Rep. Jay Hoffman

Filed: 5/26/2026

 

 


 

 


 
10400SB3113ham001LRB104 19645 CCC 38184 a

1
AMENDMENT TO SENATE BILL 3113

2    AMENDMENT NO. ______. Amend Senate Bill 3113 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Illinois Oil and Gas Act is amended by
5changing Sections 1, 6, 8a, 8e, 14, and 26 and by adding
6Section 19.10 as follows:
 
7    (225 ILCS 725/1)  (from Ch. 96 1/2, par. 5401)
8    Sec. 1. Unless the context otherwise requires, the words
9defined in this Section have the following meanings as used in
10this Act.
11    "Class II fluids" includes:
12        (1) produced water or other fluids brought to the
13    surface in connection with drilling, completion, workover,
14    and plugging of oil and natural gas wells; enhanced
15    recovery operations; or natural gas storage operations;
16        (2) produced water or other fluids described in item

 

 

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1    (1) of this definition that, prior to re-injection, have
2    been:
3            (A) used on site for purposes integrally
4        associated to oil and natural gas well drilling,
5        completion, workover and plugging, oil and gas
6        production, enhanced recovery operations or natural
7        gas storage;
8            (B) chemically treated or altered to the extent
9        necessary to make them usable for purposes integrally
10        related to oil and natural gas well drilling,
11        completion, workover and plugging, oil and gas
12        production, enhanced recovery operations, or natural
13        gas storage operations;
14            (C) commingled with fluid wastes resulting from
15        fluid treatments outlined in this item (2) if, the
16        commingled fluid wastes do not constitute a hazardous
17        waste under the Resource Conservation and Recovery Act
18        (42 U.S.C. 6901 et seq.);
19        (3) fresh water from groundwater or surface water
20    sources that is used for purposes integrally related or
21    associated with oil and natural gas well drilling,
22    completion, workover and plugging, oil and gas production,
23    enhanced recovery operations, or natural gas storage;
24    waste fluids from gas plants (including filter backwash,
25    precipitated sludge, iron sponge, hydrogen sulfide and
26    scrubber liquid) that are an integral part of oil and gas

 

 

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1    production operations; and
2        (4) waste fluids from gas dehydration plants
3    (including glycol-based compounds and filter backwash)
4    that are an integral part of natural gas storage
5    operations, unless the gas plant or gas dehydration plant
6    wastes are classified as hazardous under the Resource
7    Conservation and Recovery Act.
8    "Department" means the Department of Natural Resources.
9    "Director" means the Director of Natural Resources.
10    "Drilling unit" means the surface area allocated by an
11order or rule of the Department to the drilling of a single
12well for the production of oil or gas from an individual pool.
13    "Enhanced recovery method" means any method used in an
14effort to recover hydrocarbons from a pool by the injection of
15fluids, gases, or other substances to maintain, restore, or
16augment natural reservoir energy, or by introducing immiscible
17or miscible gases, chemicals, or other substances, or heat, or
18by in-situ combustion, or by any combination thereof.
19    "Field" means the same general surface area that is
20underlaid or appears to be underlaid by one or more pools.
21    "Fresh water" means surface and subsurface water in its
22natural state useful as drinking water for human consumption,
23domestic livestock, irrigation, industrial, municipal, and
24recreational purposes, and that will support aquatic life and
25contains less than 10,000 ppm of total dissolved solids.
26    "Person" means any natural person, corporation,

 

 

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1association, partnership, governmental agency or other legal
2entity, receiver, trustee, guardian, executor, administrator,
3fiduciary or representative of any kind.
4    "Oil" means natural crude oil or petroleum and other
5hydrocarbons, regardless of gravity, which are produced at the
6well in liquid form by ordinary production methods or by the
7use of an oil and gas separator and which are not the result of
8condensation of gas after it leaves the underground reservoir.
9    "Gas" means all natural gas, including casinghead gas, and
10all other natural hydrocarbons not defined above as oil.
11    "Mineral owner's royalty" means the share of oil and gas
12production reserved in an oil and gas lease, free of all costs
13by an owner of the minerals, whether denominated royalty or
14overriding royalty.
15    "Mining Board" means the State Mining Board in the
16Department of Natural Resources Office of Mines and Minerals.
17    "Oil" means natural crude oil or petroleum and other
18hydrocarbons, regardless of gravity, which are produced at the
19well in liquid form by ordinary production methods or by the
20use of an oil and gas separator, which are not the result of
21condensation of gas after it leaves the underground reservoir.
22    "Orphan well" means a well for which: (1) no fee
23assessment under Section 19.7 of this Act has been paid or no
24other bond coverage has been provided for 2 consecutive years;
25(2) no oil or gas has been produced from the well or from the
26lease or unit on which the well is located for 2 consecutive

 

 

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1years; and (3) no permittee or owner can be identified or
2located by the Department. "Orphan well" includes a well that
3has been drilled for purposes other than those for which a
4permit is required under this Act if the well is a conduit for
5oil or salt water intrusions into fresh water zones or onto the
6surface, which may be caused by oil and gas operations.
7    "Owner" means the person who has the right to drill into
8and produce from any pool and to appropriate the production
9either for the person or for the person and another, others, or
10solely for others, excluding the mineral owner's royalty, if
11the right to drill and produce has been granted under an oil
12and gas lease. "Owner" includes a person granted the right to
13drill and operate an injection (Class II UIC) well independent
14of the right to drill for and produce oil or gas. When the
15right to drill, produce, and appropriate production is held by
16more than one person, then all persons holding these rights
17may designate the owner by a written operating agreement or
18similar written agreement. In the absence of such an
19agreement, and subject to the provisions of Sections 22.2 and
2023.1 through 23.16 of this Act, the owner shall be the person
21designated in writing by a majority of the persons in interest
22holding these rights.
23    "Permit" means the Department's written authorization
24allowing a well to be drilled, deepened, converted, or
25operated by an owner.
26    "Permittee" means the owner holding or required to hold

 

 

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1the permit, and who is also responsible for paying assessments
2in accordance with Section 19.7 of this Act, and, where
3applicable, executing and filing the bond associated with the
4well as principal, and who is responsible for compliance with
5all statutory and regulatory requirements pertaining to the
6well.
7    When the right and responsibility for operating a well is
8vested in a receiver or trustee appointed by a court of
9competent jurisdiction, the permit shall be issued to the
10receiver or trustee.
11    "Person" means any natural person, corporation,
12association, partnership, governmental agency, including any
13other legal entity, receiver, trustee, guardian, executor,
14administrator, fiduciary, or representative of any kind.
15    "Pool" means a natural, underground reservoir containing
16in whole or in part, a natural accumulation of oil or gas, or
17both. Each productive zone or stratum of a general structure,
18which is completely separated from any other zone or stratum
19in the structure, is deemed a separate "pool" as used herein.
20    "Produced water" means water, regardless of chloride and
21total dissolved solids content that is produced in conjunction
22with oil and natural gas production or natural gas storage
23operations.
24    "Temporary abandonment status" means a well that has
25received an authorization for temporary abandonment status
26from the Department.

 

 

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1    "Vacuum" means pressure that is reduced below the pressure
2of the atmosphere.
3    "Field" means the same general surface area which is
4underlaid or appears to be underlaid by one or more pools.
5    "Permit" means the Department's written authorization
6allowing a well to be drilled, deepened, converted, or
7operated by an owner.
8    "Permittee" means the owner holding or required to hold
9the permit, and who is also responsible for paying assessments
10in accordance with Section 19.7 of this Act and, where
11applicable, executing and filing the bond associated with the
12well as principal and who is responsible for compliance with
13all statutory and regulatory requirements pertaining to the
14well.
15    When the right and responsibility for operating a well is
16vested in a receiver or trustee appointed by a court of
17competent jurisdiction, the permit shall be issued to the
18receiver or trustee.
19    "Orphan Well" means a well for which: (1) no fee
20assessment under Section 19.7 of this Act has been paid or no
21other bond coverage has been provided for 2 consecutive years;
22(2) no oil or gas has been produced from the well or from the
23lease or unit on which the well is located for 2 consecutive
24years; and (3) no permittee or owner can be identified or
25located by the Department. Orphaned wells include wells that
26may have been drilled for purposes other than those for which a

 

 

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1permit is required under this Act if the well is a conduit for
2oil or salt water intrusions into fresh water zones or onto the
3surface which may be caused by oil and gas operations.
4    "Owner" means the person who has the right to drill into
5and produce from any pool, and to appropriate the production
6either for the person or for the person and another, or others,
7or solely for others, excluding the mineral owner's royalty if
8the right to drill and produce has been granted under an oil
9and gas lease. An owner may also be a person granted the right
10to drill and operate an injection (Class II UIC) well
11independent of the right to drill for and produce oil or gas.
12When the right to drill, produce, and appropriate production
13is held by more than one person, then all persons holding these
14rights may designate the owner by a written operating
15agreement or similar written agreement. In the absence of such
16an agreement, and subject to the provisions of Sections 22.2
17and 23.1 through 23.16 of this Act, the owner shall be the
18person designated in writing by a majority in interest of the
19persons holding these rights.
20    "Department" means the Department of Natural Resources.
21    "Director" means the Director of Natural Resources.
22    "Mining Board" means the State Mining Board in the
23Department of Natural Resources, Office of Mines and Minerals.
24    "Mineral Owner's Royalty" means the share of oil and gas
25production reserved in an oil and gas lease free of all costs
26by an owner of the minerals whether denominated royalty or

 

 

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1overriding royalty.
2    "Waste" means "physical waste" as that term is generally
3understood in the oil and gas industry, and further includes:
4        (1) the locating, drilling, and producing of any oil
5    or gas well or wells drilled contrary to the valid order,
6    rules and regulations adopted by the Department under the
7    provisions of this Act;
8        (2) permitting the migration of oil, gas, or water
9    from the stratum in which it is found, into other strata,
10    thereby ultimately resulting in the loss of recoverable
11    oil, gas or both;
12        (3) the drowning with water of any stratum or part
13    thereof capable of producing oil or gas, except for
14    secondary recovery purposes;
15        (4) the unreasonable damage to underground, fresh or
16    mineral water supply, workable coal seams, or other
17    mineral deposits in the operations for the discovery,
18    development, production, or handling of oil and gas;
19        (5) the unnecessary or excessive surface loss or
20    destruction of oil or gas resulting from evaporation,
21    seepage, leakage or fire, especially such loss or
22    destruction incident to or resulting from the escape of
23    gas into the open air in excessive or unreasonable
24    amounts, provided, however, it shall not be unlawful for
25    the operator or owner of any well producing both oil and
26    gas to burn such gas in flares when such gas is, under the

 

 

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1    other provisions of this Act, lawfully produced, and where
2    there is no market at the well for such escaping gas; and
3    where the same is used for the extraction of casinghead
4    gas, it shall not be unlawful for the operator of the plant
5    after the process of extraction is completed, to burn such
6    residue in flares when there is no market at such plant for
7    such residue gas;
8        (6) permitting unnecessary fire hazards; and
9        (7) permitting unnecessary damage to or destruction of
10    the surface, soil, animal, fish or aquatic life or
11    property from oil or gas operations.
12    "Drilling Unit" means the surface area allocated by an
13order or regulation of the Department to the drilling of a
14single well for the production of oil or gas from an individual
15pool.
16    "Enhanced Recovery Method" means any method used in an
17effort to recover hydrocarbons from a pool by injection of
18fluids, gases or other substances to maintain, restore or
19augment natural reservoir energy, or by introducing immiscible
20or miscible gases, chemicals, other substances or heat or by
21in-situ combustion, or by any combination thereof.
22    "Well-Site Equipment" means any production-related
23equipment or materials specific to the well, including motors,
24pumps, pump jacks, tanks, tank batteries, separators,
25compressors, casing, tubing, and rods.
26    "Temporary abandonment status" means a well that has

 

 

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1received an authorization for temporary abandonment status
2from the Department.
3(Source: P.A. 102-1017, eff. 1-1-23.)
 
4    (225 ILCS 725/6)  (from Ch. 96 1/2, par. 5409)
5    Sec. 6. The Department shall have the authority to conduct
6hearings and to make such reasonable rules as may be necessary
7from time to time in the proper administration and enforcement
8of this Act, including the adoption of rules and the holding of
9hearings for the following purposes:
10        (1) To require the drilling, casing and plugging of
11    wells to be done in such a manner as to prevent the
12    migration of oil or gas from one stratum to another; to
13    prevent the intrusion of water into oil, gas or coal
14    strata; to prevent the pollution of fresh water supplies
15    by oil, gas or salt water.
16        (2) To require the person desiring or proposing to
17    drill, deepen or convert any well for the exploration or
18    production of oil or gas, for injection or water supply in
19    connection with enhanced recovery projects, for the
20    disposal of salt water, brine, or other oil or gas field
21    wastes, or for input, withdrawal, or observation in
22    connection with the storage of natural gas or other liquid
23    or gaseous hydrocarbons before commencing the drilling,
24    deepening or conversion of any such well, to make
25    application to the Department upon such form as the

 

 

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1    Department may prescribe and to comply with the provisions
2    of this Section. The drilling, deepening or conversion of
3    any well is hereby prohibited until such application is
4    made and the applicant is issued a permit therefor as
5    provided by this Act. Each application for a well permit
6    shall include the following: (A) The exact location of the
7    well, (B) the name and address of the manager, operator,
8    contractor, driller, or any other person responsible for
9    the conduct of drilling operations, (C) the proposed depth
10    of the well, (D) lease ownership information, and (E) such
11    other relevant information as the Department may deem
12    necessary or convenient to effectuate the purposes of this
13    Act.
14        (2.5) Additionally, for each applicant who has not
15    been issued a permit that is (i) not of record with the
16    Department on the effective date of this amendatory Act of
17    the 104th General Assembly, or (ii) a permittee on record
18    with the Department but who has failed to make payments of
19    the assessments as required under Section 19.7 of this Act
20    at any time in the preceding 5 years of the application,
21    the permittee or applicant shall execute, as principal,
22    and file with the Department a bond, executed by a surety
23    authorized to transact business in this State, in an
24    amount estimated to cover the cost of plugging the well
25    and restoring the well site and shall set at the following
26    rates:

 

 

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1            (A) $10,000 for one well;
2            (B) $25,000 in total covering a blanket bond for
3        up to 10 wells;
4            (C) $50,000 in total covering a blanket bond for
5        up to 50 wells; or
6            (D) $100,000 in total covering a blanket bond for
7        up to 100 wells.
8        A blanket bond covering more than 100 wells shall be
9    increased to include the bond amount, as provided in this
10    paragraph (2.5), for the total number of wells more than
11    100 that are covered by the blanket bond. Such bond shall
12    be submitted to the Department before drilling, deepening,
13    converting, or operating any well for which a new or
14    transfer permit is required and that has not previously
15    been plugged and abandoned in accordance with the Act. The
16    Department shall release the bond if any of the following
17    are met:
18            (i) all wells covered by the bond are plugged and
19        all well sites are restored in accordance with this
20        Act and administrative rules;
21            (ii) all wells covered by the bond are transferred
22        in accordance with this Act and administrative rules;
23        or
24            (iii) the permittee pays assessments to the
25        Department in accordance with Section 19.7 of this Act
26        for 5 consecutive years from the date of issuance of a

 

 

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1        permit after the effective date of this amendatory Act
2        of the 104th General Assembly and the permittee is not
3        in violation of this Act or any administrative rules.
4        In lieu of a surety bond, the applicant may provide
5    certificates of deposit or irrevocable letters of credit
6    under such terms and conditions as the Department may
7    provide by rule.
8        The sureties on all bonds in effect on this amendatory
9    Act of the 104th General Assembly shall remain liable as
10    sureties in accordance with their undertakings until
11    released by the Department from further liability under
12    the Act. The principal on each bond in effect on the
13    effective date of this amendatory Act of the 104th General
14    Assembly shall be released from the obligation of
15    maintaining the bond if the well covered by a surety bond
16    has been plugged and the well site restored in accordance
17    with the Department's rules or the principal of the surety
18    has paid the initial assessment in accordance with Section
19    19.7 and no well or well site covered by the surety bond is
20    in violation of the Act.
21        No permit shall be issued to a corporation
22    incorporated outside of Illinois until the corporation has
23    been authorized to do business in Illinois.
24        No permit shall be issued to an individual,
25    partnership, or other unincorporated entity that is not a
26    resident of Illinois until that individual, partnership,

 

 

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1    or other unincorporated entity has irrevocably consented
2    to be sued in Illinois.
3        (3) To require the person assigning, transferring, or
4    selling any well for which a permit is required under this
5    Act to notify the Department of the change of ownership.
6    The notification shall be on a form prescribed by the
7    Department, shall be executed by the current permittee and
8    by the new permittee, or their authorized representatives,
9    and shall be filed with the Department within 30 days
10    after the effective date of the assignment, transfer or
11    sale. Within the 30-day 30 day notification period and
12    prior to operating the well, the new permittee shall pay
13    the required well transfer fee and, where applicable, file
14    with the Department the bond required under subsection
15    (2.5) of this Section.
16        (4) To require the filing with the State Geological
17    Survey of all geophysical logs, a well drilling report and
18    drill cuttings or cores, if cores are required, within 90
19    days after drilling ceases; and to file a completion
20    report with the Department within 30 days after the date
21    of first production following initial drilling or any
22    reworking, or after the plugging of the well, if a dry
23    hole. A copy of each completion report submitted to the
24    Department shall be delivered to the State Geological
25    Survey. The Department and the State Geological Survey
26    shall keep the reports confidential, if requested in

 

 

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1    writing by the permittee, for 2 years after the date the
2    permit is issued by the Department. This confidentiality
3    requirement shall not prohibit the use of the report for
4    research purposes, provided the State Geological Survey
5    does not publish specific data or identify the well to
6    which the completion report pertains.
7        (5) To prevent "blowouts", "caving" and "seepage" in
8    the same sense that conditions indicated by such terms are
9    generally understood in the oil and gas business.
10        (6) To prevent fires.
11        (7) To ascertain and identify the ownership of all oil
12    and gas wells, producing leases, refineries, tanks,
13    plants, structures, and all storage and transportation
14    equipment and facilities.
15        (8) To regulate the use of any enhanced recovery
16    method in oil pools and oil fields.
17        (9) To regulate or prohibit the use of vacuum,
18    including charging a vacuum permit application fee of up
19    to $300 per permit.
20        (10) To regulate the spacing of wells, the issuance of
21    permits, and the establishment of drilling units.
22        (11) To regulate directional drilling of oil or gas
23    wells.
24        (12) To regulate the plugging of wells.
25        (13) To require that wells for which no logs or
26    unsatisfactory logs are supplied shall be completely

 

 

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1    plugged with cement from bottom to top.
2        (14) To require a description in such form as is
3    determined by the Department of the method of well
4    plugging for each well, indicating the character of
5    material used and the positions and dimensions of each
6    plug.
7        (15) To prohibit waste, as defined in this Act.
8        (16) To require the keeping of such records, the
9    furnishing of such relevant information and the
10    performance of such tests as the Department may deem
11    necessary to carry into effect the purposes of this Act.
12        (17) To regulate the disposal of salt or
13    sulphur-bearing water and any oil field waste produced in
14    the operation of any oil or gas well.
15        (18) To prescribe rules, conduct inspections and
16    require compliance with health and safety standards for
17    the protection of persons working underground in
18    connection with any oil and gas operations. For the
19    purposes of this paragraph, oil and gas operations include
20    drilling or excavation, production operations, plugging or
21    filling in and sealing, or any other work requiring the
22    presence of workers in shafts or excavations beneath the
23    surface of the earth. Rules promulgated by the Department
24    may include minimum qualifications of persons performing
25    tasks affecting the health and safety of workers
26    underground, minimum standards for the operation and

 

 

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1    maintenance of equipment, and safety procedures and
2    precautions, and shall conform, as nearly as practicable,
3    to corresponding qualifications, standards and procedures
4    prescribed under the Coal Mining Act.
5        (19) To deposit the amount of any forfeited surety
6    bond or other security in the Plugging and Restoration
7    Fund, a special fund in the State treasury which is hereby
8    created; to deposit into the Fund any amounts collected,
9    reimbursed or recovered by the Department under Sections
10    19.5, 19.6 and 19.7 of this Act; to accept, receive, and
11    deposit into the Fund any grants, gifts or other funds
12    which may be made available from public or private sources
13    and all earnings received from investment of monies in the
14    Fund; and to make expenditures from the Fund for the
15    purposes of plugging, replugging or repairing any well,
16    and restoring the site of any well, determined by the
17    Department to be abandoned or ordered by the Department to
18    be plugged, replugged, repaired or restored under Sections
19    8a, 19 or 19.1 of this Act, including expenses in
20    administering the Fund.
21    For the purposes of this Act, the State Geological Survey
22shall co-operate with the Department in making available its
23scientific and technical information on the oil and gas
24resources of the State, and the Department shall in turn
25furnish a copy to the State Geological Survey of all drilling
26permits as issued, and such other drilling and operating data

 

 

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1received or secured by the Department which are pertinent to
2scientific research on the State's mineral resources.
3(Source: P.A. 104-150, eff. 1-1-26.)
 
4    (225 ILCS 725/8a)  (from Ch. 96 1/2, par. 5413)
5    Sec. 8a. When an inspector or other authorized employee or
6agent of the Department determines that any permittee, or any
7person engaged in conduct or activities required to be
8permitted under this Act, is in violation of any requirement
9of this Act or the rules adopted hereunder or any permit
10condition, or has falsified or otherwise misstated any
11information on or relative to any application, permit,
12required record, or other document required to be submitted to
13the Department by this Act or any rules or procedures adopted
14under this Act, a notice of violation shall be completed and
15delivered to the Director or his designee.
16    The notice shall contain:
17        1. the nature of the violation;
18        2. the action needed to abate the violation, including
19    any appropriate remedial measures to prevent future
20    violation such as replacement, repair, testing and
21    reworking a well and any appurtenances and equipment;
22        3. the time within which the violation is to be
23    abated; and
24        4. any factors known to the person completing the
25    notice of violation in aggravation or mitigation and the

 

 

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1    existence of any factors indicating that the permit should
2    be conditioned or modified.
3    Upon receipt of a notice of violation, the Director shall
4conduct his investigation and may affirm, vacate or modify the
5notice of violation. In determining whether to take actions in
6addition to remedial action necessary to abate a violation,
7the Director shall consider the person's or permittee's
8history of previous violations including violations at other
9locations and under other permits, the seriousness of the
10violation including any irreparable harm to the environment or
11damage to property, the degree of culpability of the person or
12permittee and the existence of any additional conditions or
13factors in aggravation or mitigation including information
14provided by the person or permittee.
15    The Director shall serve the person or permittee with his
16decision at the conclusion of the investigation. Modification
17of the notice of violation may include:
18        1. any different or additional remedial action
19    required to abate the violation and the time within which
20    the violation must be abated;
21        2. the assessment of civil penalties not to exceed
22    $5,000 for each and every falsification or misstatement of
23    information and civil penalties not to exceed $4,000 per
24    and $1,000 a day for each and every act of violation not
25    including a falsification or misstatement of information;
26        3. probationary or permanent modification or

 

 

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1    conditions on the permit which may include special
2    monitoring or reporting requirements; and
3        4. revocation of the permit.
4    The Director's decision shall provide that the person or
5permittee has the right to request a hearing.
6    The Director's decision affirming, vacating or modifying
7the notice of violation shall be considered served when mailed
8by first class mail to the person or permittee at his last
9known address.
10    A person or permittee shall have 30 days from the date of
11service of the Director's decision to request a hearing. If
12the Director's decision includes the assessment of a civil
13penalty, the person or permittee charged with the penalty
14shall pay the penalty in full or, if the person or permittee
15wishes to contest either the amount of the penalty or the fact
16of the violation, submit the assessed amount, with the request
17for a hearing, to be held in escrow. The filing of a request
18for a hearing shall not operate as a stay of the Director's
19decision. All civil penalties finally assessed and paid to the
20Department shall be deposited in the Underground Resources
21Conservation Enforcement Fund.
22    Any person who willfully or knowingly authorized, ordered,
23or carried out any violation cited in the Director's decision
24shall be subject to the same actions, including civil
25penalties, which may be imposed on the person or permittee
26under this Section.

 

 

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1    Upon receipt of a request, the Department shall provide an
2opportunity for a formal hearing upon not less than 5 days
3notice. The hearing shall be conducted by the Director or
4anyone designated by him for such purpose, and shall be
5located and conducted in accordance with the rules of the
6Department. Failure of the person or permittee to timely
7request a hearing or, if a civil penalty has been assessed, to
8timely tender the assessed civil penalty, shall constitute a
9waiver of all legal rights to contest the Director's decision,
10including the amount of any civil penalty. Within 30 days of
11the close of the hearing record or expiration of the time to
12request a hearing, the Department shall issue a final
13administrative order.
14    If, at the expiration of the period of time originally
15fixed in the Director's decision or in any subsequent
16extension of time granted by the Department, the Department
17finds that the violation has not been abated, it may
18immediately order the cessation of operations or the portions
19thereof relevant to the violation. Such cessation order shall
20be served in the manner and within the time prescribed in
21Section 19.1 of this Act.
22    Pending the holding of any hearing or entry of a final
23administrative order under this Section, the person or
24permittee to whom the cessation order was issued may file a
25written request for temporary relief subject to the same terms
26and conditions as are provided for in Section 19.1 of this Act.

 

 

10400SB3113ham001- 23 -LRB104 19645 CCC 38184 a

1    If the Department finds that a person or permittee has
2failed to comply with a final administrative order, the
3Department may immediately order the cessation of operations
4or the portions thereof relevant to the final administrative
5order. Such cessation order shall be served in the manner and
6within the time prescribed in Section 19.1 of this Act. The
7Department shall commence a hearing within 5 days after
8issuance of a cessation order and shall conclude such hearing
9without appreciable delay. At the hearing the Department shall
10have the burden of proving that the person or permittee has not
11complied with the final administrative order. A cessation
12order issued under this paragraph shall continue in effect
13until modified, vacated, or terminated by the Department.
14    The Department shall refuse to issue a permit or permits,
15and shall revoke any permit or permits previously issued if:
16        (1) the applicant has falsified or otherwise misstated
17    any information on or relative to the permit application;
18        (2) the applicant has failed to abate a violation of
19    the Act specified in a final administrative decision of
20    the Department;
21        (3) an officer, director, partner, or person with an
22    interest in the applicant exceeding 5% failed to abate a
23    violation of the Act specified in a final administrative
24    decision of the Department; or
25        (4) the applicant is an officer, director, partner, or
26    person with an interest exceeding 5% in another entity

 

 

10400SB3113ham001- 24 -LRB104 19645 CCC 38184 a

1    that has failed to abate a violation of the Act specified
2    in a final administrative decision of the Department.
3(Source: P.A. 99-137, eff. 1-1-16.)
 
4    (225 ILCS 725/8e)
5    Sec. 8e. Temporary abandonment status fees.
6    (a) The Department shall assess and collect annual fees of
7$100 per well for each well that is in temporary abandonment
8status.
9    (b) All annual fees collected pursuant to subsection (a)
10shall be deposited as follows:
11        (1) one-half of all such fees shall be deposited into
12    placed in the Plugging and Restoration Fund; and
13        (2) one-half of all such fees so deposited shall be
14    used solely for placed in the Landowner Grant Program.
15(Source: P.A. 102-1017, eff. 1-1-23.)
 
16    (225 ILCS 725/14)  (from Ch. 96 1/2, par. 5420)
17    Sec. 14. Each application for a permit to drill, deepen,
18convert, or amend shall be accompanied by the required fee of
19$400. The fee for an application for a permit to oil lease road
20shall be $150. A fee of $75 for the first 100 wells and $50 for
21each well in excess of 100 shall be paid by the new owner for
22each transfer of well ownership. Except for the assessments
23required to be deposited in the Plugging and Restoration Fund
24under Section 19.7 of this Act and any other deposits required

 

 

10400SB3113ham001- 25 -LRB104 19645 CCC 38184 a

1to be deposited in the Plugging and Restoration Fund under
2this Act, all fees assessed and collected under this Act shall
3be deposited in the Underground Resources Conservation
4Enforcement Fund. The moneys monies deposited into the
5Plugging and Restoration Fund or the Underground Resources
6Conservation Enforcement Fund under this Section or deposited
7into the Plugging and Restoration Fund under Section 26 shall
8not be subject to administrative charges or chargebacks unless
9otherwise authorized by this Act.
10    On and after July 1, 2022, any fees that are created by or
11increased by this amendatory Act of the 102nd General Assembly
12in this Section shall be deposited into the Plugging and
13Restoration Fund.
14(Source: P.A. 102-1017, eff. 1-1-23.)
 
15    (225 ILCS 725/19.10 new)
16    Sec. 19.10. Leaking previously plugged well.
17    (a) If any oil or Class II fluids are potentially leaking
18into the fresh water zones or to the surface, as determined by
19geologic and field investigation, through a well plugged under
20the supervision of the Department, the Department shall notify
21the last permittee of record for the well when the well was
22last plugged. The last permittee shall then undertake the
23necessary actions to comply with this Section. If the last
24permittee no longer exists, cannot be located, does not take
25the necessary actions, or does not diligently pursue the

 

 

10400SB3113ham001- 26 -LRB104 19645 CCC 38184 a

1necessary actions, then the current permittee of the lease
2where the well is located shall take the necessary actions.
3The current permittee, if required to undertake any
4containment or plugging operations pursuant to this Section,
5shall have a right of action against the last permittee of
6record for the well when the well was last plugged for the
7reasonable cost and expense incurred in plugging, replugging,
8repairing, or restoring the well and shall have a lien
9enforceable upon the interest of the obligated persons in
10accordance with Section 19.5. Pending plugging of the well,
11all injection wells within a quarter-mile radius of the
12leaking well shall be shut in until the leaking well is
13plugged. The leaking or previously leaking well shall be
14plugged, regardless of well status at the time of plugging.
15    (b) If the current permittee of the lease is required to
16undertake any containment actions pursuant to this Section and
17does not take the required actions to contain the leaking
18fluids within 24 hours after notification by the Department,
19or within the time frame of any extensions granted by the
20Department because of extenuating circumstances, such as
21weather conditions, the current permittee shall not operate
22any wells on the lease where the leaking well is located until
23all required actions have been taken and may be issued a notice
24of violation and assessed a civil penalty in accordance with
25this Act and administrative rule.
 

 

 

10400SB3113ham001- 27 -LRB104 19645 CCC 38184 a

1    (225 ILCS 725/26)  (from Ch. 96 1/2, par. 5456)
2    Sec. 26. (a) Any person who violates any provision of this
3Act or any valid rule, regulation, permit or order of the
4Department made hereunder, or who repeats or continues the
5violation thereof, shall be subject to a civil penalty not to
6exceed:
7        (1) $1,000 a day for each and every act of violation
8    lasting 90 days or less.
9        (2) $2,000 a day for any violation lasting more than
10    90 days but less than 180 days.
11        (3) $4,000 a day for any violation lasting 180 days or
12    more.
13    Any civil penalties that are assessed in excess of $1,000
14per day shall be deposited into the Plugging and Restoration
15Fund.
16    Civil penalties may not be assessed until notice has been
17sent to the permittee. Such notice may be sent electronically
18at the time the notice of violation is sent to the Springfield
19office of the Department.
20    A permittee may notify the Department if an extraordinary
21circumstance prevents abatement for which civil penalties are
22sought to be assessed against the permittee. If the permittee
23notifies the Department, the permittee shall then provide
24evidence of the extraordinary circumstance to the Department
25when such extraordinary circumstance has terminated. The
26assessment of a civil penalty shall not begin until the

 

 

10400SB3113ham001- 28 -LRB104 19645 CCC 38184 a

1extraordinary circumstance terminates. An extraordinary
2circumstance shall include, but not be limited to, roads being
3posted, wet field conditions, or flooding that prevents the
4movement of equipment for the abatement.
5    (b) Any person willfully wilfully aiding or abetting any
6other person in the violation of any provision of this Act, or
7any rule, regulation and order made hereunder, shall be
8subject to the same penalties as are prescribed herein for the
9violation by such other person.
10(Source: P.A. 85-1334.)".