SB0664 EngrossedLRB097 04427 RPM 44466 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 Illinois Oil and Gas Act is amended by
5adding Section 6.5 as follows:
6    (225 ILCS 725/6.5 new)
7    Sec. 6.5. Extraction of natural gas from shale using
8hydraulic fracturing.
9    (a) Each owner or operator that begins extracting natural
10gas from shale shall report to the Department the information
11specified in subsections (b), (c), and (d) within 30 days after
12hydraulic fracturing stimulation. The Director shall adopt
13rules that require, prior to such hydraulic fracturing, the
14owner or operator to perform a suitable mechanical integrity
15test of the casing or of the casing-tubing annulus or other
16mechanical integrity test methods using procedures that are
17established by administrative rule.
18    (b) The owner or operator shall provide geological names, a
19geological description, and the depth of the formation into
20which well stimulation fluids were injected.
21    (c) The owner or operator shall provide detailed
22information to the Director concerning the base stimulation
23fluid source. The owner, operator, or service company shall



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1also provide to the Director, for each stage of the well
2stimulation program, the following:
3        (1) each stimulation fluid identified by additive
4    type; and
5        (2) the chemical compound name and Chemical Abstracts
6    Service (CAS) number for each additive used.
7    (d) The owner or operator shall also provide a detailed
8description of the well stimulation design, which shall
10        (1) the surface treating pressure range;
11        (2) the maximum injection treating pressure; and
12        (3) the estimated or calculated fracture length and
13    fracture height.
14    (e) The Department shall post the information that it
15receives under subsections (b), (c), and (d) on its Internet
16website for a period of not less than 5 years.
17    (f) The injection of volatile organic compounds, such as
18benzene, toluene, ethylbenzene, and xylene, also known as BTEX
19compounds, or any petroleum distillates, into an underground
20source of drinking water is prohibited without exception. The
21proposed use of volatile organic compounds, such as benzene,
22toluene, ethylbenzene, and xylene, also known as BTEX
23compounds, or any petroleum distillates, for shale gas
24extraction using hydraulic fracturing into hydrocarbon bearing
25zones is only authorized with prior written approval of the
26Director. Produced water containing trace amounts of naturally



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1occurring petroleum distillates may be used as a stimulation
2fluid in hydrocarbon-bearing zones. Criteria for the
3authorization shall be established by the Department by rule.
4    (g) In addition to any other information that it must
5provide, the owner, operator, or service company shall provide
6the Director the following post well stimulation detail:
7        (1) the actual total well stimulation treatment volume
8    pumped;
9        (2) detail as to each fluid stage pumped, including
10    actual volume by fluid stage, proppant rate or
11    concentration, actual chemical additive name and type;
12        (3) the actual surface pressure and rate at the end of
13    each fluid stage and the actual flush volume, rate, and
14    final pump pressure; and
15        (4) the instantaneous shut-in pressure, and the actual
16    15-minute and 30-minute shut-in pressures when these
17    pressure measurements are available.
18    (h) During the well stimulation operation, the owner or
19operator shall monitor and record the annulus pressure at the
20bradenhead. If intermediate casing has been set on the well
21being stimulated, then the pressure in the annulus between the
22intermediate casing and the production casing shall also be
23monitored and recorded. A continuous record of the annulus
24pressure during the well stimulation shall be submitted.
25    (i) If, during the stimulation, the annulus pressure
26increases by more than 500 pounds per square inch gauge (psig)



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1compared to the pressure immediately preceding the
2stimulation, then the owner or operator shall verbally notify
3the Director as soon as practical but no later than 24 hours
4following the incident and must complete in a timely manner any
5corrective action identified by the Department. The owner or
6operator shall include a report containing all details
7pertaining to the incident, including corrective actions
9    (j) The owner or operator shall provide information to the
10Director as to the amounts, handling, and, if necessary,
11disposal at an identified appropriate disposal facility, or
12reuse of the well stimulation fluid load recovered during flow
13back, swabbing, or recovery from production facility vessels.
14Storage of that fluid shall be protective of an underground
15source of drinking water as demonstrated by the use of either
16tanks or lined pits.
17    (k) Nothing in this Section shall be construed to allow the
18Director to require the disclosure of trade secrets as defined
19in the Illinois Trade Secrets Act.
20    (l) The Department shall adopt all rules necessary to
21enforce this Section.
22    (m) This Section applies only to the extraction of natural
23gas from shale.