Full Text of HB2264 098th General Assembly
HB2264 98TH GENERAL ASSEMBLY |
| | 98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014 HB2264 Introduced , by Rep. Brad E. Halbrook SYNOPSIS AS INTRODUCED: |
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225 ILCS 725/6 | from Ch. 96 1/2, par. 5409 |
225 ILCS 725/8d new | |
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Amends the Illinois Oil and Gas Act. Provides that no person shall apply, discharge, or otherwise dispose of oil field brine for any reason, including, but not limited to, application for ice and dust control or soil stabilization, without first securing a permit granted by the Department of Natural Resources. Authorizes the Department to regulate the application of oil field brines and establish a permitting system for such application. Creates guidelines for the application of oil field brine. Provides that any permittee shall keep records of the use of brine and make such records available for review by the Department upon request. Makes other changes.
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| 1 | | AN ACT concerning regulation.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 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 | 17 | | oil, gas or salt
water.
| 18 | | (2) To require the person desiring or proposing to | 19 | | drill, deepen or
convert any well for the exploration or | 20 | | production of
oil or gas, for injection or water supply in | 21 | | connection with
enhanced recovery projects, for the | 22 | | disposal of salt water, brine, or other
oil or gas field | 23 | | wastes, or for input, withdrawal, or observation in
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| 1 | | connection with the storage of natural gas or other liquid | 2 | | or gaseous
hydrocarbons before commencing the drilling, | 3 | | deepening or
conversion of any such well, to make | 4 | | application to the Department upon
such form as the | 5 | | Department may prescribe and to comply with the provisions
| 6 | | of this Section. The drilling, deepening or conversion of | 7 | | any well is
hereby prohibited until such application is | 8 | | made and the applicant is
issued a permit therefor as | 9 | | provided by this Act. Each application for a
well permit | 10 | | shall include the following: (A) The exact location of the
| 11 | | well, (B) the name and address of the manager, operator, | 12 | | contractor,
driller, or any other person responsible for | 13 | | the conduct of drilling
operations, (C) the proposed depth | 14 | | of the well, (D) lease ownership
information, and (E) such | 15 | | other relevant information as the Department may
deem | 16 | | necessary or convenient to effectuate the purposes of this | 17 | | Act.
| 18 | | Additionally, each applicant who has not been issued a | 19 | | permit that is
of record on the effective date of this | 20 | | amendatory Act of 1991, or who has
not thereafter made | 21 | | payments of assessments under Section 19.7 of this Act
for | 22 | | at least 2 consecutive years preceding the application, | 23 | | shall execute,
as principal, and file with the Department a | 24 | | bond, executed by a surety
authorized to transact business | 25 | | in this State, in an amount estimated to
cover the cost of | 26 | | plugging the well and restoring the well site, but not to
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| 1 | | exceed $5000, as determined by the Department for each | 2 | | well, or a blanket
bond in an amount not to exceed $100,000 | 3 | | for all wells, before drilling,
deepening, converting, or | 4 | | operating any well for which a permit is required
that has | 5 | | not previously been plugged and abandoned in accordance | 6 | | with the
Act. The Department shall release the bond if the | 7 | | well, or all wells in the
case of a blanket bond, is not | 8 | | completed but is plugged and the well site
restored in | 9 | | accordance with the Department's rules or is completed in
| 10 | | accordance with the Department's rules and the permittee | 11 | | pays assessments
to the Department in accordance with | 12 | | Section 19.7 of this Act for 2
consecutive years.
| 13 | | In lieu of a surety bond, the applicant may provide | 14 | | cash,
certificates of deposit, or irrevocable letters of | 15 | | credit under such terms
and conditions as the Department | 16 | | may provide by rule.
| 17 | | The sureties on all bonds in effect on the effective | 18 | | date of this
amendatory Act of 1991 shall remain liable as | 19 | | sureties in accordance with
their undertakings until | 20 | | released by the Department from further liability
under the | 21 | | Act. The principal on each bond in effect on the effective | 22 | | date
of this amendatory Act of 1991 shall be released from | 23 | | the obligation of
maintaining the bond if either the well | 24 | | covered by a surety bond has been
plugged and the well site | 25 | | restored in accordance with the Department's
rules or the | 26 | | principal of the surety has paid the initial assessment in
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| 1 | | accordance with Section 19.7 and no well or well site | 2 | | covered by the surety
bond is in violation of the Act.
| 3 | | No permit shall be issued to a corporation incorporated | 4 | | outside of
Illinois until the corporation has been | 5 | | authorized to do business in Illinois.
| 6 | | No permit shall be issued to an individual, | 7 | | partnership, or other
unincorporated entity that is not a | 8 | | resident of Illinois until that individual,
partnership, | 9 | | or other unincorporated entity has irrevocably consented | 10 | | to be
sued in Illinois.
| 11 | | (3) To require the person assigning, transferring, or | 12 | | selling any well
for which a permit is required under this | 13 | | Act to notify the Department of
the change of ownership. | 14 | | The notification shall be on a form prescribed by
the | 15 | | Department, shall be executed by the current permittee and | 16 | | by the new
permittee, or their authorized representatives, | 17 | | and shall be filed with the
Department within 30 days after | 18 | | the effective date of the assignment,
transfer or sale. | 19 | | Within the 30 day notification period and prior to
| 20 | | operating the well, the new permittee shall pay the | 21 | | required well transfer
fee and, where applicable, file with | 22 | | the Department the bond required under
subsection (2) of | 23 | | this Section.
| 24 | | (4) To require the filing with the State Geological | 25 | | Survey
of all geophysical logs, a well drilling
report and | 26 | | drill cuttings or cores, if cores are required,
within 90 |
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| 1 | | days after drilling ceases; and to file a completion report
| 2 | | with the Department within 30 days after the date of first | 3 | | production
following initial drilling or any reworking, or | 4 | | after the plugging of the
well, if a dry hole. A copy of | 5 | | each completion report submitted to the
Department shall be | 6 | | delivered to the State Geological Survey. The
Department | 7 | | and the State Geological Survey shall keep the reports
| 8 | | confidential, if requested in writing by the permittee, for | 9 | | 2 years after
the date the permit is issued by the | 10 | | Department. This confidentiality
requirement shall not | 11 | | prohibit the use of the report for research purposes,
| 12 | | provided the State Geological Survey does not publish | 13 | | specific data or
identify the well to which the completion | 14 | | report pertains.
| 15 | | (5) To prevent "blowouts", "caving" and "seepage" in | 16 | | the same sense that
conditions indicated by such terms are | 17 | | generally understood in the oil and
gas business.
| 18 | | (6) To prevent fires.
| 19 | | (7) To ascertain and identify the ownership of all oil | 20 | | and gas wells,
producing leases, refineries, tanks, | 21 | | plants, structures, and all storage
and transportation | 22 | | equipment and facilities.
| 23 | | (8) To regulate the use of any enhanced recovery method | 24 | | in oil pools
and oil fields.
| 25 | | (9) To regulate or prohibit the use of vacuum.
| 26 | | (10) To regulate the spacing of wells, the
issuance of |
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| 1 | | permits, and the establishment of drilling units.
| 2 | | (11) To regulate directional drilling of oil or gas | 3 | | wells.
| 4 | | (12) To regulate the plugging of wells.
| 5 | | (13) To require that wells for which no logs or
| 6 | | unsatisfactory logs are supplied shall be completely | 7 | | plugged with cement
from bottom to top.
| 8 | | (14) To require a description in such form as is
| 9 | | determined by the Department of the method of well plugging | 10 | | for each
well, indicating the character of material used | 11 | | and the positions and
dimensions of each plug.
| 12 | | (15) To prohibit waste, as defined in this Act.
| 13 | | (16) To require the keeping of such records, the | 14 | | furnishing of such
relevant information and the | 15 | | performance of such tests as the Department
may deem | 16 | | necessary to carry into effect the purposes of this Act.
| 17 | | (17) To regulate the disposal of salt or | 18 | | sulphur-bearing water and any
oil field waste produced in | 19 | | the operation of any oil or gas well.
| 20 | | (18) To prescribe rules, conduct inspections and | 21 | | require compliance with
health and safety standards for the | 22 | | protection of persons working
underground in connection | 23 | | with any oil and gas operations. For the
purposes of this | 24 | | paragraph, oil and gas operations include drilling or
| 25 | | excavation, production operations, plugging or filling in | 26 | | and sealing, or
any other work requiring the presence of |
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| 1 | | workers in shafts or excavations
beneath the surface of the | 2 | | earth. Rules promulgated by the Department may
include | 3 | | minimum qualifications of persons performing tasks | 4 | | affecting the
health and safety of workers underground, | 5 | | minimum standards for the
operation and maintenance of | 6 | | equipment, and safety procedures and
precautions, and | 7 | | shall conform, as nearly as practicable, to corresponding
| 8 | | qualifications, standards and procedures prescribed under | 9 | | The Coal Mining Act.
| 10 | | (19) To deposit the amount of any forfeited surety bond | 11 | | or other
security in the Plugging and Restoration Fund, a | 12 | | special fund in the State
treasury which is hereby created; | 13 | | to deposit into the Fund any amounts
collected, reimbursed | 14 | | or recovered by the Department under Sections 19.5,
19.6 | 15 | | and 19.7 of this Act; to accept, receive, and
deposit into | 16 | | the Fund any grants, gifts or other funds which may be made
| 17 | | available from public or private sources and all earnings | 18 | | received from
investment of monies in the Fund; and to make | 19 | | expenditures from the Fund
for the purposes of plugging, | 20 | | replugging or repairing any well, and
restoring the site of | 21 | | any well, determined by the Department to be
abandoned or | 22 | | ordered by the Department to be plugged, replugged, | 23 | | repaired
or restored under Sections 8a, 19 or 19.1 of this | 24 | | Act, including
expenses in administering the Fund.
| 25 | | (20) To regulate the application of oil field brine. | 26 | | For the purposes of this Act, the State Geological Survey |
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| 1 | | shall
co-operate with the Department in making available its | 2 | | scientific and
technical information on the oil and gas | 3 | | resources of the State, and the
Department shall in turn | 4 | | furnish a copy to the State Geological Survey
of all drilling | 5 | | permits as issued, and such other drilling and operating
data | 6 | | received or secured by the Department which are pertinent to
| 7 | | scientific research on the State's mineral resources.
| 8 | | (Source: P.A. 86-205; 86-364; 86-1177; 87-744.)
| 9 | | (225 ILCS 725/8d new) | 10 | | Sec. 8d. Oil brine application permits. | 11 | | (a) The Department is authorized to issue permits for the | 12 | | application of oil field brine and to regulate such | 13 | | application. | 14 | | (b) The Department shall establish permit standards and | 15 | | qualifications and standards for the amount and kind of brine | 16 | | that may be discharged under the permits. | 17 | | (c) No person shall apply, discharge, or otherwise dispose | 18 | | of oil field brines for any reason, including, but not limited | 19 | | to, application for ice and dust control or soil stabilization, | 20 | | without first securing a permit granted by the Department. | 21 | | (d) Brine shall only be applied at a frequency necessary to | 22 | | control dust and ice in order to protect the public health, | 23 | | safety, and welfare. | 24 | | (e) Permittees shall only discharge brine for dust control | 25 | | and soil stabilization in accordance with the following |
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| 1 | | criteria: | 2 | | (1) Brine shall be applied with vehicular equipment | 3 | | dedicated solely to brine application or to fresh water | 4 | | transportation. Brine shall be applied at a maximum rate of | 5 | | 0.25 gallons per square yard for dust control and 1 gallon | 6 | | per square yard for soil stabilization. | 7 | | (2) Brine shall not be applied to the surface of roads, | 8 | | parking lots, and other land more than once per month, | 9 | | unless water and traffic conditions require additional | 10 | | applications to suppress dust. | 11 | | (3) Brine shall not be applied to the surface of roads | 12 | | being used as a detour and on other areas during | 13 | | construction as necessary to control dust more than 6 times | 14 | | per year. | 15 | | (4) Brine shall be applied to roads and parking areas | 16 | | with a spreader bar. These devices shall be constructed to | 17 | | deliver a uniform application of brine over a width of at | 18 | | least 8 feet. | 19 | | (5) Brine shall be applied in a manner designed to | 20 | | prevent runoff. | 21 | | (f) Permittees shall only discharge brine for ice control | 22 | | in accordance with the following criteria: | 23 | | (1) Brine shall be applied only on paved roads or paved | 24 | | parking lots. | 25 | | (2) Brine shall be applied at a maximum rate of 500 | 26 | | gallons per lane mile of road or 400 gallons per acre of |
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| 1 | | land. | 2 | | (3) Brine shall be applied only when the air | 3 | | temperature is above 20 degrees Fahrenheit, unless used for | 4 | | pre-wetting solid salt. | 5 | | (4) Brine shall be applied with equipment designed to | 6 | | direct the discharge to the center of the pavement or high | 7 | | sides of curves. | 8 | | (g) The permittee shall use brine application measurements | 9 | | to ensure compliance with this Section, and as approved by the | 10 | | Department. | 11 | | (h) The permittee shall keep records of the use of brine | 12 | | and make such records available for review by the Department | 13 | | upon request. These records shall include: | 14 | | (1) the location, description, volume, and source or | 15 | | sources of the brine; and | 16 | | (2) a brine application log, including: | 17 | | (A) the driver's name; | 18 | | (B) the loading date and time and source of brine; | 19 | | (C) the dates of brine application; | 20 | | (D) the county and township where brine was | 21 | | applied; | 22 | | (E) the name of the road or roads or other land | 23 | | areas where brine was applied and the number of gallons | 24 | | of brine that were applied; | 25 | | (F) for application on roads, the distance brine | 26 | | was applied between startup and stopping point to the |
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| 1 | | closest one-tenth mile; and | 2 | | (G) documentation of the permit approving | 3 | | application. | 4 | | (i) The records for the previous 2 weeks, as described in | 5 | | this Section, shall be maintained on the vehicle for inspection | 6 | | by the Department or a law enforcement agent. | 7 | | (j) The records described in this Section shall be | 8 | | maintained by the discharger for a period of 3 calendar years | 9 | | from the date they were generated and shall be available for | 10 | | inspection by the Department or a law enforcement agent. | 11 | | (k) The permittee shall immediately report to the | 12 | | Department any release of any polluting material that occurs to | 13 | | the surface waters or groundwater of the State in relation to | 14 | | the activities authorized by the permit. | 15 | | (l) Nothing in the permit shall be construed to relieve the | 16 | | permittee from any civil or criminal liability. | 17 | | (m) The issuance of a permit under this Section does not | 18 | | convey any property rights in either real or personal property | 19 | | or any exclusive privileges. | 20 | | (n) The Department may adopt any rules necessary for the | 21 | | administration of this Section, including, but not limited to, | 22 | | rules concerning permit applications, permit fees, and | 23 | | violations of this Section.
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