|
practice
of coal mining in the State of Illinois.
|
(c) Notwithstanding any provision of this Act or any other |
law to the contrary, the Department of Natural Resources may |
have within it an Office of Oil and Gas Resource Management, |
which may be responsible for the functions previously vested in |
the Department of Mines and Minerals relating to oil and gas |
resources, such other related functions and responsibilities |
as may be provided by law, and other functions and |
responsibilities at the discretion of the Department of Natural |
Resources. |
(Source: P.A. 89-50, eff. 7-1-95; 89-445, eff. 2-7-96.)
|
Section 10. The State Finance Act is amended by changing |
Section 5.832 as follows:
|
(30 ILCS 105/5.832) |
Sec. 5.832. The Oil and Gas Resource Management Mines and |
Minerals Regulatory Fund. |
(Source: P.A. 98-22, eff. 6-17-13; 98-756, eff. 7-16-14.)
|
Section 15. The Hydraulic Fracturing Regulatory Act is |
amended by changing Sections 1-35, 1-65 and 1-135 as follows:
|
(225 ILCS 732/1-35)
|
Sec. 1-35. High volume horizontal hydraulic fracturing |
permit application. |
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(a) Every applicant for a permit under this Act shall first |
register with the Department at least 30 days before applying |
for a permit. The Department shall make available a |
registration form within 90 days after the effective date of |
this Act. The registration form shall require the following |
information:
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(1) the name and address of the registrant and any |
parent, subsidiary, or affiliate thereof;
|
(2) disclosure of all findings of a serious violation |
or an equivalent violation under federal or state laws or |
regulations in the development or operation of an oil or |
gas exploration or production site via hydraulic |
fracturing by the applicant or any parent, subsidiary, or |
affiliate thereof within the previous 5 years; and
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(3) proof of insurance to cover injuries, damages, or |
loss related to pollution or diminution in the amount of at |
least $5,000,000, from an insurance carrier authorized, |
licensed, or permitted to do this insurance business in |
this State that holds at least an A- rating by A.M. Best & |
Co. or any comparable rating service.
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A registrant must notify the Department of any change in |
the information identified in paragraphs (1), (2), or (3) of |
this subsection (a) at least annually or upon request of the |
Department.
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(b) Every applicant for a permit under this Act must submit |
the following information to the Department on an application |
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form provided by the Department:
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(1) the name and address of the applicant and any |
parent, subsidiary, or affiliate thereof;
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(2) the proposed well name and address and legal |
description of the well site and its unit area;
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(3) a statement whether the proposed location of the |
well site is in compliance with the requirements of Section |
1-25 of this Act and a plat, which shows the proposed |
surface location of the well site, providing the distance |
in feet, from the surface location of the well site to the |
features described in subsection (a) of Section 1-25 of |
this Act;
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(4) a detailed description of the proposed well to be |
used for the high volume horizontal hydraulic fracturing |
operations including, but not limited to, the following |
information:
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(A) the approximate total depth to which the well |
is to be drilled or deepened;
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(B) the proposed angle and direction of the well;
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(C) the actual depth or the approximate depth at |
which the well to be drilled deviates from vertical;
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(D) the angle and direction of any nonvertical |
portion of the wellbore until the well reaches its |
total target depth or its actual final depth; and
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(E) the estimated length and direction of the |
proposed horizontal lateral or wellbore;
|
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(5) the estimated depth and elevation, according to the |
most recent publication of the Illinois State Geological |
Survey of Groundwater for the location of the well, of the |
lowest potential fresh water along the entire length of the |
proposed wellbore;
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(6) a detailed description of the proposed high volume |
horizontal hydraulic fracturing operations, including, but |
not limited to, the following:
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(A) the formation affected by the high volume |
horizontal hydraulic fracturing operations, including, |
but not limited to, geologic name and geologic |
description of the formation that will be stimulated by |
the operation;
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(B) the anticipated surface treating pressure |
range;
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(C) the maximum anticipated injection treating |
pressure;
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(D) the estimated or calculated fracture pressure |
of the producing and confining zones; and
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(E) the planned depth of all proposed perforations |
or depth to the top of the open hole section;
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(7) a plat showing all known previous wellbores within |
750 feet of any part of the horizontal wellbore that |
penetrated within 400 vertical feet of the formation that |
will be stimulated as part of the high volume horizontal |
hydraulic fracturing operations;
|
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(8) unless the applicant documents why the information |
is not available at the time the application is submitted, |
a chemical disclosure report identifying each chemical and |
proppant anticipated to be used in hydraulic fracturing |
fluid for each stage of the hydraulic fracturing operations |
including the following:
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(A) the total volume of water anticipated to be |
used in the hydraulic fracturing treatment of the well |
or the type and total volume of the base fluid |
anticipated to be used in the hydraulic fracturing |
treatment, if something other than water;
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(B) each hydraulic fracturing additive anticipated |
to be used in the hydraulic fracturing fluid, including |
the trade name, vendor, a brief descriptor of the |
intended use or function of each hydraulic fracturing |
additive, and the Material Safety Data Sheet (MSDS), if |
applicable;
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(C) each chemical anticipated to be intentionally |
added to the base fluid, including for each chemical, |
the Chemical Abstracts Service number, if applicable; |
and
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(D) the anticipated concentration in the base |
fluid, in percent by mass, of each chemical to be |
intentionally added to the base fluid;
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(9) a certification of compliance with the Water Use |
Act of 1983 and applicable regional water supply plans;
|
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(10) a fresh water withdrawal and management plan that |
shall include the following information:
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(A) the source of the water, such as surface or |
groundwater, anticipated to be used for water |
withdrawals, and the anticipated withdrawal location;
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(B) the anticipated volume and rate of each water |
withdrawal from each withdrawal location; |
(C) the anticipated months when water withdrawals |
shall be made from each withdrawal location;
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(D) the methods to be used to minimize water |
withdrawals as much as feasible; and
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(E) the methods to be used for surface water |
withdrawals to minimize adverse impact to aquatic |
life. |
Where a surface water source is wholly contained within |
a single property, and the owner of the property expressly |
agrees in writing to its use for water withdrawals, the |
applicant is not required to include this surface water |
source in the fresh water withdrawal and management plan;
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(11) a plan for the handling, storage, transportation, |
and disposal or reuse of hydraulic fracturing fluids and |
hydraulic fracturing flowback. The plan shall identify the |
specific Class II injection well or wells that will be used |
to dispose of the hydraulic fracturing flowback. The plan |
shall describe the capacity of the tanks to be used for the |
capture and storage of flowback and of the lined reserve |
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pit to be used, if necessary, to temporarily store any |
flowback in excess of the capacity of the tanks. |
Identification of the Class II injection well or wells |
shall be by name, identification number, and specific |
location and shall include the date of the most recent |
mechanical integrity test for each Class II injection well;
|
(12) a well site safety plan to address proper safety |
measures to be employed during high volume horizontal |
hydraulic fracturing operations for the protection of |
persons on the site as well as the general public. Within |
15 calendar days after submitting the permit application to |
the Department, the applicant must provide a copy of the |
plan to the county or counties in which hydraulic |
fracturing operations will occur. Within 5 calendar days of |
its receipt, the Department shall provide a copy of the |
well site safety plan to the Office of the State Fire |
Marshal;
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(13) a containment plan describing the containment |
practices and equipment to be used and the area of the well |
site where containment systems will be employed, and within |
5 calendar days of its receipt, the Department shall |
provide a copy of the containment plan to the Office of the |
State Fire Marshal;
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(14) a casing and cementing plan that describes the |
casing and cementing practices to be employed, including |
the size of each string of pipe, the starting point, and |
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depth to which each string is to be set and the extent to |
which each string is to be cemented;
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(15) a traffic management plan that identifies the |
anticipated roads, streets, and highways that will be used |
for access to and egress from the well site. The traffic |
management plan will include a point of contact to discuss |
issues related to traffic management. Within 15 calendar |
days after submitting the permit application to the |
Department, the applicant must provide a copy of the |
traffic management plan to the county or counties in which |
the well site is located, and within 5 calendar days of its |
receipt, the Department shall provide a copy of the traffic |
management plan to the Office of the State Fire Marshal;
|
(16) the names and addresses of all owners of any real |
property within 1,500 feet of the proposed well site, as |
disclosed by the records in the office of the recorder of |
the county or counties;
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(17) drafts of the specific public notice and general |
public notice as required by Section 1-40 of this Act;
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(18) a statement that the well site at which the high |
volume horizontal hydraulic fracturing operation will be |
conducted will be restored in compliance with Section |
240.1181 of Title 62 of the Illinois Administrative Code |
and Section 1-95 of this Act;
|
(19) proof of insurance to cover injuries, damages, or |
loss related to pollution in the amount of at least |
|
$5,000,000; and
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(20) any other relevant information which the |
Department may, by rule, require.
|
(c) Where an application is made to conduct high volume |
horizontal fracturing operations at a well site located within |
the limits of any city, village, or incorporated town, the |
application shall state the name of the city, village, or |
incorporated town and be accompanied with a certified copy of |
the official consent for the hydraulic fracturing operations to |
occur from the municipal authorities where the well site is |
proposed to be located. No permit shall be issued unless |
consent is secured and filed with the permit application. In |
the event that an amended location is selected, the original |
permit shall not be valid unless a new certified consent is |
filed for the amended location.
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(d) The hydraulic fracturing permit application shall be |
accompanied by a bond as required by subsection (a) of Section |
1-65 of this Act.
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(e) Each application for a permit under this Act shall |
include payment of a non-refundable fee of $13,500. Of this |
fee, $11,000 shall be deposited into the Oil and Gas Resource |
Management Mines and Minerals Regulatory Fund for the |
Department to use to administer and enforce this Act and |
otherwise support the operations and programs of the Office of |
Oil and Gas Resource Management Office of Mines and Minerals. |
The remaining $2,500 shall be deposited into the Illinois Clean |
|
Water Fund for the Agency to use to carry out its functions |
under this Act. The Department shall not initiate its review of |
the permit application until the applicable fee under this |
subsection (e) has been submitted to and received by the |
Department.
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(f) Each application submitted under this Act shall be |
signed, under the penalty of perjury, by the applicant or the |
applicant's designee who has been vested with the authority to |
act on behalf of the applicant and has direct knowledge of the |
information contained in the application and its attachments. |
Any person signing an application shall also sign an affidavit |
with the following certification:
|
"I certify, under penalty of perjury as provided by law |
and under penalty of refusal, suspension, or revocation of |
a high volume horizontal hydraulic fracturing permit, that |
this application and all attachments are true, accurate, |
and complete to the best of my knowledge.".
|
(g) The permit application shall be submitted to the |
Department in both electronic and hard copy format. The |
electronic format shall be searchable.
|
(h) The application for a high volume horizontal hydraulic |
fracturing permit may be submitted as a combined permit |
application with the operator's application to drill on a form |
as the Department shall prescribe. The combined application |
must include the information required in this Section. If the |
operator elects to submit a combined permit application, |
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information required by this Section that is duplicative of |
information required for an application to drill is only |
required to be provided once as part of the combined |
application. The submission of a combined permit application |
under this subsection shall not be interpreted to relieve the |
applicant or the Department from complying with the |
requirements of this Act or the Illinois Oil and Gas Act.
|
(i) Upon receipt of a permit application, the Department |
shall have no more than 60 calendar days from the date it |
receives the permit application to approve, with any conditions |
the Department may find necessary, or reject the application |
for the high volume horizontal hydraulic fracturing permit. The |
applicant may waive, in writing, the 60-day deadline upon its |
own initiative or in response to a request by the Department.
|
(j) If at any time during the review period the Department |
determines that the permit application is not complete under |
this Act, does not meet the requirements of this Section, or |
requires additional information, the Department shall notify |
the applicant in writing of the application's deficiencies and |
allow the applicant to correct the deficiencies and provide the |
Department any information requested to complete the |
application. If the applicant fails to provide adequate |
supplemental information within the review period, the |
Department may reject the application.
|
(Source: P.A. 98-22, eff. 6-17-13; 98-756, eff. 7-16-14.)
|
|
(225 ILCS 732/1-65)
|
Sec. 1-65. Hydraulic fracturing permit; bonds. |
(a) An applicant for a high volume horizontal hydraulic |
fracturing permit under this Act shall provide a bond, executed |
by a surety authorized to transact business in this State. The |
bond shall be in the amount of $50,000 per permit or a blanket |
bond of $500,000 for all permits. If the applicant is required |
to submit a bond to the Department under the Illinois Oil and |
Gas Act, the applicant's submission of a bond under this |
Section shall satisfy the bonding requirements provided for in |
the Illinois Oil and Gas Act. In lieu of a bond, the applicant |
may provide other collateral securities such as cash, |
certificates of deposit, or irrevocable letters of credit under |
the terms and conditions as the Department may provide by rule.
|
(b) The bond or other collateral securities shall remain in |
force until the well is plugged and abandoned. Upon abandoning |
a well to the satisfaction of the Department and in accordance |
with the Illinois Oil and Gas Act, the bond or other collateral |
securities shall be promptly released by the Department. Upon |
the release by the Department of the bond or other collateral |
securities, any cash or collateral securities deposited shall |
be returned by the Department to the applicant who deposited |
it.
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(c) If, after notice and hearing, the Department determines |
that any of the requirements of this Act or rules adopted under |
this Act or the orders of the Department have not been complied |
|
with within the time limit set by any notice of violation |
issued under this Act, the permittee's bond or other collateral |
securities shall be forfeited. Forfeiture under this |
subsection shall not limit any duty of the permittee to |
mitigate or remediate harms or foreclose enforcement by the |
Department or the Agency. In no way will payment under this |
bond exceed the aggregate penalty as specified.
|
(d) When any bond or other collateral security is forfeited |
under the provisions of this Act or rules adopted under this |
Act, the Department shall collect the forfeiture without delay. |
The surety shall have 30 days to submit payment for the bond |
after receipt of notice by the permittee of the forfeiture.
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(e) All forfeitures shall be deposited in the Oil and Gas |
Resource Management Mines and Minerals Regulatory Fund to be |
used, as necessary, to mitigate or remediate violations of this |
Act or rules adopted under this Act.
|
(Source: P.A. 98-22, eff. 6-17-13.)
|
(225 ILCS 732/1-135)
|
Sec. 1-135. The Oil and Gas Resource Management Mines and |
Minerals Regulatory Fund. The Oil and Gas Resource Management |
Mines and Minerals Regulatory Fund is created as a special fund |
in the State treasury. All moneys required by this Act to be |
deposited into the Fund shall be used by the Department to |
administer and enforce this Act and otherwise support the |
operations and programs of the Office of Oil and Gas Resource |