Full Text of HB2264 98th General Assembly
HB2264ham001 98TH GENERAL ASSEMBLY | Rep. Brad E. Halbrook Filed: 3/19/2013
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| 1 | | AMENDMENT TO HOUSE BILL 2264
| 2 | | AMENDMENT NO. ______. Amend House Bill 2264 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 5. The Illinois Oil and Gas Act is amended by | 5 | | changing Section 6 and by adding Section 8d as follows:
| 6 | | (225 ILCS 725/6) (from Ch. 96 1/2, par. 5409)
| 7 | | Sec. 6.
The Department shall have the authority to conduct | 8 | | hearings and
to make such reasonable rules as may be necessary | 9 | | from time to time in the
proper administration and enforcement | 10 | | of this Act, including the adoption
of rules and the holding of | 11 | | hearings for the following purposes:
| 12 | | (1) To require the drilling, casing and plugging of | 13 | | wells to be done in
such a manner as to prevent the | 14 | | migration of oil or gas from one stratum to
another; to | 15 | | prevent the intrusion of water into oil, gas or coal | 16 | | strata;
to prevent the pollution of fresh water supplies by |
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| 1 | | oil, gas or salt
water.
| 2 | | (2) To require the person desiring or proposing to | 3 | | drill, deepen or
convert any well for the exploration or | 4 | | production of
oil or gas, for injection or water supply in | 5 | | connection with
enhanced recovery projects, for the | 6 | | disposal of salt water, brine, or other
oil or gas field | 7 | | wastes, or for input, withdrawal, or observation in
| 8 | | connection with the storage of natural gas or other liquid | 9 | | or gaseous
hydrocarbons before commencing the drilling, | 10 | | deepening or
conversion of any such well, to make | 11 | | application to the Department upon
such form as the | 12 | | Department may prescribe and to comply with the provisions
| 13 | | of this Section. The drilling, deepening or conversion of | 14 | | any well is
hereby prohibited until such application is | 15 | | made and the applicant is
issued a permit therefor as | 16 | | provided by this Act. Each application for a
well permit | 17 | | shall include the following: (A) The exact location of the
| 18 | | well, (B) the name and address of the manager, operator, | 19 | | contractor,
driller, or any other person responsible for | 20 | | the conduct of drilling
operations, (C) the proposed depth | 21 | | of the well, (D) lease ownership
information, and (E) such | 22 | | other relevant information as the Department may
deem | 23 | | necessary or convenient to effectuate the purposes of this | 24 | | Act.
| 25 | | Additionally, each applicant who has not been issued a | 26 | | permit that is
of record on the effective date of this |
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| 1 | | amendatory Act of 1991, or who has
not thereafter made | 2 | | payments of assessments under Section 19.7 of this Act
for | 3 | | at least 2 consecutive years preceding the application, | 4 | | shall execute,
as principal, and file with the Department a | 5 | | bond, executed by a surety
authorized to transact business | 6 | | in this State, in an amount estimated to
cover the cost of | 7 | | plugging the well and restoring the well site, but not to
| 8 | | exceed $5000, as determined by the Department for each | 9 | | well, or a blanket
bond in an amount not to exceed $100,000 | 10 | | for all wells, before drilling,
deepening, converting, or | 11 | | operating any well for which a permit is required
that has | 12 | | not previously been plugged and abandoned in accordance | 13 | | with the
Act. The Department shall release the bond if the | 14 | | well, or all wells in the
case of a blanket bond, is not | 15 | | completed but is plugged and the well site
restored in | 16 | | accordance with the Department's rules or is completed in
| 17 | | accordance with the Department's rules and the permittee | 18 | | pays assessments
to the Department in accordance with | 19 | | Section 19.7 of this Act for 2
consecutive years.
| 20 | | In lieu of a surety bond, the applicant may provide | 21 | | cash,
certificates of deposit, or irrevocable letters of | 22 | | credit under such terms
and conditions as the Department | 23 | | may provide by rule.
| 24 | | The sureties on all bonds in effect on the effective | 25 | | date of this
amendatory Act of 1991 shall remain liable as | 26 | | sureties in accordance with
their undertakings until |
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| 1 | | released by the Department from further liability
under the | 2 | | Act. The principal on each bond in effect on the effective | 3 | | date
of this amendatory Act of 1991 shall be released from | 4 | | the obligation of
maintaining the bond if either the well | 5 | | covered by a surety bond has been
plugged and the well site | 6 | | restored in accordance with the Department's
rules or the | 7 | | principal of the surety has paid the initial assessment in
| 8 | | accordance with Section 19.7 and no well or well site | 9 | | covered by the surety
bond is in violation of the Act.
| 10 | | No permit shall be issued to a corporation incorporated | 11 | | outside of
Illinois until the corporation has been | 12 | | authorized to do business in Illinois.
| 13 | | No permit shall be issued to an individual, | 14 | | partnership, or other
unincorporated entity that is not a | 15 | | resident of Illinois until that individual,
partnership, | 16 | | or other unincorporated entity has irrevocably consented | 17 | | to be
sued in Illinois.
| 18 | | (3) To require the person assigning, transferring, or | 19 | | selling any well
for which a permit is required under this | 20 | | Act to notify the Department of
the change of ownership. | 21 | | The notification shall be on a form prescribed by
the | 22 | | Department, shall be executed by the current permittee and | 23 | | by the new
permittee, or their authorized representatives, | 24 | | and shall be filed with the
Department within 30 days after | 25 | | the effective date of the assignment,
transfer or sale. | 26 | | Within the 30 day notification period and prior to
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| 1 | | operating the well, the new permittee shall pay the | 2 | | required well transfer
fee and, where applicable, file with | 3 | | the Department the bond required under
subsection (2) of | 4 | | this Section.
| 5 | | (4) To require the filing with the State Geological | 6 | | Survey
of all geophysical logs, a well drilling
report and | 7 | | drill cuttings or cores, if cores are required,
within 90 | 8 | | days after drilling ceases; and to file a completion report
| 9 | | with the Department within 30 days after the date of first | 10 | | production
following initial drilling or any reworking, or | 11 | | after the plugging of the
well, if a dry hole. A copy of | 12 | | each completion report submitted to the
Department shall be | 13 | | delivered to the State Geological Survey. The
Department | 14 | | and the State Geological Survey shall keep the reports
| 15 | | confidential, if requested in writing by the permittee, for | 16 | | 2 years after
the date the permit is issued by the | 17 | | Department. This confidentiality
requirement shall not | 18 | | prohibit the use of the report for research purposes,
| 19 | | provided the State Geological Survey does not publish | 20 | | specific data or
identify the well to which the completion | 21 | | report pertains.
| 22 | | (5) To prevent "blowouts", "caving" and "seepage" in | 23 | | the same sense that
conditions indicated by such terms are | 24 | | generally understood in the oil and
gas business.
| 25 | | (6) To prevent fires.
| 26 | | (7) To ascertain and identify the ownership of all oil |
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| 1 | | and gas wells,
producing leases, refineries, tanks, | 2 | | plants, structures, and all storage
and transportation | 3 | | equipment and facilities.
| 4 | | (8) To regulate the use of any enhanced recovery method | 5 | | in oil pools
and oil fields.
| 6 | | (9) To regulate or prohibit the use of vacuum.
| 7 | | (10) To regulate the spacing of wells, the
issuance of | 8 | | permits, and the establishment of drilling units.
| 9 | | (11) To regulate directional drilling of oil or gas | 10 | | wells.
| 11 | | (12) To regulate the plugging of wells.
| 12 | | (13) To require that wells for which no logs or
| 13 | | unsatisfactory logs are supplied shall be completely | 14 | | plugged with cement
from bottom to top.
| 15 | | (14) To require a description in such form as is
| 16 | | determined by the Department of the method of well plugging | 17 | | for each
well, indicating the character of material used | 18 | | and the positions and
dimensions of each plug.
| 19 | | (15) To prohibit waste, as defined in this Act.
| 20 | | (16) To require the keeping of such records, the | 21 | | furnishing of such
relevant information and the | 22 | | performance of such tests as the Department
may deem | 23 | | necessary to carry into effect the purposes of this Act.
| 24 | | (17) To regulate the disposal of salt or | 25 | | sulphur-bearing water and any
oil field waste produced in | 26 | | the operation of any oil or gas well.
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| 1 | | (18) To prescribe rules, conduct inspections and | 2 | | require compliance with
health and safety standards for the | 3 | | protection of persons working
underground in connection | 4 | | with any oil and gas operations. For the
purposes of this | 5 | | paragraph, oil and gas operations include drilling or
| 6 | | excavation, production operations, plugging or filling in | 7 | | and sealing, or
any other work requiring the presence of | 8 | | workers in shafts or excavations
beneath the surface of the | 9 | | earth. Rules promulgated by the Department may
include | 10 | | minimum qualifications of persons performing tasks | 11 | | affecting the
health and safety of workers underground, | 12 | | minimum standards for the
operation and maintenance of | 13 | | equipment, and safety procedures and
precautions, and | 14 | | shall conform, as nearly as practicable, to corresponding
| 15 | | qualifications, standards and procedures prescribed under | 16 | | The Coal Mining Act.
| 17 | | (19) To deposit the amount of any forfeited surety bond | 18 | | or other
security in the Plugging and Restoration Fund, a | 19 | | special fund in the State
treasury which is hereby created; | 20 | | to deposit into the Fund any amounts
collected, reimbursed | 21 | | or recovered by the Department under Sections 19.5,
19.6 | 22 | | and 19.7 of this Act; to accept, receive, and
deposit into | 23 | | the Fund any grants, gifts or other funds which may be made
| 24 | | available from public or private sources and all earnings | 25 | | received from
investment of monies in the Fund; and to make | 26 | | expenditures from the Fund
for the purposes of plugging, |
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| 1 | | replugging or repairing any well, and
restoring the site of | 2 | | any well, determined by the Department to be
abandoned or | 3 | | ordered by the Department to be plugged, replugged, | 4 | | repaired
or restored under Sections 8a, 19 or 19.1 of this | 5 | | Act, including
expenses in administering the Fund.
| 6 | | (20) To regulate the application of oil field brine | 7 | | under the pilot program authorized by Section 8d. | 8 | | For the purposes of this Act, the State Geological Survey | 9 | | shall
co-operate with the Department in making available its | 10 | | scientific and
technical information on the oil and gas | 11 | | resources of the State, and the
Department shall in turn | 12 | | furnish a copy to the State Geological Survey
of all drilling | 13 | | permits as issued, and such other drilling and operating
data | 14 | | received or secured by the Department which are pertinent to
| 15 | | scientific research on the State's mineral resources.
| 16 | | (Source: P.A. 86-205; 86-364; 86-1177; 87-744.)
| 17 | | (225 ILCS 725/8d new) | 18 | | Sec. 8d. Oil brine application pilot project. | 19 | | (a) The Department shall conduct a 2-year pilot project in | 20 | | Cumberland County to evaluate the feasibility of utilizing oil | 21 | | field brine for the purpose of ice and dust control or soil | 22 | | stabilization. | 23 | | (b) The Department shall establish standards for the amount | 24 | | and kind of brine that may be discharged under the pilot | 25 | | project. |
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| 1 | | (c) Brine shall only be applied at a frequency necessary to | 2 | | control dust and ice in order to protect the public health, | 3 | | safety, and welfare. | 4 | | (d) Cumberland County employees shall only discharge brine | 5 | | for dust control and soil stabilization in accordance with the | 6 | | following criteria: | 7 | | (1) Brine shall be applied with vehicular equipment | 8 | | dedicated solely to brine application or to fresh water | 9 | | transportation. Brine shall be applied at a maximum rate of | 10 | | 0.25 gallons per square yard for dust control and 1 gallon | 11 | | per square yard for soil stabilization. | 12 | | (2) Brine shall not be applied to the surface of roads, | 13 | | parking lots, and other land more than once per month, | 14 | | unless water and traffic conditions require additional | 15 | | applications to suppress dust. | 16 | | (3) Brine shall not be applied to the surface of roads | 17 | | being used as a detour and on other areas during | 18 | | construction as necessary to control dust more than 6 times | 19 | | per year. | 20 | | (4) Brine shall be applied to roads and parking areas | 21 | | with a spreader bar. These devices shall be constructed to | 22 | | deliver a uniform application of brine over a width of at | 23 | | least 8 feet. | 24 | | (5) Brine shall be applied in a manner designed to | 25 | | prevent runoff. | 26 | | (e) Cumberland County employees shall only discharge brine |
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| 1 | | for ice control in accordance with the following criteria: | 2 | | (1) Brine shall be applied only on paved roads or paved | 3 | | parking lots. | 4 | | (2) Brine shall be applied at a maximum rate of 500 | 5 | | gallons per lane mile of road or 400 gallons per acre of | 6 | | land. | 7 | | (3) Brine shall be applied only when the air | 8 | | temperature is above 20 degrees Fahrenheit, unless used for | 9 | | pre-wetting solid salt. | 10 | | (4) Brine shall be applied with equipment designed to | 11 | | direct the discharge to the center of the pavement or high | 12 | | sides of curves. | 13 | | (f) Cumberland County employees shall use brine | 14 | | application measurements to ensure compliance with this | 15 | | Section, and as approved by the Department. | 16 | | (g) Cumberland County shall keep records of the use of | 17 | | brine and make such records available for review by the | 18 | | Department upon request. These records shall include: | 19 | | (1) the location, description, volume, and source or | 20 | | sources of the brine; and | 21 | | (2) a brine application log, including: | 22 | | (A) the driver's name; | 23 | | (B) the loading date and time and source of brine; | 24 | | (C) the dates of brine application; | 25 | | (D) the township where brine was applied; | 26 | | (E) the name of the road or roads or other land |
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| 1 | | areas where brine was applied and the number of gallons | 2 | | of brine that were applied; | 3 | | (F) for application on roads, the distance brine | 4 | | was applied between startup and stopping point to the | 5 | | closest one-tenth mile; and | 6 | | (G) documentation of the permit approving | 7 | | application. | 8 | | (h) The records for the previous 2 weeks, as described in | 9 | | this Section, shall be maintained on the vehicle for inspection | 10 | | by the Department or a law enforcement agent. | 11 | | (i) The records described in this Section shall be | 12 | | maintained by Cumberland County for a period of 3 calendar | 13 | | years from the date they were generated and shall be available | 14 | | for inspection by the Department or a law enforcement agent. | 15 | | (j) Cumberland County shall immediately report to the | 16 | | Department and the Illinois Environmental Protection Agency | 17 | | any release of any polluting material that occurs to the | 18 | | surface waters or groundwater of the State in relation to the | 19 | | activities authorized by the permit. | 20 | | (k) Nothing in this Section shall be construed to relieve | 21 | | Cumberland County from any civil or criminal liability. | 22 | | (l) The provisions of this Section do not convey any | 23 | | property rights in either real or personal property or any | 24 | | exclusive privileges. | 25 | | (m) If at any point during the pilot project the Department | 26 | | finds that Cumberland County or its agents have violated this |
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| 1 | | Section or that the oil field brine is causing environmental | 2 | | damage where applied, the Department may terminate the pilot | 3 | | project. | 4 | | (n) The Department may adopt any rules necessary for the | 5 | | administration of this Section. ".
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