Illinois General Assembly - Full Text of SB3483
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Full Text of SB3483  98th General Assembly

SB3483 98TH GENERAL ASSEMBLY

  
  

 


 
98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
SB3483

 

Introduced 2/14/2014, by Sen. Ira I. Silverstein

 

SYNOPSIS AS INTRODUCED:
 
225 ILCS 732/1-5
225 ILCS 732/1-30
225 ILCS 732/1-35
225 ILCS 732/1-40
225 ILCS 732/1-55

    Amends the Hydraulic Fracturing Regulatory Act. Adds regulation of horizontal drilling with fracturing operations to the Act. Defines "owner of real property" and deletes the definition of "landowner". Requires high volume horizontal hydraulic fracturing operations or horizontal drilling with fracturing operations to obtain the consent of all the owners of real property on which, under which, and through which a vertical or horizontal wellbore will be drilled, except where an interest in a parcel has been divided, in which case consent by those holding more than 50% of that interest shall be sufficient. Requires applications under the Act to submit the proposed subsurface location of any horizontal wellbore, the names and addresses of all owners of the surface under which a horizontal wellbore is planned, the names and addresses of all owners of the surface within 500 feet of an imaginary line on the surface directly over the subsurface trajectory of any horizontal wellbore, and the names and addresses of all owners of right to the subsurface through which a vertical or horizontal wellbore is planned. Adds notice requirements. Provides that when any change is made from the planned course of a horizontal wellbore and the change involves drilling on, under, or through real property that was not identified on the original permit application or for which notice was not given or consent not obtained and shown, the change shall be considered a significant deviation from the terms of the original application and permit approval shall not proceed until notice has been given and consent has been obtained and shown to the Department of Natural Resources' satisfaction. Makes other changes.


LRB098 19589 MGM 54781 b

 

 

A BILL FOR

 

SB3483LRB098 19589 MGM 54781 b

1    AN ACT concerning regulation.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Hydraulic Fracturing Regulatory Act is
5amended by changing Sections 1-5, 1-30, 1-35, 1-40, and 1-55 as
6follows:
 
7    (225 ILCS 732/1-5)
8    Sec. 1-5. Definitions. For the purposes of this Act, unless
9the context otherwise requires:
10    "Agency" means the Illinois Environmental Protection
11Agency.
12    "Aquatic life" means all fish, reptiles, amphibians,
13crayfish, and mussels.
14    "Aquifer" means saturated (with groundwater) soils and
15geologic materials that are sufficiently permeable to readily
16yield economically useful quantities (at least 70 gallons per
17minute) of fresh water to wells, springs, or streams under
18ordinary hydraulic gradients. "Aquifer" is limited to aquifers
19identified as major sand and gravel aquifers in the Illinois
20State Water Survey's Illinois Community Water Supply Wells map,
21Map Series 2006-01.
22    "Base fluid" means the continuous phase fluid type,
23including, but not limited to, water used in a high volume

 

 

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1horizontal hydraulic fracturing operation or horizontal
2drilling with fracturing operations.
3    "BTEX" means benzene, toluene, ethylbenzene, and xylene.
4    "Chemical" means any element, chemical compound, or
5mixture of elements or compounds that has its own specific name
6or identity, such as a Chemical Abstracts Service number,
7regardless of whether the chemical is subject to the
8requirements of paragraph (2) of subsection (g) of 29 Code of
9Federal Regulations §1910.1200.
10    "Chemical Abstracts Service" means the division of the
11American Chemical Society that is the globally recognized
12authority for information on chemical substances.
13    "Chemical Abstracts Service number" or "CAS number" means
14the unique identification number assigned to a chemical by the
15Chemical Abstracts Service.
16    "Completion combustion device" means any ignition device,
17installed horizontally or vertically, used in exploration and
18production operations to combust otherwise vented emissions.
19    "Delineation well" means a well drilled in order to
20determine the boundary of a field or producing reservoir.
21    "Department" means the Illinois Department of Natural
22Resources.
23    "Diesel" means a substance having any one of the following
24Chemical Abstracts Service Registry numbers: 68334-30-5;
2568476-34-6; 68476-30-2; 68476-31-3; 8008-20-6; or 68410-00-4.
26"Diesel" includes any additional substances regulated by the

 

 

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1United States Environmental Protection Agency as diesel fuel
2used in hydraulic fracturing or horizontal drilling with
3fracturing activities under the federal Safe Drinking Water
4Act.
5    "Director" means the Director of Natural Resources.
6    "Enhanced oil recovery operation" means any secondary or
7tertiary recovery method used in an effort to recover
8hydrocarbons from a pool by injection of fluids, gases or other
9substances to maintain, restore, or augment natural reservoir
10energy, or by introducing gases, chemicals, other substances,
11or heat, or by in-situ combustion, or by any combination
12thereof.
13    "Flare" means a thermal oxidation system using an open,
14enclosed, or semi-enclosed flame. "Flare" does not include
15completion combustion devices as defined in this Section.
16    "Flowback period" means the process of allowing fluids to
17flow from a well following a treatment, either in preparation
18for a subsequent phase of treatment or in preparation for
19cleanup and returning the well to production. "Flowback period"
20begins when the material the hydraulic fracturing fluid returns
21to the surface following hydraulic fracturing or
22re-fracturing. "Flowback period" ends with either well shut in
23or when the well is producing continuously to the flow line or
24to a storage vessel for collection, whichever occurs first.
25    "Fresh water" means surface and subsurface water in its
26natural state that is suitable for drinking water for human

 

 

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1consumption, domestic livestock, irrigation, industrial,
2municipal and recreational purposes, that is capable of
3supporting aquatic life, and contains less than 10,000 ppm
4total dissolved solids.
5    "Gas" means all natural gas, including casinghead gas, and
6all other natural hydrocarbons not defined as oil.
7    "Groundwater" means any water below the land surface that
8is within the saturated zone or geologic materials where the
9fluid pressure in the pore space is equal to or greater than
10atmospheric pressure.
11    "Health professional" means a physician, physician
12assistant, nurse practitioner, a registered professional
13nurse, emergency medical technician, or other individual
14appropriately licensed or registered to provide health care
15services.
16    "High volume horizontal hydraulic fracturing operations"
17means all stages of a stimulation treatment of a horizontal
18well as defined by this Act by the pressurized application of
19more than 80,000 gallons per stage or more than 300,000 gallons
20total of hydraulic fracturing fluid and proppant to initiate or
21propagate fractures in a geologic formation to enhance
22extraction or production of oil or gas.
23    "High volume horizontal hydraulic fracturing permit" means
24the permit issued by the Department under this Act allowing
25high volume horizontal hydraulic fracturing operations to
26occur at a well site.

 

 

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1    "High volume horizontal hydraulic fracturing treatment"
2shall have the same definition as "High volume horizontal
3hydraulic fracturing operations".
4    "Horizontal well" means a well with a wellbore drilled
5laterally at an angle of at least 80 degrees to the vertical
6and with a horizontal projection exceeding 100 feet measured
7from the initial point of penetration into the productive
8formation through the terminus of the lateral in the same
9common source of hydrocarbon supply.
10    "Hydraulic fracturing additive" means any chemical
11substance or combination of chemicals, including, but not
12limited to, any chemical or proppant that is added to a base
13fluid for the purposes of preparing a hydraulic fracturing
14fluid for a high volume horizontal hydraulic fracturing
15operation or horizontal drilling with fracturing operations.
16    "Hydraulic fracturing flowback" means all hydraulic
17fracturing fluid and other fluids that return to the surface
18after a stage of high volume horizontal hydraulic fracturing
19operations has been completed and prior to the well being
20placed in production.
21    "Hydraulic fracturing fluid" means the mixture of the base
22fluid and all the hydraulic fracturing additives, used to
23perform high volume horizontal hydraulic fracturing or
24horizontal drilling with fracturing operations.
25    "Hydraulic fracturing string" means any pipe or casing
26string used for the transport of hydraulic fracturing fluids

 

 

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1during the conduct of the high volume horizontal hydraulic
2fracturing operations or horizontal drilling with fracturing
3operations.
4    "Intake" means a pipe or other means to withdraw raw water
5from a water source.
6    "Landowner" means the legal title holder or owner of real
7property and includes an owner of an undivided interest, a life
8tenant, a remainderman, a public or private corporation, a
9trustee under an active trust, and the holder of the beneficial
10interest under a land trust. "Landowner" does not include a
11mortgagee, a trustee under a trust deed in the nature of a
12mortgage, a lien holder, or a lessee.
13    "Low pressure well" means a well with reservoir pressure
14and vertical well depth such that 0.445 times the reservoir
15pressure (in psia) minus 0.038 times the vertical well depth
16(in feet) minus 67.578 psia is less than the flow line pressure
17at the sales meter.
18    "Nature preserve" shall have the same meaning as provided
19in Section 3.11 of the Illinois Natural Areas Preservation Act.
20    "Oil" means natural crude oil or petroleum and other
21hydrocarbons, regardless of gravity, which are produced at the
22well in liquid form by ordinary production methods or by the
23use of an oil and gas separator and which are not the result of
24condensation of gas after it leaves the underground reservoir.
25    "Operator" means the individual or entity controlling the
26right to drill or produce a horizontal well in accordance with

 

 

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1the requirements of the Illinois Oil and Gas Act.
2    "Owner", with reference to the ownership of a well, shall
3have the same meaning as provided in Section 1 of the Illinois
4Oil and Gas Act.
5    "Owner of real property" means the legal title holder or
6owner of real property and includes an owner of an undivided
7interest, an owner of a divided interest, a life tenant, a
8remainderman, a public or private corporation, a trustee under
9an active trust, and the holder of the beneficial interest
10under a land trust. "Owner of real property" includes those who
11own surface rights, those who own subsurface rights, and those
12who own mineral rights. "Owner of real property" does not
13include a mortgagee, a trustee under a trust deed in the nature
14of a mortgage, a lien holder, or a lessee.
15    "Perennial stream" means a stream that has continuous flow
16in its stream bed during all of the calendar year.
17    "Permit" means a high volume horizontal hydraulic
18fracturing or horizontal drilling with fracturing permit.
19    "Permittee" means a person holding a high volume horizontal
20hydraulic fracturing or horizontal drilling with fracturing
21permit under this Act.
22    "Person" means any individual, partnership,
23co-partnership, firm, company, limited liability company,
24corporation, association, joint stock company, trust, estate,
25political subdivision, state agency, or any other legal entity
26or their legal representative, agent, or assigns.

 

 

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

 

 

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1flowback.
2    "Proppant" means sand or any natural or man-made material
3that is used during high volume horizontal hydraulic fracturing
4operations or horizontal drilling with fracturing operations
5to prop open the artificially created or enhanced fractures.
6    "Public water supply" means all mains, pipes, and
7structures through which water is obtained and distributed to
8the public, including wells and well structures, intakes and
9cribs, pumping stations, treatment plants, reservoirs, and
10storage tanks and appurtenances, collectively or severally,
11actually used or intended for use for the purpose of furnishing
12water for drinking or general domestic use, and which serves at
13least 15 service connections or which regularly serves at least
1425 persons at least 60 days per year.
15    "Register of Land and Water Reserves" means the list of
16areas registered in accordance with Section 16 of the Illinois
17Natural Areas Preservation Act and Part 4010 of Title 17 of the
18Illinois Administrative Code.
19    "Release" means any spilling, leaking, pumping, pouring,
20emitting, emptying, discharging, injecting, escaping,
21leaching, dumping, or disposing into the environment.
22    "Serious violation" means any violation set forth in 62
23Ill. Adm. Code 240.140(c).
24    "Service connection" means the opening, including all
25fittings and appurtenances, at the water main through which
26water is supplied to the user.

 

 

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

 

 

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1    "Well site" means surface areas, including the well,
2occupied by all equipment or facilities necessary for or
3incidental to high volume horizontal hydraulic fracturing
4operations, drilling, production, or plugging a well.
5    "Wildcat well" means a well outside known fields or the
6first well drilled in an oil or gas field where no other oil
7and gas production exists.
8    "Wildlife" means any bird or mammal that are by nature wild
9by way of distinction from those that are naturally tame and
10are ordinarily living unconfined in a state of nature without
11the care of man.
12(Source: P.A. 98-22, eff. 6-17-13.)
 
13    (225 ILCS 732/1-30)
14    Sec. 1-30. High volume horizontal hydraulic fracturing or
15horizontal drilling with fracturing operations permit
16required.
17    (a) Notwithstanding any other provision of law, a person
18may not drill, deepen, or convert a horizontal well where high
19volume horizontal hydraulic fracturing operations or
20horizontal drilling with fracturing operations are planned or
21occurring or convert a vertical well into a horizontal well
22where high volume horizontal hydraulic fracturing operations
23or horizontal drilling with fracturing operations are planned
24in this State, unless:
25        (1) the person has obtained the consent of all the

 

 

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1    owners of real property on which, under which, and through
2    which a vertical or horizontal wellbore will be drilled,
3    except when an interest in a parcel has been divided, in
4    which case consent by those holding more than 50% of that
5    interest shall be sufficient;
6        (2) the person has been issued a permit by the
7    Department under this Act; and
8        (3) the person has obtained all applicable
9    authorizations required by the Illinois Oil and Gas Act.
10    (b) If multiple wells are to be stimulated using high
11volume horizontal hydraulic fracturing operations or
12horizontal drilling with fracturing operations from a single
13well site, then a separate permit shall be obtained for each
14well at the site.
15(Source: P.A. 98-22, eff. 6-17-13.)
 
16    (225 ILCS 732/1-35)
17    Sec. 1-35. High volume horizontal hydraulic fracturing or
18horizontal drilling with fracturing operations permit
19application.
20    (a) Every applicant for a permit under this Act shall first
21register with the Department at least 30 days before applying
22for a permit. The Department shall make available a
23registration form within 90 days after the effective date of
24this Act. The registration form shall require the following
25information:

 

 

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1        (1) the name and address of the registrant and any
2    parent, subsidiary, or affiliate thereof;
3        (2) disclosure of all findings of a serious violation
4    or an equivalent violation under federal or state laws or
5    regulations in the development or operation of an oil or
6    gas exploration or production site via hydraulic
7    fracturing by the applicant or any parent, subsidiary, or
8    affiliate thereof within the previous 5 years; and
9        (3) proof of insurance to cover injuries, damages, or
10    loss related to pollution or diminution in the amount of at
11    least $5,000,000, from an insurance carrier authorized,
12    licensed, or permitted to do this insurance business in
13    this State that holds at least an A- rating by A.M. Best &
14    Co. or any comparable rating service.
15    A registrant must notify the Department of any change in
16the information identified in paragraphs (1), (2), or (3) of
17this subsection (a) at least annually or upon request of the
18Department.
19    (b) Every applicant for a permit under this Act must submit
20the following information to the Department on an application
21form provided by the Department:
22        (1) the name and address of the applicant and any
23    parent, subsidiary, or affiliate thereof;
24        (2) the proposed well name and address and legal
25    description of the well site and its unit area;
26        (3) a statement whether the proposed location of the

 

 

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1    well site is in compliance with the requirements of Section
2    1-25 of this Act and a plat, which shows:
3            (A) the proposed surface location of the well site,
4        providing the distance in feet, from the surface
5        location of the well site to the features described in
6        subsection (a) of Section 1-25 of this Act; and
7            (B) the proposed subsurface location of any
8        horizontal wellbore;
9        (4) a detailed description of the proposed well to be
10    used for the high volume horizontal hydraulic fracturing
11    operations or horizontal drilling with fracturing
12    operations including, but not limited to, the following
13    information:
14            (A) the approximate total depth to which the well
15        is to be drilled or deepened;
16            (B) the proposed angle and direction of the well;
17            (C) the actual depth or the approximate depth at
18        which the well to be drilled deviates from vertical;
19            (D) the angle and direction of any nonvertical
20        portion of the wellbore until the well reaches its
21        total target depth or its actual final depth; and
22            (E) the estimated length and direction of the
23        proposed horizontal lateral or wellbore;
24        (5) the estimated depth and elevation, according to the
25    most recent publication of the Illinois State Geological
26    Survey of Groundwater for the location of the well, of the

 

 

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1    lowest potential fresh water along the entire length of the
2    proposed wellbore;
3        (6) a detailed description of the proposed high volume
4    horizontal hydraulic fracturing operations or horizontal
5    drilling with fracturing operations, including, but not
6    limited to, the following:
7            (A) the formation affected by the high volume
8        horizontal hydraulic fracturing operations or
9        horizontal drilling with fracturing operations,
10        including, but not limited to, geologic name and
11        geologic description of the formation that will be
12        stimulated by the operation;
13            (B) the anticipated surface treating pressure
14        range;
15            (C) the maximum anticipated injection treating
16        pressure;
17            (D) the estimated or calculated fracture pressure
18        of the producing and confining zones; and
19            (E) the planned depth of all proposed perforations
20        or depth to the top of the open hole section;
21        (7) a plat showing all known previous wellbores well
22    bores within 750 feet of any part of the horizontal
23    wellbore well bore that penetrated within 400 vertical feet
24    of the formation that will be stimulated as part of the
25    high volume horizontal hydraulic fracturing operations or
26    horizontal drilling with fracturing operations;

 

 

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1        (8) unless the applicant documents why the information
2    is not available at the time the application is submitted,
3    a chemical disclosure report identifying each chemical and
4    proppant anticipated to be used in hydraulic fracturing
5    fluid for each stage of the hydraulic fracturing operations
6    including the following:
7            (A) the total volume of water anticipated to be
8        used in the hydraulic fracturing treatment of the well
9        or the type and total volume of the base fluid
10        anticipated to be used in the hydraulic fracturing or
11        fracturing treatment, if something other than water;
12            (B) each hydraulic fracturing or fracturing
13        additive anticipated to be used in the hydraulic
14        fracturing or fracturing fluid, including the trade
15        name, vendor, a brief descriptor of the intended use or
16        function of each hydraulic fracturing or fracturing
17        additive, and the Material Safety Data Sheet (MSDS), if
18        applicable;
19            (C) each chemical anticipated to be intentionally
20        added to the base fluid, including for each chemical,
21        the Chemical Abstracts Service number, if applicable;
22        and
23            (D) the anticipated concentration in the base
24        fluid, in percent by mass, of each chemical to be
25        intentionally added to the base fluid;
26        (9) a certification of compliance with the Water Use

 

 

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1    Act of 1983 and applicable regional water supply plans;
2        (10) a fresh water withdrawal and management plan that
3    shall include the following information:
4            (A) the source of the water, such as surface or
5        groundwater, anticipated to be used for water
6        withdrawals, and the anticipated withdrawal location;
7            (B) the anticipated volume and rate of each water
8        withdrawal from each withdrawal location;
9            (C) the anticipated months when water withdrawals
10        shall be made from each withdrawal location;
11            (D) the methods to be used to minimize water
12        withdrawals as much as feasible; and
13            (E) the methods to be used for surface water
14        withdrawals to minimize adverse impact to aquatic
15        life.
16        Where a surface water source is wholly contained within
17    a single property, and the owner of the property expressly
18    agrees in writing to its use for water withdrawals, the
19    applicant is not required to include this surface water
20    source in the fresh water withdrawal and management plan; .
21        (11) a plan for the handling, storage, transportation,
22    and disposal or reuse of hydraulic fracturing or fracturing
23    fluids and hydraulic fracturing or fracturing flowback.
24    The plan shall identify the specific Class II injection
25    well or wells that will be used to dispose of the hydraulic
26    fracturing or fracturing flowback. The plan shall describe

 

 

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

 

 

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1        (14) a casing and cementing plan that describes the
2    casing and cementing practices to be employed, including
3    the size of each string of pipe, the starting point, and
4    depth to which each string is to be set and the extent to
5    which each string is to be cemented;
6        (15) a traffic management plan that identifies the
7    anticipated roads, streets, and highways that will be used
8    for access to and egress from the well site. The traffic
9    management plan will include a point of contact to discuss
10    issues related to traffic management. Within 15 calendar
11    days after submitting the permit application to the
12    Department, the applicant must provide a copy of the
13    traffic management plan to the county or counties in which
14    the well site is located, and within 5 calendar days of its
15    receipt, the Department shall provide a copy of the traffic
16    management plan to the Office of the State Fire Marshal;
17        (16) the names and addresses of all owners of any real
18    property within 1,500 feet of the proposed well site, as
19    disclosed by the records in the office of the recorder of
20    the county or counties;
21        (16.5) the names and addresses of all owners of the
22    surface under which a horizontal wellbore is planned and
23    the names and addresses of all owners of the surface within
24    500 feet of an imaginary line on the surface directly over
25    the subsurface trajectory of any horizontal wellbore, with
26    ownership as disclosed by the records in the office of the

 

 

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1    recorder of the county or counties;
2        (16.10) the names and addresses of all owners of right
3    to the subsurface through which a vertical or horizontal
4    wellbore is planned, with ownership as disclosed by the
5    records in the office of the recorder of the county or
6    counties;
7        (17) drafts of the specific public notice and general
8    public notice as required by Section 1-40 of this Act;
9        (18) statement that the well site at which the high
10    volume horizontal hydraulic fracturing operation or
11    horizontal drilling with fracturing operations will be
12    conducted will be restored in compliance with Section
13    240.1181 of Title 62 of the Illinois Administrative Code
14    and Section 1-95 of this Act;
15        (19) proof of insurance to cover injuries, damages, or
16    loss related to pollution in the amount of at least
17    $5,000,000; and
18        (20) any other relevant information which the
19    Department may, by rule, require.
20    (c) Where an application is made to conduct high volume
21horizontal fracturing operations at a well site located within
22the limits of any city, village, or incorporated town, the
23application shall state the name of the city, village, or
24incorporated town and be accompanied with a certified copy of
25the official consent for the hydraulic fracturing operations or
26horizontal drilling with fracturing operations to occur from

 

 

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1the municipal authorities where the well site is proposed to be
2located. No permit shall be issued unless consent is secured
3and filed with the permit application. In the event that an
4amended location is selected, the original permit shall not be
5valid unless a new certified consent is filed for the amended
6location.
7    (d) The hydraulic fracturing or horizontal drilling with
8fracturing operations permit application shall be accompanied
9by a bond as required by subsection (a) of Section 1-65 of this
10Act.
11    (e) Each application for a permit under this Act shall
12include payment of a non-refundable fee of $13,500. Of this
13fee, $11,000 shall be deposited into the Mines and Minerals
14Regulatory Fund for the Department to use to administer and
15enforce this Act and otherwise support the operations and
16programs of the Office of Mines and Minerals. The remaining
17$2,500 shall be deposited into the Illinois Clean Water Fund
18for the Agency to use to carry out its functions under this
19Act. The Department shall not initiate its review of the permit
20application until the applicable fee under this subsection (e)
21has been submitted to and received by the Department.
22    (f) Each application submitted under this Act shall be
23signed, under the penalty of perjury, by the applicant or the
24applicant's designee who has been vested with the authority to
25act on behalf of the applicant and has direct knowledge of the
26information contained in the application and its attachments.

 

 

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1Any person signing an application shall also sign an affidavit
2with the following certification:
3        "I certify, under penalty of perjury as provided by law
4    and under penalty of refusal, suspension, or revocation of
5    a high volume horizontal hydraulic fracturing or
6    horizontal drilling with fracturing operations permit,
7    that this application and all attachments are true,
8    accurate, and complete to the best of my knowledge.".
9    (g) The permit application shall be submitted to the
10Department in both electronic and hard copy format. The
11electronic format shall be searchable.
12    (h) The application for a high volume horizontal hydraulic
13fracturing or horizontal drilling with fracturing operations
14permit may be submitted as a combined permit application with
15the operator's application to drill on a form as the Department
16shall prescribe. The combined application must include the
17information required in this Section. If the operator elects to
18submit a combined permit application, information required by
19this Section that is duplicative of information required for an
20application to drill is only required to be provided once as
21part of the combined application. The submission of a combined
22permit application under this subsection shall not be
23interpreted to relieve the applicant or the Department from
24complying with the requirements of this Act or the Illinois Oil
25and Gas Act.
26    (i) Upon receipt of a permit application, the Department

 

 

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1shall have no more than 60 calendar days from the date it
2receives the permit application to approve, with any conditions
3the Department may find necessary, or reject the application
4for the high volume horizontal hydraulic fracturing or
5horizontal drilling with fracturing operations permit. The
6applicant may waive, in writing, the 60-day deadline upon its
7own initiative or in response to a request by the Department.
8    (j) If at any time during the review period the Department
9determines that the permit application is not complete under
10this Act, does not meet the requirements of this Section, or
11requires additional information, the Department shall notify
12the applicant in writing of the application's deficiencies and
13allow the applicant to correct the deficiencies and provide the
14Department any information requested to complete the
15application. If the applicant fails to provide adequate
16supplemental information within the review period, the
17Department may reject the application.
18(Source: P.A. 98-22, eff. 6-17-13; revised 11-12-13.)
 
19    (225 ILCS 732/1-40)
20    Sec. 1-40. Public notice.
21    (a) Within 5 calendar days after the Department's receipt
22of the high volume horizontal hydraulic fracturing or
23horizontal drilling with fracturing operations application,
24the Department shall post notice of its receipt and a copy of
25the permit application on its website. The notice shall include

 

 

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1the dates of the public comment period and directions for
2interested parties to submit comments.
3    (b) Within 5 calendar days after the Department's receipt
4of the permit application and notice to the applicant that the
5high volume horizontal hydraulic fracturing or horizontal
6drilling with fracturing operations permit application was
7received, the Department shall provide the Agency, the Office
8of the State Fire Marshal, Illinois State Water Survey, and
9Illinois State Geological Survey with notice of the
10application.
11    (c) The applicant shall provide the following public
12notice:
13        (1) Applicants shall mail specific public notice by
14    U.S. Postal Service certified mail, return receipt
15    requested, within 3 calendar days after submittal of the
16    high volume horizontal hydraulic fracturing or horizontal
17    drilling with fracturing operations permit application to
18    the Department, to:
19            (A) all persons identified as owners of real
20        property within 1,500 feet of the proposed well site,
21        as disclosed by the records in the office of the
22        recorder of the county or counties, and to each
23        municipality and county in which the well site is
24        proposed to be located; .
25            (B) all owners of the surface under which a
26        horizontal wellbore is planned and all owners of the

 

 

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1        surface within 500 feet of an imaginary line on the
2        surface directly over the subsurface trajectory of any
3        horizontal wellbore, with ownership as disclosed by
4        the records in the office of the recorder of the county
5        or counties; and
6            (C) all owners of right to the subsurface through
7        which a vertical or horizontal wellbore is planned,
8        with ownership as disclosed by the records in the
9        office of the recorder of the county or counties.
10        (2) Except as otherwise provided in this paragraph (2)
11    of subsection (c), applicants shall provide general public
12    notice by publication, once each week for 2 consecutive
13    weeks, beginning no later than 3 calendar days after
14    submittal of the high volume horizontal hydraulic
15    fracturing or horizontal drilling with fracturing
16    operations permit application to the Department, in a
17    newspaper of general circulation published in each county
18    where the well proposed for high volume hydraulic
19    fracturing operations or horizontal drilling with
20    fracturing operations is proposed to be located.
21        If a well is proposed for high volume hydraulic
22    fracturing operations or horizontal drilling with
23    fracturing operations in a county where there is no daily
24    newspaper of general circulation, applicant shall provide
25    general public notice, by publication, once each week for 2
26    consecutive weeks, in a weekly newspaper of general

 

 

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1    circulation in that county beginning as soon as the
2    publication schedule of the weekly newspaper permits, but
3    in no case later than 10 days after submittal of the high
4    volume hydraulic fracturing or horizontal drilling with
5    fracturing operations permit application to the
6    Department.
7        (3) The specific and general public notices required
8    under this subsection shall contain the following
9    information:
10            (A) the name and address of the applicant;
11            (B) the date the application for a high volume
12        horizontal hydraulic fracturing or horizontal drilling
13        with fracturing operations 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 or horizontal drilling
18        with fracturing operations permit application with the
19        Department during the public comment period;
20            (D) the proposed well name, reference number
21        assigned by the Department, and the address and legal
22        description of the well site and its unit area;
23            (E) a statement that the information filed by the
24        applicant in their application for a high volume
25        horizontal hydraulic fracturing or horizontal drilling
26        with fracturing operations permit is available from

 

 

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1        the Department through its website;
2            (F) the Department's website and the address and
3        telephone number for the Department's Oil and Gas
4        Division;
5            (G) a statement that any person having an interest
6        that is or may be adversely affected, any government
7        agency that is or may be affected, or the county board
8        of a county to be affected under a proposed permit, may
9        file written objections to a permit application and may
10        request a public hearing.
11    (d) After providing the public notice as required under
12paragraph (2) of subsection (c) of this Section, the applicant
13shall supplement its permit application by providing the
14Department with a certification and documentation that the
15applicant fulfilled the public notice requirements of this
16Section. The Department shall not issue a permit until the
17applicant has provided the supplemental material required
18under this subsection.
19    (e) If multiple applications are submitted at the same time
20for wells located on the same well site, the applicant may use
21one public notice for all applications provided the notice is
22clear that it pertains to multiple applications and conforms to
23the requirements of this Section. Notice shall not constitute
24standing for purposes of requesting a public hearing or for
25standing to appeal the decision of the Department in accordance
26with the Administrative Review Law.

 

 

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1(Source: P.A. 98-22, eff. 6-17-13.)
 
2    (225 ILCS 732/1-55)
3    Sec. 1-55. High volume horizontal hydraulic fracturing or
4horizontal drilling with fracturing operations permit;
5conditions; restriction; modifications.
6    (a) Each permit issued by the Department under this Act
7shall require the permittee to comply with all provisions of
8this Act and all other applicable local, State, and federal
9laws, rules, and regulations in effect at the time the permit
10is issued. All plans submitted with the application under
11Section 1-35 shall be conditions of the permit.
12    (b) A permit issued under this Act shall continue in effect
13until plugging and restoration in compliance with this Act and
14the Illinois Oil and Gas Act are completed to the Department's
15satisfaction. No permit may be transferred to another person
16without approval of the Department.
17    (c) No permit issued under this Act may be modified without
18approval of the Department. If the Department determines that
19the proposed modifications constitute a significant deviation
20from the terms of the original application and permit approval,
21or presents a serious risk to public health, life, property,
22aquatic life, or wildlife, the Department shall provide the
23opportunities for notice, comment, and hearing required under
24Sections 1-45 and 1-50 of this Act. The Department shall
25provide notice of the proposed modification and opportunity for

 

 

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1comment and hearing to the persons who received specific public
2notice under Section 1-40 of this Act and shall publish the
3notice and the proposed modification on its website. The
4Department shall adopt rules regarding procedures for a permit
5modification. When any change is made from the planned course
6of a horizontal wellbore and the change involves drilling on,
7under, or through real property that was not identified on the
8original permit application or for which notice was not given
9or consent not obtained and shown, the change shall be
10considered a significant deviation from the terms of the
11original application and permit approval shall not proceed
12until notice has been given and consent has been obtained and
13shown to the Department's satisfaction.
14(Source: P.A. 98-22, eff. 6-17-13.)