shall be cemented from the shoe to a point |
| |||||||
| |||||||
1 | at least 600 true vertical feet above the shallowest | ||||||
2 | hydrocarbon bearing zone or to a point at least 200 feet | ||||||
3 | above the shoe of the next shallower casing string that was | ||||||
4 | set and cemented in the well (or to the surface if less | ||||||
5 | than 200 feet). | ||||||
6 | (13) The Department must be notified prior to | ||||||
7 | intermediate casing cementing operations. Cementing must | ||||||
8 | be by the pump and plug method with a minimum of 25% excess | ||||||
9 | cement. A radial cement bond evaluation log, or other | ||||||
10 | evaluation approved by the Department, must be run to | ||||||
11 | verify the cement bond on the intermediate casing. Remedial | ||||||
12 | cementing is required if the cement bond is not adequate | ||||||
13 | for drilling ahead. | ||||||
14 | (14) Production casing must be run and fully cemented | ||||||
15 | to 500 feet above the top perforated zone, if possible. The | ||||||
16 | Department must be notified at least 24 hours prior to | ||||||
17 | production casing cementing operations. Cementing must be | ||||||
18 | by the pump and plug method with a minimum of 25% excess | ||||||
19 | cement. | ||||||
20 | (15) At any time, the Department, as it deems | ||||||
21 | necessary, may require installation of an additional | ||||||
22 | cemented casing string or strings in the well. | ||||||
23 | (16) After the setting and cementing of a casing | ||||||
24 | string, except the conductor casing, and prior to further | ||||||
25 | drilling, the casing string shall be tested with fresh | ||||||
26 | water, mud, or brine to no less than 0.22 psi per foot of |
| |||||||
| |||||||
1 | casing string length or 1,500 psi, whichever is greater but | ||||||
2 | not to exceed 70% of the minimum internal yield, for at | ||||||
3 | least 30 minutes with less than a 5% pressure loss, except | ||||||
4 | that any casing string that will have pressure exerted on | ||||||
5 | it during stimulation of the well shall be tested to at | ||||||
6 | least the maximum anticipated treatment pressure. If the | ||||||
7 | pressure declines more than 5% or if there are other | ||||||
8 | indications of a leak, corrective action shall be taken | ||||||
9 | before conducting further drilling and high volume | ||||||
10 | horizontal hydraulic fracturing operations. The operator | ||||||
11 | shall contact the Department's District Office for any | ||||||
12 | county in which the well is located at least 24 hours prior | ||||||
13 | to conducting a pressure test to enable an inspector to be | ||||||
14 | present when the test is done. A record of the pressure | ||||||
15 | test must be maintained by the operator and must be | ||||||
16 | submitted to the Department on a form prescribed by the | ||||||
17 | Department prior to conducting high volume horizontal | ||||||
18 | hydraulic fracturing operations. The actual pressure must | ||||||
19 | not exceed the test pressure at any time during high volume | ||||||
20 | horizontal hydraulic fracturing operations. | ||||||
21 | (17) Any hydraulic fracturing string used in the high | ||||||
22 | volume horizontal hydraulic fracturing operations must be | ||||||
23 | either strung into a production liner or run with a packer | ||||||
24 | set at least 100 feet below the deepest cement top and must | ||||||
25 | be tested to not less than the maximum anticipated treating | ||||||
26 | pressure minus the annulus pressure applied between the |
| |||||||
| |||||||
1 | fracturing string and the production or immediate casing. | ||||||
2 | The pressure test shall be considered successful if the | ||||||
3 | pressure applied has been held for 30 minutes with no more | ||||||
4 | than 5% pressure loss. A function-tested relief valve and | ||||||
5 | diversion line must be installed and used to divert flow | ||||||
6 | from the hydraulic fracturing string-casing annulus to a | ||||||
7 | covered watertight steel tank in case of hydraulic | ||||||
8 | fracturing string failure. The relief valve must be set to | ||||||
9 | limit the annular pressure to no more than 95% of the | ||||||
10 | working pressure rating of the casings forming the annulus. | ||||||
11 | The annulus between the hydraulic fracturing string and | ||||||
12 | casing must be pressurized to at least 250 psi and | ||||||
13 | monitored. | ||||||
14 | (18) After a successful pressure test under paragraph | ||||||
15 | (16) of this subsection, a formation pressure integrity | ||||||
16 | test must be conducted below the surface casing and below | ||||||
17 | all intermediate casing. The operator shall notify the | ||||||
18 | Department's District Office for any county in which the | ||||||
19 | well is located at least 24 hours prior to conducting a | ||||||
20 | formation pressure integrity test to enable an inspector to | ||||||
21 | be present when the test is done. A record of the pressure | ||||||
22 | test must be maintained by the operator and must be | ||||||
23 | submitted to the Department on a form prescribed by the | ||||||
24 | Department prior to conducting high volume horizontal | ||||||
25 | hydraulic fracturing operations. The actual hydraulic | ||||||
26 | fracturing treatment pressure must not exceed the test |
| |||||||
| |||||||
1 | pressure at any time during high volume horizontal | ||||||
2 | hydraulic fracturing operations.
| ||||||
3 | (e) Blowout prevention standards shall be set as follows: | ||||||
4 | (1) The operator shall use blowout prevention | ||||||
5 | equipment after setting casing with a competent casing | ||||||
6 | seat. Blowout prevention equipment shall be in good | ||||||
7 | working condition at all times. | ||||||
8 | (2) The operator shall use pipe fittings, valves, | ||||||
9 | and unions placed on or connected to the blow-out | ||||||
10 | prevention systems that have a working pressure | ||||||
11 | capability that exceeds the anticipated pressures. | ||||||
12 | (3) During all drilling and completion operations | ||||||
13 | when a blowout preventer is installed, tested, or in | ||||||
14 | use, the operator or operator's designated | ||||||
15 | representative shall be present at the well site and | ||||||
16 | that person or personnel shall have a current well | ||||||
17 | control certification from an accredited training | ||||||
18 | program that is acceptable to the Department. The | ||||||
19 | certification shall be available at the well site and | ||||||
20 | provided to the Department upon request. | ||||||
21 | (4) Appropriate pressure control procedures and | ||||||
22 | equipment in proper working order must be properly | ||||||
23 | installed and employed while conducting drilling and | ||||||
24 | completion operations including tripping, logging, | ||||||
25 | running casing into the well, and drilling out | ||||||
26 | solid-core stage plugs. |
| |||||||
| |||||||
1 | (5) Pressure testing of the blowout preventer and | ||||||
2 | related equipment for any drilling or completion | ||||||
3 | operation must be performed. Testing must be conducted | ||||||
4 | in accordance with current industry standards | ||||||
5 | published by the American Petroleum Institute. Testing | ||||||
6 | of the blowout preventer shall include testing after | ||||||
7 | the blowout preventer is installed on the well but | ||||||
8 | prior to drilling below the last cemented casing seat. | ||||||
9 | Pressure control equipment, including the blowout | ||||||
10 | preventer, that fails any pressure test shall not be | ||||||
11 | used until it is repaired and passes the pressure test. | ||||||
12 | (6) A remote blowout preventer actuator, that is | ||||||
13 | powered by a source other than rig hydraulics, shall be | ||||||
14 | located at least 50 feet from the wellhead and have an | ||||||
15 | appropriate rated working pressure. | ||||||
16 | Section 1-75. High volume horizontal hydraulic fracturing | ||||||
17 | operations. | ||||||
18 | (a) General. | ||||||
19 | (1) During all phases of high volume horizontal | ||||||
20 | hydraulic fracturing operations, the permittee shall | ||||||
21 | comply with all terms of the permit. | ||||||
22 | (2) All phases of high volume horizontal hydraulic | ||||||
23 | fracturing operations shall be conducted in a manner that | ||||||
24 | shall not pose a significant risk to public health, life, | ||||||
25 | property, aquatic life, or wildlife. |
| |||||||
| |||||||
1 | (3) The permittee shall notify the Department by phone, | ||||||
2 | electronic communication, or letter, at least 48 hours | ||||||
3 | prior to the commencement of high volume horizontal | ||||||
4 | hydraulic fracturing operations. | ||||||
5 | (b) Integrity tests and monitoring. | ||||||
6 | (1) Before the commencement of high volume horizontal | ||||||
7 | hydraulic fracturing operations, all mechanical integrity | ||||||
8 | tests required under subsection (d) of Section 1-70 and | ||||||
9 | this subsection must be successfully completed. | ||||||
10 | (2) Prior to commencing high volume horizontal | ||||||
11 | hydraulic fracturing operations and pumping of hydraulic | ||||||
12 | fracturing fluid, the injection lines and manifold, | ||||||
13 | associated valves, fracture head or tree and any other | ||||||
14 | wellhead component or connection not previously tested | ||||||
15 | must be tested with fresh water, mud, or brine to at least | ||||||
16 | the maximum anticipated treatment pressure for at least 30 | ||||||
17 | minutes with less than a 5% pressure loss. A record of the | ||||||
18 | pressure test must be maintained by the operator and made | ||||||
19 | available to the Department upon request. The actual high | ||||||
20 | volume horizontal hydraulic fracturing treatment pressure | ||||||
21 | must not exceed the test pressure at any time during high | ||||||
22 | volume horizontal hydraulic fracturing operations. | ||||||
23 | (3) The pressure exerted on treating equipment | ||||||
24 | including valves, lines, manifolds, hydraulic fracturing | ||||||
25 | head or tree, casing and hydraulic fracturing string, if | ||||||
26 | used, must not exceed 95% of the working pressure rating of |
| |||||||
| |||||||
1 | the weakest component. The high volume horizontal | ||||||
2 | hydraulic fracturing treatment pressure must not exceed | ||||||
3 | the test pressure of any given component at any time during | ||||||
4 | high volume horizontal hydraulic fracturing operations. | ||||||
5 | (4) During high volume horizontal hydraulic fracturing | ||||||
6 | operations, all annulus pressures, the injection pressure, | ||||||
7 | and the rate of injection shall be continuously monitored | ||||||
8 | and recorded. The records of the monitoring shall be | ||||||
9 | maintained by the operator and shall be provided to the | ||||||
10 | Department upon request at any time during the period up to | ||||||
11 | and including 5 years after the well is permanently plugged | ||||||
12 | or abandoned. | ||||||
13 | (5) High volume horizontal hydraulic fracturing | ||||||
14 | operations must be immediately suspended if any anomalous | ||||||
15 | pressure or flow condition or any other anticipated | ||||||
16 | pressure or flow condition is occurring in a way that | ||||||
17 | indicates the mechanical integrity of the well has been | ||||||
18 | compromised and continued operations pose a risk to the | ||||||
19 | environment. Remedial action shall be undertaken | ||||||
20 | immediately prior to recommencing high volume horizontal | ||||||
21 | hydraulic fracturing operations. The permittee shall | ||||||
22 | notify the Department within 1 hour of suspending | ||||||
23 | operations for any matters relating to the mechanical | ||||||
24 | integrity of the well or risk to the environment. | ||||||
25 | (c) Fluid and waste management. | ||||||
26 | (1) For the purposes of storage at the well site and |
| |||||||
| |||||||
1 | except as provided in paragraph (2) of this subsection, | ||||||
2 | hydraulic fracturing additives, hydraulic fracturing | ||||||
3 | fluid, hydraulic fracturing flowback, and produced water | ||||||
4 | shall be stored in above-ground tanks during all phases of | ||||||
5 | drilling, high volume horizontal hydraulic fracturing, and | ||||||
6 | production operations until removed for proper disposal. | ||||||
7 | For the purposes of centralized storage off site for | ||||||
8 | potential reuse prior to disposal, hydraulic fracturing | ||||||
9 | additives, hydraulic fracturing fluid, hydraulic | ||||||
10 | fracturing flowback, and produced water shall be stored in | ||||||
11 | above-ground tanks. | ||||||
12 | (2) In accordance with the plan required by paragraph | ||||||
13 | (11) of subsection (b) of Section 1-35 of this Act and as | ||||||
14 | approved by the Department, the use of a reserve pit is | ||||||
15 | allowed for the temporary storage of hydraulic fracturing | ||||||
16 | flowback. The reserve pit shall be used only in the event | ||||||
17 | of a lack of capacity for tank storage due to higher than | ||||||
18 | expected volume or rate of hydraulic fracturing flowback, | ||||||
19 | or other unanticipated flowback occurrence. Any reserve | ||||||
20 | pit must comply with the following construction standards | ||||||
21 | and liner specifications: | ||||||
22 | (A) the synthetic liner material shall have a | ||||||
23 | minimum thickness of 24 mils with high puncture and | ||||||
24 | tear strength and be impervious and resistant to | ||||||
25 | deterioration; | ||||||
26 | (B) the pit lining system shall be designed to have |
| |||||||
| |||||||
1 | a capacity at least equivalent to 110% of the maximum | ||||||
2 | volume of hydraulic fracturing flowback anticipated to | ||||||
3 | be recovered; | ||||||
4 | (C) the lined pit shall be constructed, installed, | ||||||
5 | and maintained in accordance with the manufacturers' | ||||||
6 | specifications and good engineering practices to | ||||||
7 | prevent overflow during any use; | ||||||
8 | (D) the liner shall have sufficient elongation to | ||||||
9 | cover the bottom and interior sides of the pit with the | ||||||
10 | edges secured with at least a 12 inch deep anchor | ||||||
11 | trench around the pit perimeter to prevent any slippage | ||||||
12 | or destruction of the liner materials; and | ||||||
13 | (E) the foundation for the liner shall be free of | ||||||
14 | rock and constructed with soil having a minimum | ||||||
15 | thickness of 12 inches after compaction covering the | ||||||
16 | entire bottom and interior sides of the pit. | ||||||
17 | (3) Fresh water may be stored in tanks or pits at the | ||||||
18 | election of the operator. | ||||||
19 | (4) Tanks required under this subsection must be | ||||||
20 | above-ground tanks that are closed, watertight, and will | ||||||
21 | resist corrosion. The permittee shall routinely inspect | ||||||
22 | the tanks for corrosion. | ||||||
23 | (5) Hydraulic fracturing fluids and hydraulic | ||||||
24 | fracturing flowback must be removed from the well site | ||||||
25 | within 60 days after completion of high volume horizontal | ||||||
26 | fracturing operations, except that any excess hydraulic |
| |||||||
| |||||||
1 | fracturing flowback captured for temporary storage in a | ||||||
2 | reserve pit as provided in paragraph (2) of this subsection | ||||||
3 | must be removed from the well site within 7 days. | ||||||
4 | (6) Tanks, piping, and conveyances, including valves, | ||||||
5 | must be constructed of suitable materials, be of sufficient | ||||||
6 | pressure rating, be able to resist corrosion, and be | ||||||
7 | maintained in a leak-free condition. Fluid transfer | ||||||
8 | operations from tanks to tanker trucks must be supervised | ||||||
9 | at the truck and at the tank if the tank is not visible to | ||||||
10 | the truck operator from the truck. During transfer | ||||||
11 | operations, all interconnecting piping must be supervised | ||||||
12 | if not visible to transfer personnel at the truck and tank. | ||||||
13 | (7) Hydraulic fracturing flowback must be tested for | ||||||
14 | volatile organic chemicals, semi-volatile organic | ||||||
15 | chemicals, inorganic chemicals, heavy metals, and | ||||||
16 | naturally occurring radioactive material prior to removal | ||||||
17 | from the site. Testing shall occur once per well site and | ||||||
18 | the analytical results shall be filed with the Department | ||||||
19 | and the Agency, and provided to the liquid oilfield waste | ||||||
20 | transportation and disposal operators. Prior to plugging | ||||||
21 | and site restoration, the ground adjacent to the storage | ||||||
22 | tanks and any hydraulic fracturing flowback reserve pit | ||||||
23 | must be measured for radioactivity. | ||||||
24 | (8) Hydraulic fracturing flowback may only be disposed | ||||||
25 | of by injection into a Class II injection well that is | ||||||
26 | below interface between fresh water and naturally |
| |||||||
| |||||||
1 | occurring Class IV groundwater. Produced water may be | ||||||
2 | disposed of by injection in a permitted enhanced oil | ||||||
3 | recovery operation. Hydraulic fracturing flowback and | ||||||
4 | produced water may be treated and recycled for use in | ||||||
5 | hydraulic fracturing fluid for high volume horizontal | ||||||
6 | hydraulic fracturing operations. | ||||||
7 | (9) Discharge of hydraulic fracturing fluids, | ||||||
8 | hydraulic fracturing flowback, and produced water into any | ||||||
9 | surface water or water drainage way is prohibited. | ||||||
10 | (10) Transport of all hydraulic fracturing fluids, | ||||||
11 | hydraulic fracturing flowback, and produced water by | ||||||
12 | vehicle for disposal must be undertaken by a liquid | ||||||
13 | oilfield waste hauler permitted by the Department under | ||||||
14 | Section 8c of the Illinois Oil and Gas Act. The liquid | ||||||
15 | oilfield waste hauler transporting hydraulic fracturing | ||||||
16 | fluids, hydraulic fracturing flowback, or produced water | ||||||
17 | under this Act shall comply with all laws, rules, and | ||||||
18 | regulations concerning liquid oilfield waste. | ||||||
19 | (11) Drill cuttings, drilling fluids, and drilling | ||||||
20 | wastes not containing oil-based mud or polymer-based mud | ||||||
21 | may be stored in tanks or pits. Pits used to store | ||||||
22 | cuttings, fluids, and drilling wastes from wells not using | ||||||
23 | fresh water mud shall be subject to the construction | ||||||
24 | standards identified in (2) of this Section. Drill cuttings | ||||||
25 | not contaminated with oil-based mud or polymer-based mud | ||||||
26 | may be disposed of onsite subject to the approval of the |
| |||||||
| |||||||
1 | Department. Drill cuttings contaminated with oil-based mud | ||||||
2 | or polymer-based mud shall not be disposed of on site. | ||||||
3 | Annular disposal of drill cuttings or fluid is prohibited. | ||||||
4 | (12) Any release of hydraulic fracturing fluid, | ||||||
5 | hydraulic fracturing additive, or hydraulic fracturing | ||||||
6 | flowback, used or generated during or after high volume | ||||||
7 | horizontal hydraulic fracturing operations shall be | ||||||
8 | immediately cleaned up and remediated pursuant to | ||||||
9 | Department requirements. Any release of hydraulic | ||||||
10 | fracturing fluid or hydraulic fracturing flowback in | ||||||
11 | excess of 1 barrel, shall be reported to the Department. | ||||||
12 | Any release of a hydraulic fracturing additive shall be | ||||||
13 | reported to the Department in accordance with the | ||||||
14 | appropriate reportable quantity thresholds established | ||||||
15 | under the federal Emergency Planning and Community | ||||||
16 | Right-to-Know Act as published in the Code of Federal | ||||||
17 | Regulations (CFR), 40 CFR Parts 355, 370, and 372, the | ||||||
18 | federal Comprehensive Environmental Response, | ||||||
19 | Compensation, and Liability Act as published in 40 CFR Part | ||||||
20 | 302, and subsection (r) of Section 112 of the Federal Clean | ||||||
21 | Air Act as published in 40 CFR Part 68. Any release of | ||||||
22 | produced water in excess of 5 barrels shall be cleaned up, | ||||||
23 | remediated, and reported pursuant to Department | ||||||
24 | requirements. | ||||||
25 | (13) Secondary containment for tanks required under | ||||||
26 | this subsection and additive staging areas is required. |
| |||||||
| |||||||
1 | Secondary containment measures may include, as deemed | ||||||
2 | appropriate by the Department, one or a combination of the | ||||||
3 | following: dikes, liners, pads, impoundments, curbs, | ||||||
4 | sumps, or other structures or equipment capable of | ||||||
5 | containing the substance. Any secondary containment must | ||||||
6 | be sufficient to contain 110% of the total capacity of the | ||||||
7 | single largest container or tank within a common | ||||||
8 | containment area. No more than one hour before initiating | ||||||
9 | any stage of the high volume horizontal hydraulic | ||||||
10 | fracturing operations, all secondary containment must be | ||||||
11 | visually inspected to ensure all structures and equipment | ||||||
12 | are in place and in proper working order. The results of | ||||||
13 | this inspection must be recorded and documented by the | ||||||
14 | operator, and available to the Department upon request. | ||||||
15 | (14) A report on the transportation and disposal of the | ||||||
16 | hydraulic fracturing fluids and hydraulic fracturing | ||||||
17 | flowback shall be prepared and included in the well file. | ||||||
18 | The report must include the amount of fluids transported, | ||||||
19 | identification of the company that transported the fluids, | ||||||
20 | the destination of the fluids, and the method of disposal. | ||||||
21 | (15) Operators operating wells permitted under this | ||||||
22 | Act must submit an annual report to the Department | ||||||
23 | detailing the management of any produced water associated | ||||||
24 | with the permitted well. The report shall be due to the | ||||||
25 | Department no later than April 30th of each year and shall | ||||||
26 | provide information on the operator's management of any |
| |||||||
| |||||||
1 | produced water for the prior calendar year. The report | ||||||
2 | shall contain information relative to the amount of | ||||||
3 | produced water the well permitted under this Act produced, | ||||||
4 | the method by which the produced water was disposed, and | ||||||
5 | the destination where the produced water was disposed in | ||||||
6 | addition to any other information the Department | ||||||
7 | determines is necessary by rule. | ||||||
8 | (d) Hydraulic fracturing fluid shall be confined to the | ||||||
9 | targeted formation designated in the permit. If the hydraulic | ||||||
10 | fracturing fluid or hydraulic fracturing flowback are | ||||||
11 | migrating into the freshwater zone or to the surface from the | ||||||
12 | well in question or from other wells, the permittee shall | ||||||
13 | immediately notify the Department and shut in the well until | ||||||
14 | remedial action that prevents the fluid migration is completed. | ||||||
15 | The permittee shall obtain the approval of the Department prior | ||||||
16 | to resuming operations. | ||||||
17 | (e) Emissions controls. | ||||||
18 | (1) This subsection applies to all horizontal wells | ||||||
19 | that are completed with high volume horizontal hydraulic | ||||||
20 | fracturing. | ||||||
21 | (2) Except as otherwise provided in paragraph (8) of | ||||||
22 | this subsection (e), permittees shall be responsible for | ||||||
23 | managing gas and hydrocarbon fluids produced during the | ||||||
24 | flowback period by routing recovered hydrocarbon fluids to | ||||||
25 | one or more storage vessels or re-injecting into the well | ||||||
26 | or another well, and routing recovered natural gas into a |
| |||||||
| |||||||
1 | flow line or collection system, re-injecting the gas into | ||||||
2 | the well or another well, using the gas as an on-site fuel | ||||||
3 | source, or using the gas for another useful purpose that a | ||||||
4 | purchased fuel or raw material would serve, with no direct | ||||||
5 | release to the atmosphere. | ||||||
6 | (3) If it is technically infeasible or economically | ||||||
7 | unreasonable to minimize emissions associated with the | ||||||
8 | venting of hydrocarbon fluids and natural gas during the | ||||||
9 | flowback period using the methods specified in paragraph | ||||||
10 | (2) of this subsection (e), the permittee shall capture and | ||||||
11 | direct the emissions to a completion combustion device, | ||||||
12 | except in conditions that may result in a fire hazard or | ||||||
13 | explosion, or where high heat emissions from a completion | ||||||
14 | combustion device may negatively impact waterways. | ||||||
15 | Completion combustion devices must be equipped with a | ||||||
16 | reliable continuous ignition source over the duration of | ||||||
17 | the flowback period. | ||||||
18 | (4) Except as otherwise provided in paragraph (8) of | ||||||
19 | this subsection (e), permittees shall be responsible for | ||||||
20 | minimizing the emissions associated with venting of | ||||||
21 | hydrocarbon fluids and natural gas during the production | ||||||
22 | phase by: | ||||||
23 | (A) routing the recovered fluids into storage | ||||||
24 | vessels and (i) routing the recovered gas into a gas | ||||||
25 | gathering line, collection system, or to a generator | ||||||
26 | for onsite energy generation, providing that gas to the |
| |||||||
| |||||||
1 | surface owner of the well site for use for heat or | ||||||
2 | energy generation, or (ii) using another method other | ||||||
3 | than venting or flaring; and | ||||||
4 | (B) employing sand traps, surge vessels, | ||||||
5 | separators, and tanks as soon as practicable during | ||||||
6 | cleanout operations to safely maximize resource | ||||||
7 | recovery and minimize releases to the environment. | ||||||
8 | (5) If the permittee establishes that it is technically | ||||||
9 | infeasible or economically unreasonable to minimize | ||||||
10 | emissions associated with the venting of hydrocarbon | ||||||
11 | fluids and natural gas during production using the methods | ||||||
12 | specified in paragraph (4) of this subsection (e), the | ||||||
13 | Department shall require the permittee to capture and | ||||||
14 | direct any natural gas produced during the production phase | ||||||
15 | to a flare. Any flare used pursuant to this paragraph shall | ||||||
16 | be equipped with a reliable continuous ignition source over | ||||||
17 | the duration of production. In order to establish technical | ||||||
18 | infeasibility or economic unreasonableness under this | ||||||
19 | paragraph (5), the permittee must demonstrate, for each | ||||||
20 | well site on an annual basis, that taking the actions | ||||||
21 | listed in paragraph (4) of this subsection (e) are not cost | ||||||
22 | effective based on a site-specific analysis. Permittees | ||||||
23 | that use a flare during the production phase for operations | ||||||
24 | other than emergency conditions shall file an updated | ||||||
25 | site-specific analysis annually with the Department. The | ||||||
26 | analysis shall be due one year from the date of the |
| |||||||
| |||||||
1 | previous submission and shall detail whether any changes | ||||||
2 | have occurred that alter the technical infeasibility or | ||||||
3 | economic unreasonableness of the permittee to reduce their | ||||||
4 | emissions in accordance with paragraph (4) of this | ||||||
5 | subsection (e). | ||||||
6 | (6) Uncontrolled emissions exceeding 6 tons per year | ||||||
7 | from storage tanks shall be recovered and routed to a flare | ||||||
8 | that is designed in accordance with 40 CFR 60.18 and is | ||||||
9 | certified by the manufacturer of the device. The permittee | ||||||
10 | shall maintain and operate the flare in accordance with | ||||||
11 | manufacturer specifications. Any flare used under this | ||||||
12 | paragraph must be equipped with a reliable continuous | ||||||
13 | ignition source over the duration of production. | ||||||
14 | (7) The Department may approve an exemption that waives | ||||||
15 | the flaring requirements of paragraphs (5) and (6) of this | ||||||
16 | subsection (e) only if the permittee demonstrates that the | ||||||
17 | use of the flare will pose a significant risk of injury or | ||||||
18 | property damage and that alternative methods of collection | ||||||
19 | will not threaten harm to the environment. In determining | ||||||
20 | whether to approve a waiver, the Department shall consider | ||||||
21 | the quantity of casinghead gas produced, the topographical | ||||||
22 | and climatological features at the well site, and the | ||||||
23 | proximity of agricultural structures, crops, inhabited | ||||||
24 | structures, public buildings, and public roads and | ||||||
25 | railways. | ||||||
26 | (8) For each wildcat well, delineation well, or low |
| |||||||
| |||||||
1 | pressure well, permittees shall be responsible for | ||||||
2 | minimizing the emissions associated with venting of | ||||||
3 | hydrocarbon fluids and natural gas during the flowback | ||||||
4 | period and production phase by capturing and directing the | ||||||
5 | emissions to a completion combustion device during the | ||||||
6 | flowback period and to a flare during the production phase, | ||||||
7 | except in conditions that may result in a fire hazard or | ||||||
8 | explosion, or where high heat emissions from a completion | ||||||
9 | combustion device or flare may negatively impact | ||||||
10 | waterways. Completion combustion devices and flares shall | ||||||
11 | be equipped with a reliable continuous ignition source over | ||||||
12 | the duration of the flowback period and the production | ||||||
13 | phase, as applicable. | ||||||
14 | (9) On or after July 1, 2015, all flares used under | ||||||
15 | paragraphs (5) and (8) of this subsection (e) shall (i) | ||||||
16 | operate with a combustion efficiency of at least 98% and in | ||||||
17 | accordance with 40 CFR 60.18; and (ii) be certified by the | ||||||
18 | manufacturer of the device. The permittee shall maintain | ||||||
19 | and operate the flare in accordance with manufacturer | ||||||
20 | specifications.
| ||||||
21 | (10) Permittees shall employ practices for control of
| ||||||
22 | fugitive dust related to their operations. These practices | ||||||
23 | shall include, but are not limited to, the use of speed | ||||||
24 | restrictions, regular road maintenance, and restriction of | ||||||
25 | construction activity during high-wind days. Additional | ||||||
26 | management practices such as road surfacing, wind breaks |
| |||||||
| |||||||
1 | and barriers, or automation of wells to reduce truck | ||||||
2 | traffic may also be required by the Department if | ||||||
3 | technologically feasible and economically reasonable to | ||||||
4 | minimize fugitive dust emissions. | ||||||
5 | (11) Permittees shall record and report to the | ||||||
6 | Department on an annual basis the amount of gas flared or | ||||||
7 | vented from each high volume horizontal hydraulic | ||||||
8 | fracturing well. Three years after the effective date of | ||||||
9 | the first high-volume horizontal hydraulic fracturing well | ||||||
10 | permit issued by the Department, and every 3 years | ||||||
11 | thereafter, the Department shall prepare a report that | ||||||
12 | analyzes the amount of gas that has been flared or vented | ||||||
13 | and make recommendations to the General Assembly on whether | ||||||
14 | steps should be taken to reduce the amount of gas that is | ||||||
15 | being flared or vented in this State. | ||||||
16 | (f) High volume horizontal hydraulic fracturing operations | ||||||
17 | completion report. Within 60 calendar days after the conclusion | ||||||
18 | of high volume horizontal hydraulic fracturing operations, the | ||||||
19 | operator shall file a high volume horizontal hydraulic | ||||||
20 | fracturing operations completion report with the Department. A | ||||||
21 | copy of each completion report submitted to the Department | ||||||
22 | shall be provided by the Department to the Illinois State | ||||||
23 | Geological Survey. The completion reports required by this | ||||||
24 | Section shall be considered public information and shall be | ||||||
25 | made available on the Department's website. The high volume | ||||||
26 | horizontal hydraulic fracturing operations completion report |
| |||||||
| |||||||
1 | shall contain the following information: | ||||||
2 | (1) the permittee name as listed in the permit | ||||||
3 | application; | ||||||
4 | (2) the dates of the high volume horizontal hydraulic | ||||||
5 | fracturing operations; | ||||||
6 | (3) the county where the well is located; | ||||||
7 | (4) the well name and Department reference number; | ||||||
8 | (5) the total water volume used in the high volume | ||||||
9 | horizontal hydraulic fracturing operations of the well, | ||||||
10 | and the type and total volume of the base fluid used if | ||||||
11 | something other than water; | ||||||
12 | (6) each source from which the water used in the high | ||||||
13 | volume horizontal hydraulic fracturing operations was | ||||||
14 | drawn, and the specific location of each source, including, | ||||||
15 | but not limited to, the name of the county and latitude and | ||||||
16 | longitude coordinates; | ||||||
17 | (7) the quantity of hydraulic fracturing flowback | ||||||
18 | recovered from the well; | ||||||
19 | (8) a description of how hydraulic fracturing flowback | ||||||
20 | recovered from the well was disposed and, if applicable, | ||||||
21 | reused; | ||||||
22 | (9) a chemical disclosure report identifying each | ||||||
23 | chemical and proppant used in hydraulic fracturing fluid | ||||||
24 | for each stage of the hydraulic fracturing operations | ||||||
25 | including the following: | ||||||
26 | (A) the total volume of water used in the hydraulic |
| |||||||
| |||||||
1 | fracturing treatment of the well or the type and total | ||||||
2 | volume of the base fluid used in the hydraulic | ||||||
3 | fracturing treatment, if something other than water; | ||||||
4 | (B) each hydraulic fracturing additive used in the | ||||||
5 | hydraulic fracturing fluid, including the trade name, | ||||||
6 | vendor, a brief descriptor of the intended use or | ||||||
7 | function of each hydraulic fracturing additive, and | ||||||
8 | the Material Safety Data Sheet (MSDS), if applicable; | ||||||
9 | (C) each chemical intentionally added to the base | ||||||
10 | fluid, including for each chemical, the Chemical | ||||||
11 | Abstracts Service number, if applicable; and | ||||||
12 | (D) the actual concentration in the base fluid, in | ||||||
13 | percent by mass, of each chemical intentionally added | ||||||
14 | to the base fluid;
| ||||||
15 | (10) all pressures recorded during the high volume | ||||||
16 | horizontal hydraulic fracturing operations; and | ||||||
17 | (11) any other reasonable or pertinent information | ||||||
18 | related to the conduct of the high volume horizontal | ||||||
19 | hydraulic fracturing operations the Department may request | ||||||
20 | or require by administrative rule. | ||||||
21 | Section 1-77. Chemical disclosure; trade secret | ||||||
22 | protection. | ||||||
23 | (a) If the chemical disclosure information required by | ||||||
24 | paragraph (8) of subsection (b) of Section 1-35 of this Act is | ||||||
25 | not submitted at the time of permit application, then the |
| |||||||
| |||||||
1 | permittee, applicant, or person who will perform high volume | ||||||
2 | horizontal hydraulic fracturing operations at the well shall | ||||||
3 | submit this information to the Department in electronic format | ||||||
4 | no less than 21 calendar days prior to performing the high | ||||||
5 | volume horizontal hydraulic fracturing operations. The | ||||||
6 | permittee shall not cause or allow any stimulation of the well | ||||||
7 | if it is not in compliance with this Section. Nothing in this | ||||||
8 | Section shall prohibit the person performing high volume | ||||||
9 | horizontal hydraulic fracturing operations from adjusting or | ||||||
10 | altering the contents of the fluid during the treatment process | ||||||
11 | to respond to unexpected conditions, as long as the permittee | ||||||
12 | or the person performing the high volume horizontal hydraulic | ||||||
13 | fracturing operations notifies the Department by electronic | ||||||
14 | mail within 24 hours of the departure from the initial | ||||||
15 | treatment design and includes a brief explanation of the reason | ||||||
16 | for the departure.
| ||||||
17 | (b) No permittee shall use the services of another person | ||||||
18 | to perform high volume horizontal hydraulic fracturing | ||||||
19 | operations unless the person is in compliance with this | ||||||
20 | Section.
| ||||||
21 | (c) Any person performing high volume horizontal hydraulic | ||||||
22 | fracturing operations within this State shall:
| ||||||
23 | (1) be authorized to do business in this State; and | ||||||
24 | (2) maintain and disclose to the Department separate | ||||||
25 | and up-to-date master lists of: | ||||||
26 | (A) the base fluid to be used during any high |
| |||||||
| |||||||
1 | volume horizontal hydraulic fracturing operations | ||||||
2 | within this State;
| ||||||
3 | (B) all hydraulic fracturing additives to be used | ||||||
4 | during any high volume horizontal hydraulic fracturing | ||||||
5 | operations within this State; and
| ||||||
6 | (C) all chemicals and associated Chemical Abstract | ||||||
7 | Service numbers to be used in any high volume | ||||||
8 | horizontal hydraulic fracturing operations within this | ||||||
9 | State.
| ||||||
10 | (d) Persons performing high volume horizontal hydraulic | ||||||
11 | fracturing operations are prohibited from using any base fluid, | ||||||
12 | hydraulic fracturing additive, or chemical not listed on their | ||||||
13 | master lists disclosed under paragraph (2) of subsection (c) of | ||||||
14 | this Section.
| ||||||
15 | (e) The Department shall assemble and post up-to-date | ||||||
16 | copies of the master lists it receives under paragraph (2) of | ||||||
17 | subsection (c) of this Section on its website in accordance | ||||||
18 | with Section 1-110 of this Act.
| ||||||
19 | (f) Where an applicant, permittee, or the person performing | ||||||
20 | high volume horizontal hydraulic fracturing operations | ||||||
21 | furnishes chemical disclosure information to the Department | ||||||
22 | under this Section, Section 1-35, or Section 1-75 of this Act | ||||||
23 | under a claim of trade secret, the applicant, permittee, or | ||||||
24 | person performing high volume horizontal hydraulic fracturing | ||||||
25 | operations shall submit redacted and un-redacted copies of the | ||||||
26 | documents containing the information to the Department and the |
| |||||||
| |||||||
1 | Department shall use the redacted copies when posting materials | ||||||
2 | on its website.
| ||||||
3 | (g) Upon submission or within 5 calendar days of submission | ||||||
4 | of chemical disclosure information to the Department under this | ||||||
5 | Section, Section 1-35, or Section 1-75 of this Act under a | ||||||
6 | claim of trade secret, the person that claimed trade secret | ||||||
7 | protection shall provide a justification of the claim | ||||||
8 | containing the following: a detailed description of the | ||||||
9 | procedures used by the person to safeguard the information from | ||||||
10 | becoming available to persons other than those selected by the | ||||||
11 | person to have access to the information for limited purposes; | ||||||
12 | a detailed statement identifying the persons or class of | ||||||
13 | persons to whom the information has been disclosed; a | ||||||
14 | certification that the person has no knowledge that the | ||||||
15 | information has ever been published or disseminated or has | ||||||
16 | otherwise become a matter of general public knowledge; a | ||||||
17 | detailed discussion of why the person believes the information | ||||||
18 | to be of competitive value; and any other information that | ||||||
19 | shall support the claim.
| ||||||
20 | (h) Chemical disclosure information furnished under this | ||||||
21 | Section, Section 1-35, or Section 1-75 of this Act under a | ||||||
22 | claim of trade secret shall be protected from disclosure as a | ||||||
23 | trade secret if the Department determines that the statement of | ||||||
24 | justification demonstrates that:
| ||||||
25 | (1) the information has not been published, | ||||||
26 | disseminated, or otherwise become a matter of general |
| |||||||
| |||||||
1 | public knowledge; and
| ||||||
2 | (2) the information has competitive value. | ||||||
3 | There is a rebuttable presumption that the information has | ||||||
4 | not been published, disseminated, or otherwise become a matter | ||||||
5 | of general public knowledge if the person has taken reasonable | ||||||
6 | measures to prevent the information from becoming available to | ||||||
7 | persons other than those selected by the person to have access | ||||||
8 | to the information for limited purposes and the statement of | ||||||
9 | justification contains a certification that the person has no | ||||||
10 | knowledge that the information has ever been published, | ||||||
11 | disseminated, or otherwise become a matter of general public | ||||||
12 | knowledge.
| ||||||
13 | (i) Denial of a trade secret request under this Section | ||||||
14 | shall be appealable under the Administrative Review Law. | ||||||
15 | (j) A person whose request to inspect or copy a public | ||||||
16 | record is denied, in whole or in part, because of a grant of | ||||||
17 | trade secret protection may file a request for review with the | ||||||
18 | Public Access Counselor under Section 9.5 of the Freedom of | ||||||
19 | Information Act or for injunctive or declaratory relief under | ||||||
20 | Section 11 of the Freedom of Information Act for the purpose of | ||||||
21 | reviewing whether the Department properly determined that the | ||||||
22 | trade secret protection should be granted.
| ||||||
23 | (k) Except as otherwise provided in subsections (l) and (m) | ||||||
24 | of this Section, the Department must maintain the | ||||||
25 | confidentiality of chemical disclosure information furnished | ||||||
26 | under this Section, Section 1-35, or Section 1-75 of this Act |
| |||||||
| |||||||
1 | under a claim of trade secret, until the Department receives | ||||||
2 | official notification of a final order by a reviewing body with | ||||||
3 | proper jurisdiction that is not subject to further appeal | ||||||
4 | rejecting a grant of trade secret protection for that | ||||||
5 | information.
| ||||||
6 | (l) The Department shall adopt rules for the provision of | ||||||
7 | information furnished under a claim of trade secret to a health | ||||||
8 | professional who states a need for the information and | ||||||
9 | articulates why the information is needed. The health | ||||||
10 | professional may share that information with other persons as | ||||||
11 | may be professionally necessary, including, but not limited to, | ||||||
12 | the affected patient, other health professionals involved in | ||||||
13 | the treatment of the affected patient, the affected patient's | ||||||
14 | family members if the affected patient is unconscious, unable | ||||||
15 | to make medical decisions, or is a minor, the Centers for | ||||||
16 | Disease Control, and other government public health agencies. | ||||||
17 | Except as otherwise provided in this Section, any recipient of | ||||||
18 | the information shall not use the information for purposes | ||||||
19 | other than the health needs asserted in the request and shall | ||||||
20 | otherwise maintain the information as confidential. | ||||||
21 | Information so disclosed to a health professional shall in no | ||||||
22 | way be construed as publicly available. The holder of the trade | ||||||
23 | secret may request a confidentiality agreement consistent with | ||||||
24 | the requirements of this Section from all health professionals | ||||||
25 | to whom the information is disclosed as soon as circumstances | ||||||
26 | permit. The rules adopted by the Department shall also |
| |||||||
| |||||||
1 | establish procedures for providing the information in both | ||||||
2 | emergency and non-emergency situations.
| ||||||
3 | (m) In the event of a release of hydraulic fracturing | ||||||
4 | fluid, a hydraulic fracturing additive, or hydraulic | ||||||
5 | fracturing flowback, and when necessary to protect public | ||||||
6 | health or the environment, the Department may disclose | ||||||
7 | information furnished under a claim of trade secret to the | ||||||
8 | relevant county public health director or emergency manager, | ||||||
9 | the relevant fire department chief, the Director of the | ||||||
10 | Illinois Department of Public Health, the Director of the | ||||||
11 | Illinois Department of Agriculture, and the Director of the | ||||||
12 | Illinois Environmental Protection Agency upon request by that | ||||||
13 | individual. The Director of the Illinois Department of Public | ||||||
14 | Health, and the Director of the Illinois Environmental | ||||||
15 | Protection Agency, and the Director of the Illinois Department | ||||||
16 | of Agriculture may disclose this information to staff members | ||||||
17 | under the same terms and conditions as apply to the Director of | ||||||
18 | Natural Resources. Except as otherwise provided in this | ||||||
19 | Section, any recipient of the information shall not use the | ||||||
20 | information for purposes other than to protect public health or | ||||||
21 | the environment and shall otherwise maintain the information as | ||||||
22 | confidential. Information disclosed to staff shall in no way be | ||||||
23 | construed as publicly available. The holder of the trade secret | ||||||
24 | information may request a confidentiality agreement consistent | ||||||
25 | with the requirements of this Section from all persons to whom | ||||||
26 | the information is disclosed as soon as circumstances permit.
|
| |||||||
| |||||||
1 | Section 1-80. Water quality monitoring. | ||||||
2 | (a) Each applicant for a high volume horizontal hydraulic | ||||||
3 | fracturing permit shall provide the Department with a work plan | ||||||
4 | to ensure accurate and complete sampling and testing as | ||||||
5 | required under this Section. The work plan shall ensure | ||||||
6 | compliance with the requirements of this Section and include, | ||||||
7 | at a minimum, the following: | ||||||
8 | (1) information identifying all water sources within | ||||||
9 | the range of testing under this Section; | ||||||
10 | (2) a sampling plan and protocol, including | ||||||
11 | notification to the Department at least 7 calendar days | ||||||
12 | prior to sample collection; | ||||||
13 | (3) the name and contact information of an independent | ||||||
14 | third party under the supervision of a professional | ||||||
15 | engineer or professional geologist that shall be | ||||||
16 | designated to conduct sampling to establish a baseline as | ||||||
17 | provided for under subsection (b) of this Section; | ||||||
18 | (4) the name and contact information of an independent | ||||||
19 | third party under the supervision of a professional | ||||||
20 | engineer or professional geologist that shall be | ||||||
21 | designated to conduct sampling to establish compliance | ||||||
22 | with monitoring as provided within subsection (c) of this | ||||||
23 | Section; | ||||||
24 | (5) the name and contact information of an independent | ||||||
25 | testing laboratory, certified to perform the required |
| |||||||
| |||||||
1 | laboratory method, to conduct the analysis required under | ||||||
2 | subsections (b) and (c) of this Section; | ||||||
3 | (6) proof of access and the right to test within the | ||||||
4 | area for testing prescribed within subsection (b) of this | ||||||
5 | Section during the duration of high volume horizontal | ||||||
6 | hydraulic fracturing operations covered under the permit | ||||||
7 | application, and copies of any non-disclosure agreements | ||||||
8 | made under subsection (d) of this Section; and | ||||||
9 | (7) identification of practicable contingency | ||||||
10 | measures, including provision for alternative drinking | ||||||
11 | water supplies, which could be implemented in the event of | ||||||
12 | pollution or diminution of a water source as provided for | ||||||
13 | in Section 1-83. | ||||||
14 | (b) Prior to conducting high volume horizontal hydraulic | ||||||
15 | fracturing operations on a well, a permittee shall retain an | ||||||
16 | independent third party, as required within paragraph (3) of | ||||||
17 | subsection (a) of this Section, and shall conduct baseline | ||||||
18 | water quality sampling of all water sources within 1,500 feet | ||||||
19 | of the well site prior to any fracturing activities. Where (i) | ||||||
20 | there are no groundwater wells within 1,500 feet of a well | ||||||
21 | site, or access to groundwater wells within 1,500 feet of the | ||||||
22 | well site has been denied under subsection (d) of this Section, | ||||||
23 | and (ii) the proposed well site is located within 1,500 feet | ||||||
24 | horizontally from any portion of an aquifer, the permittee | ||||||
25 | shall conduct sampling of the aquifer at the closest | ||||||
26 | groundwater well with access to the aquifer to which the |
| |||||||
| |||||||
1 | permittee has not been denied access under subsection (d) of | ||||||
2 | this Section. Installation of a groundwater monitoring well is | ||||||
3 | not required to satisfy the sampling requirements of this | ||||||
4 | Section. The samples collected by the independent third party, | ||||||
5 | under the supervision of a professional engineer or | ||||||
6 | professional geologist, shall be analyzed by an independent | ||||||
7 | testing laboratory in accordance with paragraph (4) of | ||||||
8 | subsection (a) of this Section. Testing shall be done by | ||||||
9 | collection of a minimum of 3 samples for each water source | ||||||
10 | required to be tested under this Section. The permittee shall, | ||||||
11 | within 7 calendar days after receipt of results of tests | ||||||
12 | conducted under this subsection, submit the results to the | ||||||
13 | Department or to the owner of the water source under a | ||||||
14 | non-disclosure agreement under subsection (d) of this Section. | ||||||
15 | The Department shall post the results on its website within 7 | ||||||
16 | calendar days after receipt. The results shall, at a minimum, | ||||||
17 | include a detailed description of the sampling and testing | ||||||
18 | conducted under this subsection, the chain of custody of the | ||||||
19 | samples, and quality control of the testing. | ||||||
20 | (c) After baseline tests are conducted under subsection (b) | ||||||
21 | of this Section and following issuance of a permit by the | ||||||
22 | Department, the permittee shall have all water sources which | ||||||
23 | are subjected to sampling under subsection (b) of this Section | ||||||
24 | sampled and tested in the same manner 6 months, 18 months, and | ||||||
25 | 30 months after the high volume horizontal hydraulic fracturing | ||||||
26 | operations have been completed. Sampling of a water source |
| |||||||
| |||||||
1 | under this subsection is not required if the water source was | ||||||
2 | sampled under this subsection or subsection (b) within the | ||||||
3 | previous month. The permittee shall notify the Department at | ||||||
4 | least 7 calendar days prior to taking the sample. The permittee | ||||||
5 | shall, within 7 calendar days after receipt of results of tests | ||||||
6 | conducted under this subsection (c), submit the results to the | ||||||
7 | Department or to the owner of the water source pursuant to a | ||||||
8 | non-disclosure agreement under subsection (d) of this Section. | ||||||
9 | The results shall include, at a minimum, a detailed description | ||||||
10 | of the sampling and testing conducted under this subsection, | ||||||
11 | the chain of custody of the samples, and quality control of the | ||||||
12 | testing. | ||||||
13 | (d) Sampling of private water wells or ponds wholly | ||||||
14 | contained within private property shall not be required where | ||||||
15 | the owner of the private property declines, expressly and in | ||||||
16 | writing, to provide access or permission for sampling. If the | ||||||
17 | owner of the private property declines to provide proof of his | ||||||
18 | or her refusal to allow access in writing, the operator shall | ||||||
19 | provide the Department evidence as to the good faith efforts | ||||||
20 | that were made to secure the required documentation. Permits | ||||||
21 | issued under this Act cannot be denied if the owner of the | ||||||
22 | private property declines to provide proof of his or her | ||||||
23 | refusal to allow access in writing and the permittee provides | ||||||
24 | evidence that good faith efforts were made to gain access for | ||||||
25 | the purposes of conducting tests. The owners of private | ||||||
26 | property may condition access or permission for sampling of a |
| |||||||
| |||||||
1 | private water well or pond wholly within the property or a | ||||||
2 | portion of any perennial stream or river that flows through the | ||||||
3 | property under a non-disclosure agreement, which must include | ||||||
4 | the following terms and conditions: | ||||||
5 | (1) the permittee shall provide the results of the | ||||||
6 | water quality testing to the property owners;
| ||||||
7 | (2) the permittee shall retain the results of the water | ||||||
8 | quality testing until at least one year after completion of | ||||||
9 | all monitoring under this Section for review by the | ||||||
10 | Department upon request;
| ||||||
11 | (3) the permittee shall not file with the Department | ||||||
12 | the results of the water quality testing, except under | ||||||
13 | paragraph (4) of subsection (d) of this Section; and
| ||||||
14 | (4) the permittee shall notify the Department within 7 | ||||||
15 | calendar days of its receipt of the water quality data | ||||||
16 | where any testing under subsection (c) of this Section | ||||||
17 | indicates that concentrations exceed the standards or | ||||||
18 | criteria referenced in the definition of pollution or | ||||||
19 | diminution under Section 1-5 of this Act. | ||||||
20 | (e) Each set of samples collected under subsections (b) and | ||||||
21 | (c) of this Section shall include analyses for: | ||||||
22 | (1) pH; | ||||||
23 | (2) total dissolved solids, dissolved methane, | ||||||
24 | dissolved propane, dissolved ethane, alkalinity, and | ||||||
25 | specific conductance; | ||||||
26 | (3) chloride, sulfate, arsenic, barium, calcium, |
| |||||||
| |||||||
1 | chromium, iron, magnesium, selenium, cadmium, lead, | ||||||
2 | manganese, mercury, and silver; | ||||||
3 | (4) BTEX; and | ||||||
4 | (5) gross alpha and beta particles to determine the | ||||||
5 | presence of any naturally occurring radioactive materials.
| ||||||
6 | Sampling shall, at a minimum, be consistent with the work | ||||||
7 | plan and allow for a determination of whether any hydraulic | ||||||
8 | fracturing additive or other contaminant has caused pollution | ||||||
9 | or diminution for purposes of Sections 1-83 and 1-85 of this | ||||||
10 | Act. | ||||||
11 | Section 1-83. Order authority. | ||||||
12 | (a) Any person who has reason to believe they have incurred | ||||||
13 | pollution or diminution of a water source as a result of a high | ||||||
14 | volume horizontal hydraulic fracturing treatment of a well may | ||||||
15 | notify the Department and request that an investigation be | ||||||
16 | conducted. | ||||||
17 | (b) Within 30 calendar days after notification, the | ||||||
18 | Department shall initiate the investigation of the claim and | ||||||
19 | make a reasonable effort to reach a determination within 180 | ||||||
20 | calendar days after notification. The Department may contact | ||||||
21 | the Agency to seek the Agency's assistance in water quality | ||||||
22 | sampling. The Agency may seek cost recovery under subsection | ||||||
23 | (e) of Section 1-87 of this Act and recover all costs for | ||||||
24 | samples taken for the investigation under this Section. | ||||||
25 | (c) Any person conducting or who has conducted high volume |
| |||||||
| |||||||
1 | horizontal hydraulic fracturing operations shall supply any | ||||||
2 | information requested by the Department to assist the | ||||||
3 | Department. The Department shall give due consideration to any | ||||||
4 | information submitted during the course of the investigation. | ||||||
5 | (d) If sampling results or other information obtained as | ||||||
6 | part of the investigation or the results of tests conducted | ||||||
7 | under subsection (c) of Section 1-80 of this Act indicate that | ||||||
8 | concentrations exceed the standards or criteria referenced by | ||||||
9 | pollution or diminution under Section 1-5 of this Act, the | ||||||
10 | Department shall issue an order to the permittee as necessary | ||||||
11 | to require permanent or temporary replacement of a water | ||||||
12 | source. In addition to any other penalty available under the | ||||||
13 | law and consistent with the Department's order, the permittee | ||||||
14 | shall restore or replace the affected supply with an | ||||||
15 | alternative source of water adequate in quantity and quality | ||||||
16 | for the purposes served by the water source. The quality of a | ||||||
17 | restored or replaced water source shall meet or exceed the | ||||||
18 | quality of the original water source based upon the results of | ||||||
19 | the baseline test results under subsection (b) of Section 1-80 | ||||||
20 | for that water source, or other available information. The | ||||||
21 | Department may require the permittee to take immediate action, | ||||||
22 | including but not limited to, repair, replacement, alteration, | ||||||
23 | or prohibition of operation of equipment permitted by the | ||||||
24 | Department. The Department may issue conditions within any | ||||||
25 | order to protect the public health or welfare or the | ||||||
26 | environment. |
| |||||||
| |||||||
1 | (e) Within 15 calendar days after a determination has been | ||||||
2 | made regarding the pollution or diminution, the Department | ||||||
3 | shall provide notice of its findings and the orders, if any, to | ||||||
4 | all persons that use the water source for domestic, | ||||||
5 | agricultural, industrial, or any other legitimate beneficial | ||||||
6 | uses. | ||||||
7 | (f) Upon issuance of an Order or a finding of pollution or | ||||||
8 | diminution under subsection (d) of this Section, the Department | ||||||
9 | shall contact the Agency and forward all information from the | ||||||
10 | investigation to the Agency. The Agency shall investigate the | ||||||
11 | potential for violations as designated within Section 1-87 of | ||||||
12 | this Act. | ||||||
13 | (g) Reports of potential cases of water pollution that may | ||||||
14 | be associated with high volume horizontal hydraulic fracturing | ||||||
15 | operations may be submitted electronically. The Department | ||||||
16 | shall establish a format for these reports to be submitted | ||||||
17 | through the website developed under Section 1-110 of this Act. | ||||||
18 | The Department shall electronically provide these reports to | ||||||
19 | the Agency. | ||||||
20 | (h) The Department shall publish, on its website, lists of | ||||||
21 | confirmed cases of pollution or diminution that result from | ||||||
22 | high volume horizontal hydraulic fracturing operations. This | ||||||
23 | information shall be searchable by county. | ||||||
24 | (i) Nothing in this Section shall prevent the Department | ||||||
25 | from issuing a cessation order under Section 8a of the Illinois | ||||||
26 | Oil and Gas Act. |
| |||||||
| |||||||
1 | Section 1-85. Presumption of pollution or diminution. | ||||||
2 | (a) This Section establishes a rebuttable presumption for | ||||||
3 | the purposes of evidence and liability under State law | ||||||
4 | regarding claims of pollution or diminution of a water source | ||||||
5 | and for use regarding the investigation and order authority | ||||||
6 | under Section 1-83. | ||||||
7 | (b) Unless rebutted by a defense established in subsection | ||||||
8 | (c) of this Section, it shall be presumed that any person | ||||||
9 | conducting or who has conducted high volume horizontal | ||||||
10 | hydraulic fracturing operations shall be liable for pollution | ||||||
11 | or diminution of a water supply if: | ||||||
12 | (1) the water source is within 1,500 feet of the well | ||||||
13 | site; | ||||||
14 | (2) water quality data showed no pollution or | ||||||
15 | diminution prior to the start of high volume horizontal | ||||||
16 | hydraulic fracturing operations; and | ||||||
17 | (3) the pollution or diminution occurred during high | ||||||
18 | volume horizontal hydraulic fracturing operations or no | ||||||
19 | more than 30 months after the completion of the high volume | ||||||
20 | horizontal hydraulic fracturing operations. | ||||||
21 | (c) To rebut the presumption established under this | ||||||
22 | Section, a person presumed responsible must affirmatively | ||||||
23 | prove by clear and convincing evidence any of the following: | ||||||
24 | (1) the water source is not within 1,500 feet of the | ||||||
25 | well site; |
| |||||||
| |||||||
1 | (2) the pollution or diminution occurred prior to high | ||||||
2 | volume horizontal hydraulic fracturing operations or more | ||||||
3 | than 30 months after the completion of the high volume | ||||||
4 | horizontal hydraulic fracturing operations; or | ||||||
5 | (3) the pollution or diminution occurred as the result | ||||||
6 | of an identifiable cause other than the high volume | ||||||
7 | horizontal hydraulic fracturing operations. | ||||||
8 | Section 1-87. Water quality investigation and enforcement. | ||||||
9 | (a) No person shall cause or allow high volume horizontal | ||||||
10 | hydraulic fracturing operations permitted under this Act to | ||||||
11 | violate Section 12 of the Illinois Environmental Protection Act | ||||||
12 | or surface water or groundwater regulations adopted under the | ||||||
13 | Illinois Environmental Protection Act. | ||||||
14 | (b) The Agency shall have the duty to investigate | ||||||
15 | complaints that activities under this Act have caused a | ||||||
16 | violation of Section 12 of the Illinois Environmental | ||||||
17 | Protection Act or surface or groundwater rules adopted under | ||||||
18 | the Illinois Environmental Protection Act. Any action taken by | ||||||
19 | the Agency in enforcing these violations shall be taken under | ||||||
20 | and consistent with the Illinois Environmental Protection Act, | ||||||
21 | including but not limited to, the Agency's authority to seek a | ||||||
22 | civil or criminal cause of action under that Act. The test | ||||||
23 | results under subsections (b) and (c) of Section 1-80 of this | ||||||
24 | Act may be considered by the Agency during an investigation | ||||||
25 | under this Section. |
| |||||||
| |||||||
1 | (c) A person who has reason to believe they have incurred | ||||||
2 | contamination of a water source as a result of high volume | ||||||
3 | horizontal hydraulic fracturing may notify the Agency and | ||||||
4 | request an investigation be conducted. The Agency shall forward | ||||||
5 | this request to the Department for consideration of an | ||||||
6 | investigation under Section 1-83 of this Act. If the Agency is | ||||||
7 | provided with notice under subsection (f) of Section 1-83, the | ||||||
8 | Agency shall conduct an investigation to determine whether | ||||||
9 | pollution or diminution is continuing to occur at the location | ||||||
10 | subject to the order, as well as locations identified by the | ||||||
11 | Department or at any other water source within 1,500 feet of | ||||||
12 | the well site. Any person conducting or who has conducted high | ||||||
13 | volume horizontal hydraulic fracturing operations shall supply | ||||||
14 | any information requested to assist the Agency in its | ||||||
15 | investigation. The Agency shall give due consideration to any | ||||||
16 | information submitted during the course of the investigation. | ||||||
17 | (d) Pollution or diminution is a violation of this Act and | ||||||
18 | may be pursued by the Department subject to the procedures and | ||||||
19 | remedies under Sections 1-100 and 1-105 of this Act. | ||||||
20 | (e) If an Agency investigation under Section 1-83 or | ||||||
21 | subsection (c) of this Section confirms that the cause of the | ||||||
22 | pollution, diminution, or water pollution is attributable to | ||||||
23 | high volume horizontal hydraulic fracturing operations, in | ||||||
24 | addition to any other relief available under law, the permittee | ||||||
25 | shall be required to reimburse the costs and reasonable | ||||||
26 | expenses incurred by the Agency for all activities related to |
| |||||||
| |||||||
1 | the investigation and cleanup. These costs shall include, but | ||||||
2 | not be limited to, inspections, investigations, analyses, | ||||||
3 | personnel, direct and indirect costs, studies, assessments, | ||||||
4 | reports, and review and evaluation of that data, as well as | ||||||
5 | costs under the Agency's review of whether the quality of a | ||||||
6 | restored or replaced water supply meets or exceeds the quality | ||||||
7 | of the water supply before it was affected by the permittee. | ||||||
8 | Costs shall be reimbursed to the Agency by the permittee within | ||||||
9 | 30 calendar days after receipt of a written request for | ||||||
10 | reimbursement by the Agency. For all costs that remain unpaid | ||||||
11 | following 30 calendar days after receipt of a written request | ||||||
12 | for reimbursement, the Agency may institute a civil action for | ||||||
13 | cost recovery under subsection (e) of Section 1-101 of this | ||||||
14 | Act. Failure to reimburse the Agency within 30 calendar days | ||||||
15 | after receipt of the written request for reimbursement is a | ||||||
16 | violation of this Act. Reimbursement of costs collected under | ||||||
17 | this subsection shall be deposited by the Agency into the | ||||||
18 | Illinois Clean Water Fund. | ||||||
19 | Section 1-95. Plugging; restoration. | ||||||
20 | (a) The permittee shall perform and complete plugging of | ||||||
21 | the well and restoration of the well site in accordance with | ||||||
22 | the Illinois Oil and Gas Act and any and all rules adopted | ||||||
23 | thereunder. The permittee shall bear all costs related to | ||||||
24 | plugging of the well and reclamation of the well site. If the | ||||||
25 | permittee fails to plug the well in accordance with this |
| |||||||
| |||||||
1 | Section, the owner of the well shall be responsible for | ||||||
2 | complying with this Section. | ||||||
3 | (b) Prior to conducting high volume horizontal hydraulic | ||||||
4 | fracturing operations at a well site, the permittee shall cause | ||||||
5 | to be plugged all previously unplugged well bores within 750 | ||||||
6 | feet of any part of the horizontal well bore that penetrated | ||||||
7 | within 400 vertical feet of the formation that will be | ||||||
8 | stimulated as part of the high volume horizontal hydraulic | ||||||
9 | fracturing operations. | ||||||
10 | (c) For well sites where high volume horizontal hydraulic | ||||||
11 | fracturing operations were permitted to occur, the operator | ||||||
12 | shall restore any lands used by the operator other than the | ||||||
13 | well site and production facility to a condition as closely | ||||||
14 | approximating the pre-drilling conditions that existed before | ||||||
15 | the land was disturbed for any stage of site preparation | ||||||
16 | activities, drilling, and high volume horizontal hydraulic | ||||||
17 | fracturing operations. Restoration shall be commenced within 6 | ||||||
18 | months of completion of the well site and completed within 12 | ||||||
19 | months. Restoration shall include, but is not limited to, | ||||||
20 | repair of tile lines, repair of fences and barriers, mitigation | ||||||
21 | of soil compaction and rutting, application of fertilizer or | ||||||
22 | lime to restore the fertility of disturbed soil, and repair of | ||||||
23 | soil conservation practices such as terraces and grassed | ||||||
24 | waterways. | ||||||
25 | (d) Unless contractually agreed to the contrary by the | ||||||
26 | permittee and surface owner, the permittee shall restore the |
| |||||||
| |||||||
1 | well site and production facility in accordance with the | ||||||
2 | applicable restoration requirements in subsection (c) of this | ||||||
3 | Section and shall remove all equipment and materials involved | ||||||
4 | in site preparation, drilling, and high volume horizontal | ||||||
5 | hydraulic fracturing operations, including tank batteries, | ||||||
6 | rock and concrete pads, oil field debris, injection and flow | ||||||
7 | lines at or above the surface, electric power lines and poles | ||||||
8 | extending on or above the surface, tanks, fluids, pipes at or | ||||||
9 | above the surface, secondary containment measures, rock or | ||||||
10 | concrete bases, drilling equipment and supplies, and any and | ||||||
11 | all other equipment, facilities, or materials used during any | ||||||
12 | stage of site preparation work, drilling, or hydraulic | ||||||
13 | fracturing operations at the well site. Work on the removal of | ||||||
14 | equipment and materials at the well site shall begin within 6 | ||||||
15 | months after plugging the final well on the well site and be | ||||||
16 | completed no later than 12 months after the last producing well | ||||||
17 | on the well site has been plugged. Roads installed as part of | ||||||
18 | the oil and gas operation may be left in place if provided in | ||||||
19 | the lease or pursuant to agreement with the surface owner, as | ||||||
20 | applicable. | ||||||
21 | Section 1-96. Seismicity. | ||||||
22 | (a) For purposes of this Section, "induced seismicity" | ||||||
23 | means an earthquake event that is felt, recorded by the | ||||||
24 | national seismic network, and attributable to a Class II | ||||||
25 | injection well used for disposal of flow-back and produced |
| |||||||
| |||||||
1 | fluid from hydraulic fracturing operations. | ||||||
2 | (b) The Department shall adopt rules, in consultation with | ||||||
3 | the Illinois State Geological Survey, establishing a protocol | ||||||
4 | for controlling operational activity of Class II injection | ||||||
5 | wells in an instance of induced seismicity. | ||||||
6 | (c) The rules adopted by the Department under this Section | ||||||
7 | shall employ a "traffic light" control system allowing for low | ||||||
8 | levels of seismicity while including additional monitoring and | ||||||
9 | mitigation requirements when seismic events are of sufficient | ||||||
10 | intensity to result in a concern for public health and safety.
| ||||||
11 | (d) The additional mitigation requirements referenced in | ||||||
12 | subsection (c) of this Section shall provide for either the | ||||||
13 | scaling back of injection operations with monitoring for | ||||||
14 | establishment of a potentially safe operation level or the | ||||||
15 | immediate cessation of injection operations. | ||||||
16 | Section 1-97. Department mapping and reporting. On or | ||||||
17 | before February 1, 2014, the Department shall, with the | ||||||
18 | assistance of the Illinois State Geological Survey, submit a | ||||||
19 | report to the General Assembly and Governor identifying the | ||||||
20 | following in Illinois and include any recommendations for | ||||||
21 | additional legislative or administrative action on these | ||||||
22 | items: | ||||||
23 | (a) the location of resources of shale gas and oil, | ||||||
24 | conventional gas and oil, and process materials, including sand | ||||||
25 | and other naturally occurring geologic materials used in high |
| |||||||
| |||||||
1 | volume horizontal hydraulic fracturing operations;
| ||||||
2 | (b) the potential impacts of high volume horizontal | ||||||
3 | hydraulic fracturing operations on:
| ||||||
4 | (1) sites owned, managed or leased by the Department;
| ||||||
5 | (2) nature preserves;
| ||||||
6 | (3) sites on the Register of Land and Water Reserves;
| ||||||
7 | (4) the availability of water for human consumption and | ||||||
8 | general domestic use; and
| ||||||
9 | (5) the potential for influencing natural seismic | ||||||
10 | activity.
| ||||||
11 | Two years after the effective date of the first high volume | ||||||
12 | horizontal hydraulic fracturing permit issued by the | ||||||
13 | Department, and every 3 years thereafter, the Department shall | ||||||
14 | prepare a report that examines the following:
| ||||||
15 | (1) the number of high volume horizontal hydraulic | ||||||
16 | fracturing permits issued by the Department, on an annual | ||||||
17 | basis; | ||||||
18 | (2) a map showing the locations in this State where | ||||||
19 | high volume horizontal hydraulic fracturing operations | ||||||
20 | have been permitted by the Department; | ||||||
21 | (3) identification of the latest scientific research, | ||||||
22 | best practices, and technological improvements related to | ||||||
23 | high volume horizontal hydraulic fracturing operations and | ||||||
24 | methods to protect the environment and public health; | ||||||
25 | (4) any confirmed environmental impacts in this State | ||||||
26 | due to high volume horizontal hydraulic fracturing |
| |||||||
| |||||||
1 | operations, including, but not limited to, any reportable | ||||||
2 | release of hydraulic fracturing flowback, hydraulic | ||||||
3 | fracturing fluid, and hydraulic fracturing additive; | ||||||
4 | (5) confirmed public health impacts in this State due | ||||||
5 | to high volume horizontal hydraulic fracturing operations; | ||||||
6 | (6) a comparison of the revenues generated under | ||||||
7 | subsection (e) of Section 1-35 of this Act to the | ||||||
8 | Department's costs associated with implementing and | ||||||
9 | administering provisions of this Act; | ||||||
10 | (7) a comparison of the revenues generated under | ||||||
11 | subsection (e) of Section 1-87 of this Act to the Agency's | ||||||
12 | costs associated with implementing and administering | ||||||
13 | provisions of this Act; | ||||||
14 | (7.5) a summary of revenues generated annually from | ||||||
15 | income, ad valorem, sales, and any other State and local | ||||||
16 | taxes applicable to activity permitted under this Act by | ||||||
17 | the Department, including an estimate of the income tax | ||||||
18 | generated from lease payments and royalty payments; | ||||||
19 | (8) a description of any modifications to existing | ||||||
20 | programs, practices, or rules related to high volume | ||||||
21 | horizontal hydraulic fracturing operations made by the | ||||||
22 | Department; | ||||||
23 | (9) any problems or issues the Department identifies as | ||||||
24 | it implements and administers the provisions of this Act; | ||||||
25 | (10) any recommendations for legislative action by the | ||||||
26 | General Assembly to address the findings in the report; and |
| |||||||
| |||||||
1 | (11) any other information the Department deems | ||||||
2 | relevant regarding its specific experiences implementing | ||||||
3 | and administering the provisions of this Act and, | ||||||
4 | generally, high volume horizontal hydraulic fracturing | ||||||
5 | operations. | ||||||
6 | The first report shall also examine any studies issued by | ||||||
7 | the United States Environmental Protection Agency regarding | ||||||
8 | high volume horizontal hydraulic fracturing operations. The | ||||||
9 | report required by this Section shall be provided to the | ||||||
10 | General Assembly and Governor. | ||||||
11 | Section 1-98. Hydraulic fracturing completion reporting.
| ||||||
12 | (a) For the purposes of this Section, "hydraulic fracturing | ||||||
13 | operations" means all stages of a stimulation treatment of a | ||||||
14 | horizontal well as defined by this Act by the pressurized | ||||||
15 | application of more than 80,000 gallons but less than 300,001 | ||||||
16 | gallons of hydraulic fracturing fluid and proppant to initiate | ||||||
17 | or propagate fractures in a geologic formation to enhance | ||||||
18 | extraction or production of oil or gas.
| ||||||
19 | (b) Within 60 calendar days after the conclusion of | ||||||
20 | hydraulic fracturing operations, the operator shall file a | ||||||
21 | hydraulic fracturing operations completion report with the | ||||||
22 | Department. The hydraulic fracturing operations completion | ||||||
23 | report shall contain the following information:
| ||||||
24 | (1) the name and location of the well;
| ||||||
25 | (2) the total and per-stage gallons of hydraulic |
| |||||||
| |||||||
1 | fracturing fluid used at the well;
| ||||||
2 | (3) depth of the wellbore (including both total | ||||||
3 | vertical depth and total measured depth);
| ||||||
4 | (4) length of horizontal wellbore;
| ||||||
5 | (5) the maximum surface treating pressure used;
| ||||||
6 | (6) the formation targeted;
| ||||||
7 | (7) the number of hydraulic fracturing stages; and
| ||||||
8 | (8) total perforated interval and individual | ||||||
9 | perforation intervals.
| ||||||
10 | Section 1-99. Task Force on Hydraulic Fracturing | ||||||
11 | Regulation.
| ||||||
12 | (a) There is hereby created the Task Force on Hydraulic | ||||||
13 | Fracturing Regulation.
| ||||||
14 | (b) The task force shall consist of the following members | ||||||
15 | as follows: | ||||||
16 | (1) Four legislators, appointed one each by the | ||||||
17 | President of the Senate, the Minority Leader of the Senate, | ||||||
18 | the Speaker of the House of Representatives, and the | ||||||
19 | Minority Leader of the House of Representatives;
| ||||||
20 | (2) The Governor, or his or her representative;
| ||||||
21 | (3) The Director of the Illinois Environmental | ||||||
22 | Protection Agency, or his or her representative;
| ||||||
23 | (4) The Director of the Illinois Department of Natural | ||||||
24 | Resources, or his or her representative;
| ||||||
25 | (5) The Attorney General of the State of Illinois, or |
| |||||||
| |||||||
1 | his or her representative;
| ||||||
2 | (6) The Director of the Illinois State Geological | ||||||
3 | Survey, or his or her representative;
| ||||||
4 | (7) Four representatives from environmental | ||||||
5 | organizations, at least one of whom shall be a national | ||||||
6 | environmental organization, at least one of whom shall be a | ||||||
7 | Midwest regional environmental organization, and at least | ||||||
8 | one of whom shall be an Illinois-based environmental | ||||||
9 | organization, appointed by the Director of the Illinois | ||||||
10 | Department of Natural Resources; and
| ||||||
11 | (8) Four representatives from entities representing | ||||||
12 | the interests of the oil and gas industry, at least one of | ||||||
13 | whom shall represent companies whose activities are | ||||||
14 | national in scope, at least one of whom shall represent | ||||||
15 | companies whose activities are primarily limited to this | ||||||
16 | State, at least one of whom shall represent an industry | ||||||
17 | trade association, and at least one of whom shall represent | ||||||
18 | a statewide labor federation representing more than one | ||||||
19 | international union, appointed by the Director of the | ||||||
20 | Illinois Department of Natural Resources. | ||||||
21 | (c) The Director of the Illinois Department of Natural | ||||||
22 | Resources shall serve as chairperson of the task force, and the | ||||||
23 | Department shall be responsible for administering its | ||||||
24 | operations and ensuring that the requirements of this Section | ||||||
25 | are met.
| ||||||
26 | (d) The task force may consult with any persons or entities |
| |||||||
| |||||||
1 | it deems necessary to carry out its mandate.
| ||||||
2 | (e) Members of the task force shall be appointed no later | ||||||
3 | than 90 days after the effective date of this amendatory Act of | ||||||
4 | the 98th General Assembly. The members of the task force shall | ||||||
5 | receive no compensation for serving as members of the task | ||||||
6 | force.
| ||||||
7 | (f) The task force shall (1) prepare a report evaluating | ||||||
8 | the scope of hydraulic fracturing activity in the State and (2) | ||||||
9 | provide recommendations to the General Assembly as to whether | ||||||
10 | further legislation is needed to regulate hydraulic fracturing | ||||||
11 | in this State. In performing these tasks, the task force shall | ||||||
12 | consider, at a minimum, the data collected by the Department | ||||||
13 | under Section 1-98 of this Act and the Illinois Oil and Gas | ||||||
14 | Act.
| ||||||
15 | (g) The task force shall submit its report and | ||||||
16 | recommendations specified in subsection (f) of this Section to | ||||||
17 | the General Assembly on or before September 15, 2016.
| ||||||
18 | (h) The task force, upon issuance of its report and | ||||||
19 | recommendations, is dissolved and this Section is repealed. | ||||||
20 | Section 1-100. Criminal offenses; penalties. | ||||||
21 | (a) Except as otherwise provided in this Section, it shall | ||||||
22 | be a Class A misdemeanor to knowingly violate this Act, its | ||||||
23 | rules, or any permit or term or condition thereof, or knowingly | ||||||
24 | to submit any false information under this Act or regulations | ||||||
25 | adopted thereunder, or under any permit or term or condition |
| |||||||
| |||||||
1 | thereof. A person convicted or sentenced under this subsection | ||||||
2 | (a) shall be subject to a fine of not to exceed $10,000 for | ||||||
3 | each day of violation. | ||||||
4 | (b) It is unlawful for a person knowingly to violate: | ||||||
5 | (1) subsection (c) of Section 1-25 of this Act; | ||||||
6 | (2) subsection (d) of Section 1-25 of this Act; | ||||||
7 | (3) subsection (a) of Section 1-30 of this Act; | ||||||
8 | (4) paragraph (9) of subsection (c) of Section 1-75 of | ||||||
9 | this Act; or | ||||||
10 | (5) subsection (a) of Section 1-87 of this Act. | ||||||
11 | A person convicted or sentenced for any knowing violation | ||||||
12 | of the requirements or prohibitions listed in this subsection | ||||||
13 | (b) commits a Class 4 felony, and in addition to any other | ||||||
14 | penalty prescribed by law is subject to a fine not to exceed | ||||||
15 | $25,000 for each day of violation. A person who commits a | ||||||
16 | second or subsequent knowing violation of the requirements or | ||||||
17 | prohibitions listed in this subsection (b) commits a Class 3 | ||||||
18 | felony and, in addition to any other penalties provided by law, | ||||||
19 | is subject to a fine not to exceed $50,000 for each day of | ||||||
20 | violation. | ||||||
21 | (c) Any person who knowingly makes a false, fictitious, or | ||||||
22 | fraudulent material statement, orally or in writing, to the | ||||||
23 | Department or Agency as required by this Act, its rules, or any | ||||||
24 | permit, term, or condition of a permit, commits a Class 4 | ||||||
25 | felony, and each false, fictitious, or fraudulent statement or | ||||||
26 | writing shall be considered a separate violation. In addition |
| |||||||
| |||||||
1 | to any other penalty prescribed by law, persons in violation of | ||||||
2 | this subsection (c) is subject to a fine of not to exceed | ||||||
3 | $25,000 for each day of violation. A person who commits a | ||||||
4 | second or subsequent knowing violation of this subsection (c) | ||||||
5 | commits a Class 3 felony and, in addition to any other | ||||||
6 | penalties provided by law, is subject to a fine not to exceed | ||||||
7 | $50,000 for each day of violation. | ||||||
8 | (d) Any criminal action provided for under this Section | ||||||
9 | shall be brought by the State's Attorney of the county in which | ||||||
10 | the violation occurred or by the Attorney General and shall be | ||||||
11 | conducted in accordance with the applicable provision of the | ||||||
12 | Code of Criminal Procedure of 1963. For criminal conduct in | ||||||
13 | this Section, the period for commencing prosecution shall not | ||||||
14 | begin to run until the offense is discovered by or reported to | ||||||
15 | a State or local agency having authority to investigate | ||||||
16 | violations of this Act. | ||||||
17 | Section 1-101. Violations; civil penalties and | ||||||
18 | injunctions.
| ||||||
19 | (a) Except as otherwise provided in this Section, any | ||||||
20 | person who violates any provision of this Act or any rule or | ||||||
21 | order adopted under this Act or any permit issued under this | ||||||
22 | Act shall be liable for a civil penalty not to exceed $50,000 | ||||||
23 | for the violation and an additional civil penalty not to exceed | ||||||
24 | $10,000 for each day during which the violation continues. | ||||||
25 | (b) Any person who violates any requirements or |
| |||||||
| |||||||
1 | prohibitions of provisions listed in this subsection (b) is | ||||||
2 | subject to a civil penalty not to exceed $100,000 for the | ||||||
3 | violation and an additional civil penalty not to exceed $20,000 | ||||||
4 | for each day during which the violation continues. The | ||||||
5 | following are violations are subject to the penalties of this | ||||||
6 | subsection (b): | ||||||
7 | (1) subsection (c) of Section 1-25 of this Act; | ||||||
8 | (2) subsection (d) of Section 1-25 of this Act; | ||||||
9 | (3) subsection (a) of Section 1-30 of this Act;
| ||||||
10 | (4) paragraph (9) of subsection (c) of Section 1-75 of | ||||||
11 | this Act; or | ||||||
12 | (5) subsection (a) of Section 1-87 of this Act. | ||||||
13 | (c) Any person who knowingly makes, submits, causes to be | ||||||
14 | made, or causes to be submitted a false report of pollution, | ||||||
15 | diminution, or water pollution attributable to high volume | ||||||
16 | horizontal hydraulic fracturing operations that results in an | ||||||
17 | investigation by the Department or Agency under this Act shall | ||||||
18 | be liable for a civil penalty not to exceed $1,000 for the | ||||||
19 | violation. | ||||||
20 | (d) The penalty shall be recovered by a civil action before | ||||||
21 | the circuit court of the county in which the well site is | ||||||
22 | located or in the circuit court of Sangamon County. Venue shall | ||||||
23 | be considered proper in either court. These penalties may, upon | ||||||
24 | the order of a court of competent jurisdiction, be made payable | ||||||
25 | to the Environmental Protection Trust Fund, to be used in | ||||||
26 | accordance with the provisions of the Environmental Protection |
| |||||||
| |||||||
1 | Trust Fund Act.
| ||||||
2 | (e) The State's Attorney of the county in which the | ||||||
3 | violation occurred, or the Attorney General, may, at the | ||||||
4 | request of the Department or on his or her own motion, | ||||||
5 | institute a civil action for the recovery of costs, an | ||||||
6 | injunction, prohibitory or mandatory, to restrain violations | ||||||
7 | of this Act, any rule adopted under this Act, the permit or | ||||||
8 | term or condition of the permit, or to require other actions as | ||||||
9 | may be necessary to address violations of this Act, any rule | ||||||
10 | adopted under this Act, the permit or term or condition of the | ||||||
11 | permit. | ||||||
12 | (f) The State's Attorney of the county in which the | ||||||
13 | violation occurred, or the Attorney General, shall bring | ||||||
14 | actions under this Section in the name of the People of the | ||||||
15 | State of Illinois. Without limiting any other authority that | ||||||
16 | may exist for the awarding of attorney's fees and costs, a | ||||||
17 | court of competent jurisdiction may award costs and reasonable | ||||||
18 | attorney's fees, including the reasonable costs of expert | ||||||
19 | witnesses and consultants, to the State's Attorney or the | ||||||
20 | Attorney General in a case where he or she has prevailed | ||||||
21 | against a person who has committed a knowing or repeated | ||||||
22 | violation of this Act, any rule adopted under this Act, or the | ||||||
23 | permit or term or condition of the permit. | ||||||
24 | (g) All final orders imposing civil penalties under this | ||||||
25 | Section shall prescribe the time for payment of those | ||||||
26 | penalties. If any penalty is not paid within the time |
| |||||||
| |||||||
1 | prescribed, interest on penalty at the rate set forth in | ||||||
2 | subsection (a) of Section 1003 of the Illinois Income Tax Act, | ||||||
3 | shall be paid for the period from the date payment is due until | ||||||
4 | the date payment is received. However, if the time for payment | ||||||
5 | is stayed during the pendency of an appeal, interest shall not | ||||||
6 | accrue during stay.
| ||||||
7 | Section 1-102. Other relief.
| ||||||
8 | (a) Any person having an interest that is or may be | ||||||
9 | adversely affected may commence a civil action on his or her | ||||||
10 | own behalf to compel compliance with this Act against any | ||||||
11 | governmental instrumentality or agency which is alleged to be | ||||||
12 | in violation of the provisions of this Act or of any rule, | ||||||
13 | order, or permit issued under this Act, or against any other | ||||||
14 | person who is alleged to be in violation of this Act or of any | ||||||
15 | rule, order, or permit issued under this Act. No action may be | ||||||
16 | commenced under this subsection (a): (i) prior to 60 days after | ||||||
17 | the plaintiff has given notice in writing of the alleged | ||||||
18 | violation to the Department and to any alleged violator or (ii) | ||||||
19 | if the State has commenced and is diligently prosecuting a | ||||||
20 | civil action to require compliance with the provisions of this | ||||||
21 | Act, or any rule, order, or permit issued under this Act. | ||||||
22 | (b) Any person having an interest that is or may be | ||||||
23 | adversely affected may commence a civil action against the | ||||||
24 | Department on his or her own behalf to compel compliance with | ||||||
25 | this Act where there is alleged a failure of the Department to |
| |||||||
| |||||||
1 | perform any act or duty under this Act that is not | ||||||
2 | discretionary with the Department. No action may be commenced | ||||||
3 | under this subsection (b) prior to 60 days after the plaintiff | ||||||
4 | has given notice in writing of the action to the Department, | ||||||
5 | except that action may be brought immediately after the | ||||||
6 | notification in the case where the violation or order | ||||||
7 | complained of constitutes an imminent threat to the health or | ||||||
8 | safety of the plaintiff or would immediately affect a legal | ||||||
9 | interest of the plaintiff. | ||||||
10 | (c) The court, in issuing any final order in any action | ||||||
11 | brought under this Section, may award costs of litigation | ||||||
12 | (including attorney and expert witness fees) to any party, on | ||||||
13 | the basis of the importance of the proceeding and the | ||||||
14 | participation of the parties to the efficient and effective | ||||||
15 | enforcement of this Act. The court may, if a temporary | ||||||
16 | restraining order or preliminary injunction is sought, require | ||||||
17 | the filing of a bond or equivalent security in accordance with | ||||||
18 | Part 1 of Article XI of the Code of Civil Procedure. | ||||||
19 | (d) Any person who is injured in his or her person or | ||||||
20 | property through the violation by any operator of any rule, | ||||||
21 | order, or permit issued under this Act may bring an action for | ||||||
22 | damages (including reasonable attorney and expert witness | ||||||
23 | fees). Nothing in this subsection (d) shall affect any of the | ||||||
24 | rights established by or limits imposed under the Workers' | ||||||
25 | Compensation Act. | ||||||
26 | (e) Any action brought under this Section may be brought |
| |||||||
| |||||||
1 | only in the county in which the high volume horizontal | ||||||
2 | hydraulic fracturing operation complained of is located.
| ||||||
3 | (f) In any action under this Section, the Department shall | ||||||
4 | have an unconditional right to intervene. | ||||||
5 | (g) No existing civil or criminal remedy for any wrongful | ||||||
6 | action shall be excluded or impaired by this Act. | ||||||
7 | (h) Nothing in this Section shall restrict any right that | ||||||
8 | any person (or class of persons) may have under any statute or | ||||||
9 | common law to seek enforcement of any of the provisions of this | ||||||
10 | Act and the rules adopted under this Act, or to seek any other | ||||||
11 | relief (and including relief against the United States or the | ||||||
12 | Department).
| ||||||
13 | Section 1-105. Violations, complaints, and notice; | ||||||
14 | website. | ||||||
15 | The Department shall maintain a detailed database that is | ||||||
16 | readily accessible to the public on the Department's website. | ||||||
17 | The database shall show each violation found by the Department | ||||||
18 | regarding high volume horizontal hydraulic fracturing | ||||||
19 | operations and the associated well owners, operators, and | ||||||
20 | subcontractors. When the Department determines that any person | ||||||
21 | has violated this Act, the Department shall provide notice by | ||||||
22 | U.S. Postal Service certified mail, return receipt requested, | ||||||
23 | of the Department's determination to all persons required to | ||||||
24 | receive specific public notice under Section 1-40 of this Act | ||||||
25 | within 7 calendar days after the determination. The Department |
| |||||||
| |||||||
1 | shall also post the notice on the Department's website. The | ||||||
2 | notice shall include a detailed, plain language description of | ||||||
3 | the violation and a detailed, plain language description of all | ||||||
4 | known risks to public health, life, property, aquatic life, and | ||||||
5 | wildlife resulting from the violation. | ||||||
6 | Section 1-110. Public information; website. | ||||||
7 | (a) All information submitted to the Department under this | ||||||
8 | Act is deemed public information, except information deemed to | ||||||
9 | constitute a trade secret under Section 1-77 of this Act and | ||||||
10 | private information and personal information as defined in the | ||||||
11 | Freedom of Information Act. | ||||||
12 | (b) To provide the public and concerned citizens with a | ||||||
13 | centralized repository of information, the Department shall | ||||||
14 | create and maintain a comprehensive website dedicated to | ||||||
15 | providing information concerning high volume horizontal | ||||||
16 | hydraulic fracturing operations. The website shall contain, | ||||||
17 | assemble, and link the documents and information required by | ||||||
18 | this Act to be posted on the Department's or other agencies' | ||||||
19 | websites. The Department shall also create and maintain an | ||||||
20 | online searchable database that provides information related | ||||||
21 | to high volume horizontal hydraulic fracturing operations on | ||||||
22 | wells that, at a minimum, include, for each well it permits, | ||||||
23 | the identity of its operators, its waste disposal, its chemical | ||||||
24 | disclosure information, and any complaints or violations under | ||||||
25 | this Act. The website created under this Section shall allow |
| |||||||
| |||||||
1 | users to search for completion reports by well name and | ||||||
2 | location, dates of fracturing and drilling operations, | ||||||
3 | operator, and by chemical additives. | ||||||
4 | Section 1-120. Applicable federal, State, and local laws. | ||||||
5 | Compliance with this Act does not relieve responsibility for | ||||||
6 | compliance with the Illinois Oil and Gas Act, the Illinois | ||||||
7 | Environmental Protection Act, and other applicable federal, | ||||||
8 | State, and local laws. | ||||||
9 | Section 1-123. Application of water well laws. Nothing in | ||||||
10 | this Act shall be construed to affect the application of the | ||||||
11 | Illinois Water Well Construction Code, the Illinois Water Well | ||||||
12 | Pump Installation Code, the Water Well and Pump Installation | ||||||
13 | Contractor's License Act, or any rules adopted thereunder to | ||||||
14 | all water wells, closed loop wells, or monitoring wells, as | ||||||
15 | those terms are defined in Section 3 of the Illinois Water Well | ||||||
16 | Construction Code, that are located, drilled, constructed, or | ||||||
17 | modified in connection with activities regulated by this Act. | ||||||
18 | Section 1-125. Administrative review. All final | ||||||
19 | administrative decisions, including issuance or denial of a | ||||||
20 | permit, made by the Department under this Act are subject to | ||||||
21 | judicial review under the Administrative Review Law and its | ||||||
22 | rules. |
| |||||||
| |||||||
1 | Section 1-130. Rules. The Department shall have the | ||||||
2 | authority to adopt rules as may be necessary to accomplish the | ||||||
3 | purposes of this Act. Any and all rules adopted under this Act | ||||||
4 | by the Department are not subject to the review, consultation, | ||||||
5 | or advisement of the Oil and Gas Board. | ||||||
6 | Section 1-135. The Mines and Minerals Regulatory Fund. The | ||||||
7 | Mines and Minerals Regulatory Fund is created as a special fund | ||||||
8 | in the State treasury. All moneys required by this Act to be | ||||||
9 | deposited into the Fund shall be used by the Department to | ||||||
10 | administer and enforce this Act and otherwise support the | ||||||
11 | operations and programs of the Office of Mines and Minerals.
| ||||||
12 | Section 1-140. Severability. The provisions of this Act are | ||||||
13 | severable under Section 1.31 of the Statute on Statutes. | ||||||
14 | ARTICLE 2. | ||||||
15 | Section 2-5. Short title. This Act may be cited as the | ||||||
16 | "Illinois Hydraulic Fracturing Tax Act". | ||||||
17 | Section 2-10. Definitions. For the purposes of this Act, | ||||||
18 | unless the context otherwise requires: | ||||||
19 | "Barrel" for oil measurement means a barrel of 42 U.S. | ||||||
20 | gallons of 231 cubic inches per gallon, computed at a | ||||||
21 | temperature of 60 degrees Fahrenheit.
|
| |||||||
| |||||||
1 | "Construction" means any constructing, altering, | ||||||
2 | reconstructing, repairing, rehabilitating, refinishing, | ||||||
3 | refurbishing, remodeling, remediating, renovating, custom | ||||||
4 | fabricating, maintaining, landscaping, improving, drilling, | ||||||
5 | testing, moving, wrecking, painting, decorating, demolishing, | ||||||
6 | and adding to or subtracting from any building, structure, | ||||||
7 | highway, roadway, street, bridge, alley, sewer, ditch, water | ||||||
8 | works, parking facility, railroad, excavation or other | ||||||
9 | structure, project, development, real property or improvement, | ||||||
10 | or to do any part thereof, whether or not the performance of | ||||||
11 | the construction involves the addition to, or fabrication into, | ||||||
12 | any structure, project, development, real property or | ||||||
13 | improvement herein described performed or done on behalf of an | ||||||
14 | operator in connection with and at the location of a well site | ||||||
15 | subject to the tax imposed by this Act.
| ||||||
16 | "Construction worker" means a person performing | ||||||
17 | construction.
| ||||||
18 | "Department" means the Illinois Department of Revenue. | ||||||
19 | "Fracturing" or "hydraulic fracturing" means the | ||||||
20 | propagation of fractures in a rock layer, by a pressurized | ||||||
21 | fluid used to release petroleum or natural gas (including shale | ||||||
22 | gas, tight gas, and coal seam gas), for extraction. | ||||||
23 | "Gas" means natural gas taken from below the surface of the | ||||||
24 | earth or water in this State, regardless of whether the gas is | ||||||
25 | taken from a gas well or from a well also productive of oil or | ||||||
26 | any other product. |
| |||||||
| |||||||
1 | "General prevailing rate of hourly wages" has the meaning | ||||||
2 | ascribed to it in Section 2 of the Prevailing Wage Act, as | ||||||
3 | determined by the Director of the Department of Labor under | ||||||
4 | Section 9 of the Prevailing Wage Act for the county in which | ||||||
5 | the construction occurs.
| ||||||
6 | "Illinois construction worker" means a construction | ||||||
7 | worker, as defined in this Section, domiciled in Illinois for | ||||||
8 | 24 months prior to the date of the issuance of a high volume | ||||||
9 | horizontal hydraulic fracturing permit for the well site on | ||||||
10 | which the construction is performed.
| ||||||
11 | "Lease number" means the number assigned by the purchaser | ||||||
12 | to identify each production unit. | ||||||
13 | "Oil" means petroleum or other crude oil, condensate, | ||||||
14 | casinghead gasoline, or other mineral oil that is severed or | ||||||
15 | withdrawn from below the surface of the soil or water in this | ||||||
16 | State. | ||||||
17 | "Operator" means the person primarily responsible for the | ||||||
18 | management and operation of oil or gas productions from a | ||||||
19 | production unit. | ||||||
20 | "Person" means any natural individual, firm, partnership, | ||||||
21 | association, joint stock company, joint adventure, public or | ||||||
22 | private corporation, limited liability company, or a receiver, | ||||||
23 | executor, trustee, guardian, or other representative appointed | ||||||
24 | by order of any court. | ||||||
25 | "Producer" means any person owning, controlling, managing, | ||||||
26 | or leasing any oil or gas property or oil or gas well, and any |
| |||||||
| |||||||
1 | person who severs in any manner any oil or gas in this State, | ||||||
2 | and shall include any person owning any direct and beneficial | ||||||
3 | interest in any oil or gas produced, whether severed by such | ||||||
4 | person or some other person on their behalf, either by lease, | ||||||
5 | contract, or otherwise, including working interest owners, | ||||||
6 | overriding royalty owners, or royalty owners. | ||||||
7 | "Production unit" means a unit of property designated by | ||||||
8 | the Department of Natural Resources from which oil or gas is | ||||||
9 | severed.
| ||||||
10 | "Purchaser" means a person who is the first purchaser of a | ||||||
11 | product after severance from a production unit. | ||||||
12 | "Remove" or "removal" means the physical transportation of | ||||||
13 | oil or gas off of the production unit where severed; and if the | ||||||
14 | oil or gas is used on the premises where severed, or if the | ||||||
15 | manufacture or conversion of oil or gas into refined products | ||||||
16 | occurs on the premises where severed, oil or gas shall be | ||||||
17 | deemed to have been removed on the date such use, manufacture, | ||||||
18 | or conversion begins. | ||||||
19 | "Severed" or "severing" means: (1) the production of oil | ||||||
20 | through extraction or withdrawal of the same, whether such | ||||||
21 | extraction or withdrawal is by natural flow, mechanical flow, | ||||||
22 | forced flow, pumping, or any other means employed to get the | ||||||
23 | oil from below the surface of the soil or water and shall | ||||||
24 | include the withdrawal by any means whatsoever of oil upon | ||||||
25 | which the tax has not been paid, from any surface reservoir, | ||||||
26 | natural or artificial, or from a water surface; and (2) the |
| |||||||
| |||||||
1 | production of gas through the extraction or withdrawal of the | ||||||
2 | same by any means whatsoever, from below the surface of the | ||||||
3 | earth or water. | ||||||
4 | "Severance" means the taking of oil or gas from below the | ||||||
5 | surface of the soil or water in any manner whatsoever. | ||||||
6 | "Total workforce hours" means all hours worked by | ||||||
7 | construction workers on a well site, beginning on the date an | ||||||
8 | application for a permit to perform high volume horizontal | ||||||
9 | hydraulic fracturing operations at the well is filed under | ||||||
10 | Section 1-35 of the Hydraulic Fracturing Regulatory Act and | ||||||
11 | ending on the date of first production following initial | ||||||
12 | drilling or any reworking of the well. | ||||||
13 | "Value" means the sale price of oil or gas at the time of | ||||||
14 | removal of the oil or gas from the production unit and if oil | ||||||
15 | or gas is exchanged for something other than cash, or if no | ||||||
16 | sale occurs at the time of removal, or if the Department | ||||||
17 | determines that the relationship between the buyer and the | ||||||
18 | seller is such that the consideration paid, if any, is not | ||||||
19 | indicative of the true value or market price, then the | ||||||
20 | Department shall determine the value of the oil or gas subject | ||||||
21 | to tax based on the cash price paid to one or more producers | ||||||
22 | for the oil or gas or based on the cash price paid to producers | ||||||
23 | for like quality oil or gas in the vicinity of the production | ||||||
24 | unit at the time of the removal of the oil or gas from the | ||||||
25 | production unit.
| ||||||
26 | "Well site" has the meaning ascribed to the term in Section |
| |||||||
| |||||||
1 | 1-5 of the Hydraulic Fracturing Regulatory Act.
| ||||||
2 | "Working interest" means any interest in or any right to | ||||||
3 | the production of oil and gas, excluding royalty or overriding | ||||||
4 | royalty interests.
| ||||||
5 | Section 2-15. Tax imposed. | ||||||
6 | (a) For oil and gas removed on or after July 1, 2013, there | ||||||
7 | is hereby imposed a tax upon the severance and production of | ||||||
8 | oil or gas from a well on a production unit in this State | ||||||
9 | permitted, or required to be permitted, under the Illinois | ||||||
10 | Hydraulic Fracturing Regulatory Act, for sale, transport, | ||||||
11 | storage, profit, or commercial use. The tax shall be applied | ||||||
12 | equally to all portions of the value of each barrel of oil | ||||||
13 | severed and subject to such tax and to the value of the gas | ||||||
14 | severed and subject to such tax. For a period of 24 months from | ||||||
15 | the month in which oil or gas was first produced from the well, | ||||||
16 | the rate of tax shall be 3% of the value of the oil or gas | ||||||
17 | severed from the earth or water in this State. Thereafter, the | ||||||
18 | rate of the tax shall be as follows: | ||||||
19 | (1) For oil: | ||||||
20 | (A) where the average daily production from the | ||||||
21 | well during the month is less than 25 barrels, 3% of | ||||||
22 | the value of the oil severed from the earth or water; | ||||||
23 | (B) where the average daily production from the | ||||||
24 | well during the month is 25 or more barrels but less | ||||||
25 | than 50 barrels, 4% of the value of the oil severed |
| |||||||
| |||||||
1 | from the earth or water; | ||||||
2 | (C) where the average daily production from the | ||||||
3 | well during the month is 50 or more barrels but less | ||||||
4 | than 100 barrels, 5% of the value of the oil severed | ||||||
5 | from the earth or water; or | ||||||
6 | (D) where the average daily production from the | ||||||
7 | well during the month is 100 or more barrels, 6% of the | ||||||
8 | value of the oil severed from the earth or water. | ||||||
9 | (2) For gas, 6% of the value of the gas severed from | ||||||
10 | the earth or water. | ||||||
11 | If a well is required to be permitted under the Illinois | ||||||
12 | Hydraulic Fracturing Regulatory Act, the tax imposed by this | ||||||
13 | Section applies, whether or not a permit was obtained. | ||||||
14 | (b) Oil produced from a well whose average daily production | ||||||
15 | is 15 barrels or less for the 12-month period immediately | ||||||
16 | preceding the production is exempt from the tax imposed by this | ||||||
17 | Act.
| ||||||
18 | (c) For the purposes of the tax imposed by this Act the | ||||||
19 | amount of oil produced shall be measured or determined, in the | ||||||
20 | case of oil, by tank tables, without deduction for overage or | ||||||
21 | losses in handling. Allowance for any reasonable and bona fide | ||||||
22 | deduction for basic sediment and water, and for correction of | ||||||
23 | temperature to 60 degrees Fahrenheit will be allowed. For the | ||||||
24 | purposes of the tax imposed by this Act the amount of gas | ||||||
25 | produced shall be measured or determined, by meter readings | ||||||
26 | showing 100% of the full volume expressed in cubic feet at a |
| |||||||
| |||||||
1 | standard base and flowing temperature of 60 degrees Fahrenheit, | ||||||
2 | and at the absolute pressure at which the gas is sold and | ||||||
3 | purchased. Correction shall be made for pressure according to | ||||||
4 | Boyle's law, and used for specific gravity according to the | ||||||
5 | gravity at which the gas is sold and purchased. | ||||||
6 | (d) The following severance and production of gas shall be | ||||||
7 | exempt from the tax imposed by this Act: gas injected into the | ||||||
8 | earth for the purpose of lifting oil, recycling, or | ||||||
9 | repressuring; gas used for fuel in connection with the | ||||||
10 | operation and development for, or production of, oil or gas in | ||||||
11 | the production unit where severed; and gas lawfully vented or | ||||||
12 | flared; gas inadvertently lost on the production unit by reason | ||||||
13 | of leaks, blowouts, or other accidental losses. | ||||||
14 | (e) All oil and gas removed from the premises where severed | ||||||
15 | is subject to the tax imposed by this Act unless exempt under | ||||||
16 | the terms of this Act.
| ||||||
17 | (f) The liability for the tax accrues at the time the oil | ||||||
18 | or gas is removed from the production unit.
| ||||||
19 | Section 2-17. Local Workforce Tax Rate Reduction. | ||||||
20 | (a) The rate of tax imposed on working interest owners of a | ||||||
21 | well under Section 2-15 of this Act shall be reduced by 0.25% | ||||||
22 | for the life of the well when a minimum of 50% of the total | ||||||
23 | workforce hours on the well site are performed by Illinois | ||||||
24 | construction workers being paid wages equal to or exceeding the | ||||||
25 | general prevailing rate of hourly wages.
|
| |||||||
| |||||||
1 | (b) When more than one well is drilled on a well site, | ||||||
2 | total workforce hours shall be determined on a well-by-well | ||||||
3 | basis.
| ||||||
4 | (c) Any operator that intends to claim the reduction | ||||||
5 | provided for in this Section on his or her behalf, or on the | ||||||
6 | behalf of the working interest owners, shall be responsible for | ||||||
7 | obtaining from all construction contractors working on a well | ||||||
8 | site, records to document the claim for the reduction in tax | ||||||
9 | rate. Operators shall, at a minimum, obtain from construction | ||||||
10 | contractors, in writing, the total number of construction | ||||||
11 | workers that performed work under the contract, the number of | ||||||
12 | Illinois construction workers that performed work under the | ||||||
13 | contract, whether oral or written, between the operator and the | ||||||
14 | construction contractor, the hours worked by each construction | ||||||
15 | worker and the wage paid to each construction worker for the | ||||||
16 | hours of work performed on the well site. The operator shall | ||||||
17 | obtain and retain any other records the Department determines | ||||||
18 | are necessary to verify a claim for a reduction in the tax. The | ||||||
19 | operator shall make the records available to the Department | ||||||
20 | upon request.
| ||||||
21 | For the purposes of this Section, each construction | ||||||
22 | contractor, upon written request from the operator, shall | ||||||
23 | retain the following records: each worker's name, address, and | ||||||
24 | telephone number, if available, years of residency in Illinois, | ||||||
25 | the type of work the worker performs, the hourly wages paid | ||||||
26 | each worker, and the number of hours worked by each worker for |
| |||||||
| |||||||
1 | the term of the contract. The construction contractor shall | ||||||
2 | retain any other records the Department determines are | ||||||
3 | necessary to verify a claim for a reduction in the tax. The | ||||||
4 | construction contractor shall make the records available to the | ||||||
5 | operator and Department upon request. The operator and | ||||||
6 | construction contractors shall retain the records for 3 years.
| ||||||
7 | No later than the 6 months after the date of the first | ||||||
8 | purchase of oil or gas from a well, the operator shall file | ||||||
9 | with the Department, in the form and manner required by the | ||||||
10 | Department, a report and documentation to support that the | ||||||
11 | working interest owners qualify for the reduction in the rate | ||||||
12 | of tax provided for in this Section. The report shall be signed | ||||||
13 | by the operator, or an officer, employee, or agent of the | ||||||
14 | contractor, and state under oath that he or she has examined | ||||||
15 | the report and documentation and the report and documentation | ||||||
16 | are true and accurate. The Department shall keep the records | ||||||
17 | submitted in accordance with this subsection for a period of | ||||||
18 | not less than 3 years from the date of filing.
| ||||||
19 | (d) The Department shall notify the first purchaser and the | ||||||
20 | operator when the working interest owners qualify for a | ||||||
21 | reduction in the tax under this Section and state the amount of | ||||||
22 | the reduction. The reduction shall be effective the date of | ||||||
23 | first production. The first purchaser or operator may take a | ||||||
24 | credit for any retroactive reduction in the tax rate on a | ||||||
25 | return filed under Sections 2-45 and 2-50 of this Act.
| ||||||
26 | (e) Reports shall be filed on forms furnished and |
| |||||||
| |||||||
1 | prescribed by the Department and shall contain any other | ||||||
2 | information as the Department may reasonably require.
| ||||||
3 | Section 2-20. Taxable value; method of determining. The | ||||||
4 | Department may determine the value of products severed from a | ||||||
5 | production unit when the operator and purchaser are affiliated | ||||||
6 | persons, when the sale and purchase of products is not an arm's | ||||||
7 | length transaction, or when products are severed and removed | ||||||
8 | from a production unit and a value is not established for those | ||||||
9 | products. The value determined by the Department shall be | ||||||
10 | commensurate with the actual price received for products of | ||||||
11 | like quality, character, and use which are severed in the same | ||||||
12 | field or area. If there are no sales of products of like | ||||||
13 | quality, character, and use severed in the same field or area, | ||||||
14 | then the Department shall establish a reasonable value based on | ||||||
15 | sales of products of like quality, character, and use which are | ||||||
16 | severed in other areas of the State, taking into consideration | ||||||
17 | any other relevant factors. | ||||||
18 | Section 2-25. Withholding of tax. Any purchaser who makes | ||||||
19 | a monetary payment to a producer for his or her portion of the | ||||||
20 | value of products from a production unit shall withhold from | ||||||
21 | such payment the amount of tax due from the producer. Any | ||||||
22 | purchaser who pays any tax due from a producer shall be | ||||||
23 | entitled to reimbursement from the producer for the tax so paid | ||||||
24 | and may take credit for such amount from any monetary payment |
| |||||||
| |||||||
1 | to the producer for the value of products. To the extent that a | ||||||
2 | purchaser required to collect the tax imposed by this Act has | ||||||
3 | actually collected that tax, such tax is held in trust for the | ||||||
4 | benefit of the State of Illinois. | ||||||
5 | Section 2-30. Payment and collection of tax. | ||||||
6 | (a) For oil and gas removed on or after July 1, 2013, the | ||||||
7 | tax incurred under this Act shall be due and payable on or | ||||||
8 | before the last day of the month following the end of the month | ||||||
9 | in which the oil or gas is removed from the production unit. | ||||||
10 | The tax is upon the producers of such oil or gas in the | ||||||
11 | proportion to their respective beneficial interests at the time | ||||||
12 | of severance. The first purchaser of any oil or gas sold shall | ||||||
13 | collect the amount of the tax due from the producers by | ||||||
14 | deducting and withholding such amount from any payments made by | ||||||
15 | such purchaser to the producers and shall remit the tax in this | ||||||
16 | Act. | ||||||
17 | In the event the tax shall be withheld by a purchaser from | ||||||
18 | payments due a producer and such purchaser fails to make | ||||||
19 | payment of the tax to the State as required herein, the first | ||||||
20 | purchaser shall be liable for the tax. However, in the event a | ||||||
21 | first purchaser fails to pay the tax withheld from a producer's | ||||||
22 | payment, the producer's interest remains subject to any lien | ||||||
23 | filed pursuant to subsection (c) of this Section. A producer | ||||||
24 | shall be entitled to bring an action against such purchaser to | ||||||
25 | recover the amount of tax so withheld together with penalties |
| |||||||
| |||||||
1 | and interest which may have accrued by failure to make such | ||||||
2 | payment. A producer shall be entitled to all attorney fees and | ||||||
3 | court costs incurred in such action. To the extent that a | ||||||
4 | producer liable for the tax imposed by this Act collects the | ||||||
5 | tax, and any penalties and interest, from a purchaser, such | ||||||
6 | tax, penalties, and interest are held in trust by the producer | ||||||
7 | for the benefit of the State of Illinois. | ||||||
8 | (b) For all production units a first purchaser begins to | ||||||
9 | purchase oil or gas from on or after July 1, 2013, the first | ||||||
10 | purchaser is required to withhold and remit the tax imposed by | ||||||
11 | this Act to the Department from the oil and gas purchased from | ||||||
12 | the production unit unless the first purchaser obtains from the | ||||||
13 | operator an exemption certificate signed by the operator | ||||||
14 | stating that the production unit is not subject to the tax | ||||||
15 | imposed by this Act. The exemption certificate must include the | ||||||
16 | following information: | ||||||
17 | (1) name and address of the operator; | ||||||
18 | (2) name of the production unit; | ||||||
19 | (3) number assigned to the production unit by the first | ||||||
20 | purchaser, if available; | ||||||
21 | (4) legal description of the production unit; and | ||||||
22 | (5) a statement by the operator that the production | ||||||
23 | unit is exempt from the tax imposed by the Illinois | ||||||
24 | Hydraulic Fracturing Tax Act. | ||||||
25 | If a first purchaser obtains an exemption certificate that | ||||||
26 | contains the required information and reasonably relies on the |
| |||||||
| |||||||
1 | exemption certificate and it is subsequently determined by the | ||||||
2 | Department that the production unit is subject to the tax | ||||||
3 | imposed by this Act, the Department will collect any tax that | ||||||
4 | is due from the operator and producers, and the first purchaser | ||||||
5 | is relieved of any liability. | ||||||
6 | (c) Notwithstanding subsection (a) of this Section, the tax | ||||||
7 | is a lien on the oil and gas from the time of severance from the | ||||||
8 | land or under the water until the tax and all penalties and | ||||||
9 | interest are fully paid, and the State shall have a lien on all | ||||||
10 | the oil or gas severed from the production unit in this State | ||||||
11 | in the hands of the operator, any producer or the first or any | ||||||
12 | subsequent purchaser thereof to secure the payment of the tax. | ||||||
13 | If a lien is filed by the Department, the purchaser shall | ||||||
14 | withhold from producers or operators the amount of tax, penalty | ||||||
15 | and interest identified in the lien. | ||||||
16 | Section 2-35. Registration of purchasers. A person who | ||||||
17 | engages in business as a purchaser of oil or gas in this State | ||||||
18 | shall register with the Department. Application for a | ||||||
19 | certificate of registration shall be made to the Department | ||||||
20 | upon forms furnished by the Department and shall contain any | ||||||
21 | reasonable information the Department may require. Upon | ||||||
22 | receipt of the application for a certificate of registration in | ||||||
23 | proper form, the Department shall issue to the applicant a | ||||||
24 | certificate of registration. |
| |||||||
| |||||||
1 | Section 2-40. Inspection of records by the Department; | ||||||
2 | subpoena power, contempt. The Department shall have the power | ||||||
3 | to require any operator, producer, transporter, or person | ||||||
4 | purchasing any oil or gas severed from the earth or water to | ||||||
5 | furnish any additional information deemed to be necessary for | ||||||
6 | the purpose of computing the amount of the tax, and for such | ||||||
7 | purpose to examine the meter and other charts, books, records, | ||||||
8 | and all files of such person, and for such purpose the | ||||||
9 | Department shall have the power to issue subpoenas and examine | ||||||
10 | witnesses under oath, and if any witness shall fail or refuse | ||||||
11 | to appear at the request of the director, or refuses access to | ||||||
12 | books, records, and files, the circuit court of the proper | ||||||
13 | county, or the judge thereof, on application of the Department, | ||||||
14 | shall compel obedience by proceedings for contempt, as in the | ||||||
15 | case of disobedience of the requirements of a subpoena issued | ||||||
16 | from such court or a refusal to testify therein. | ||||||
17 | Section 2-45. Purchaser's return and tax remittance. Each | ||||||
18 | purchaser shall make a return to the Department showing the | ||||||
19 | quantity of oil or gas purchased during the month for which the | ||||||
20 | return is filed, the price paid therefore, total value, the | ||||||
21 | name and address of the operator or other person from whom the | ||||||
22 | same was purchased, a description of the production unit in the | ||||||
23 | manner prescribed by the Department from which such oil or gas | ||||||
24 | was severed and the amount of tax due from each production unit | ||||||
25 | for each calendar month. All taxes due, or to be remitted, by |
| |||||||
| |||||||
1 | the purchaser shall accompany this return. The return shall be | ||||||
2 | filed on or before the last day of the month after the calendar | ||||||
3 | month for which the return is required. The Department may | ||||||
4 | require any additional report or information it may deem | ||||||
5 | necessary for the proper administration of this Act. | ||||||
6 | Such returns shall be filed electronically in the manner | ||||||
7 | prescribed by the Department. Purchasers shall make all | ||||||
8 | payments of that tax to the Department by electronic funds | ||||||
9 | transfer unless, as provided by rule, the Department grants an | ||||||
10 | exception upon petition of a purchaser. Purchasers' returns | ||||||
11 | must be accompanied by appropriate computer generated magnetic | ||||||
12 | media supporting schedule data in the format required by the | ||||||
13 | Department, unless, as provided by rule, the Department grants | ||||||
14 | an exception upon petition of a purchaser. | ||||||
15 | Section 2-50. Operator returns; payment of tax. | ||||||
16 | (a) If, on or after July 1, 2013, oil or gas is transported | ||||||
17 | off the production unit where severed by the operator, used on | ||||||
18 | the production unit where severed, or if the manufacture and | ||||||
19 | conversion of oil and gas into refined products occurs on the | ||||||
20 | production unit where severed, the operator is responsible for | ||||||
21 | remitting the tax imposed under subsections (a) of Section 15, | ||||||
22 | on or before the last day of the month following the end of the | ||||||
23 | calendar month in which the oil and gas is removed from the | ||||||
24 | production unit, and such payment shall be accompanied by a | ||||||
25 | return to the Department showing the gross quantity of oil or |
| |||||||
| |||||||
1 | gas removed during the month for which the return is filed, the | ||||||
2 | price paid therefore, and if no price is paid therefore, the | ||||||
3 | value of the oil and gas, a description of the production unit | ||||||
4 | from which such oil or gas was severed, and the amount of tax. | ||||||
5 | The Department may require any additional information it may | ||||||
6 | deem necessary for the proper administration of this Act. | ||||||
7 | (b) Operators shall file all returns electronically in the | ||||||
8 | manner prescribed by the Department unless, as provided by | ||||||
9 | rule, the Department grants an exception upon petition of an | ||||||
10 | operator. Operators shall make all payments of that tax to the | ||||||
11 | Department by electronic funds transfer unless, as provided by | ||||||
12 | rule, the Department grants an exception upon petition of an | ||||||
13 | operator. Operators' returns must be accompanied by | ||||||
14 | appropriate computer generated magnetic media supporting | ||||||
15 | schedule data in the format required by the Department, unless, | ||||||
16 | as provided by rule, the Department grants an exception upon | ||||||
17 | petition of a purchaser. | ||||||
18 | (c) Any operator who makes a monetary payment to a producer | ||||||
19 | for his or her portion of the value of products from a | ||||||
20 | production unit shall withhold from such payment the amount of | ||||||
21 | tax due from the producer. Any operator who pays any tax due | ||||||
22 | from a producer shall be entitled to reimbursement from the | ||||||
23 | producer for the tax so paid and may take credit for such | ||||||
24 | amount from any monetary payment to the producer for the value | ||||||
25 | of products. To the extent that an operator required to collect | ||||||
26 | the tax imposed by this Act has actually collected that tax, |
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1 | such tax is held in trust for the benefit of the State of | ||||||
2 | Illinois. | ||||||
3 | (d) In the event the operator fails to make payment of the | ||||||
4 | tax to the State as required herein, the operator shall be | ||||||
5 | liable for the tax. A producer shall be entitled to bring an | ||||||
6 | action against such operator to recover the amount of tax so | ||||||
7 | withheld together with penalties and interest which may have | ||||||
8 | accrued by failure to make such payment. A producer shall be | ||||||
9 | entitled to all attorney fees and court costs incurred in such | ||||||
10 | action. To the extent that a producer liable for the tax | ||||||
11 | imposed by this Act collects the tax, and any penalties and | ||||||
12 | interest, from an operator, such tax, penalties, and interest | ||||||
13 | are held in trust by the producer for the benefit of the State | ||||||
14 | of Illinois. | ||||||
15 | (e) When the title to any oil or gas severed from the earth | ||||||
16 | or water is in dispute and the operator of such oil or gas is | ||||||
17 | withholding payments on account of litigation, or for any other | ||||||
18 | reason, such operator is hereby authorized, empowered and | ||||||
19 | required to deduct from the gross amount thus held the amount | ||||||
20 | of the tax imposed and to make remittance thereof to the | ||||||
21 | Department as provided in this Section. | ||||||
22 | (f) An operator required to file a return and pay the tax | ||||||
23 | under this Section shall register with the Department. | ||||||
24 | Application for a certificate of registration shall be made to | ||||||
25 | the Department upon forms furnished by the Department and shall | ||||||
26 | contain any reasonable information the Department may require. |
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1 | Upon receipt of the application for a certificate of | ||||||
2 | registration in proper form, the Department shall issue to the | ||||||
3 | applicant a certificate of registration. | ||||||
4 | (g) If oil or gas is transported off the production unit | ||||||
5 | where severed by the operator and sold to a purchaser or | ||||||
6 | refiner, the State shall have a lien on all the oil or gas | ||||||
7 | severed from the production unit in this State in the hands of | ||||||
8 | the operator, the first or any subsequent purchaser thereof, or | ||||||
9 | refiner to secure the payment of the tax. If a lien is filed by | ||||||
10 | the Department, the purchaser or refiner shall withhold from | ||||||
11 | the operator the amount of tax, penalty and interest identified | ||||||
12 | in the lien. | ||||||
13 | Section 2-55. Tax withholding and remittance when title to | ||||||
14 | minerals disputed. When the title to any oil or gas severed | ||||||
15 | from the earth or water is in dispute and the purchaser of such | ||||||
16 | oil or gas is withholding payments on account of litigation, or | ||||||
17 | for any other reason, such purchaser is hereby authorized, | ||||||
18 | empowered and required to deduct from the gross amount thus | ||||||
19 | held the amount of the tax imposed and to make remittance | ||||||
20 | thereof to the Department as provided in this Act. | ||||||
21 | Section 2-60. Transporters. When requested by the | ||||||
22 | Department, all transporters of oil or gas out of, within or | ||||||
23 | across the State of Illinois shall be required to furnish the | ||||||
24 | Department such information relative to the transportation of |
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1 | such oil or gas as the Department may require. The Department | ||||||
2 | shall have authority to inspect bills of lading, waybills, | ||||||
3 | meter, or other charts, documents, books and records as may | ||||||
4 | relate to the transportation of oil or gas in the hands of each | ||||||
5 | transporter. The Department shall further be empowered to | ||||||
6 | demand the production of such bills of lading, waybills, | ||||||
7 | charts, documents, books, and records relating to the | ||||||
8 | transportation of oil or gas at any point in the State of | ||||||
9 | Illinois. | ||||||
10 | Section 2-65. Rulemaking. The Department is hereby | ||||||
11 | authorized to adopt any rules as may be necessary to administer | ||||||
12 | and enforce the provisions of this Act. | ||||||
13 | Section 2-70. Incorporation by reference. All of the | ||||||
14 | provisions of Sections 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5j, 6, | ||||||
15 | 6a, 6b, 6c, 7, 8, 9, 10, 11, 11a, 12, and 13 of the "Retailers' | ||||||
16 | Occupation Tax Act" which are not inconsistent with this Act, | ||||||
17 | and all provisions of the Uniform Penalty and Interest Act | ||||||
18 | shall apply, as far as practicable, to the subject matter of | ||||||
19 | this Act to the same extent as if such provisions were included | ||||||
20 | herein. | ||||||
21 | Section 2-75. Distribution of proceeds. All moneys | ||||||
22 | received by the Department under this Act shall be paid into | ||||||
23 | the General Revenue Fund in the State treasury.
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1 | ARTICLE 3. | ||||||
2 | Section 3-150. The State Finance Act is amended by adding | ||||||
3 | Section 5.826 as follows: | ||||||
4 | (30 ILCS 105/5.826 new) | ||||||
5 | Sec. 5.826. The Mines and Minerals Regulatory Fund. | ||||||
6 | ARTICLE 9.
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7 | Section 99-999. Effective date. This Act takes effect upon | ||||||
8 | becoming law.
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