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| 1 | | practice
of coal mining in the State of Illinois.
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| 2 | | (c) Notwithstanding any provision of this Act or any other |
| 3 | | law to the contrary, the Department of Natural Resources may |
| 4 | | have within it an Office of Oil and Gas Resource Management, |
| 5 | | which may be responsible for the functions previously vested in |
| 6 | | the Department of Mines and Minerals relating to oil and gas |
| 7 | | resources, such other related functions and responsibilities |
| 8 | | as may be provided by law, and other functions and |
| 9 | | responsibilities at the discretion of the Department of Natural |
| 10 | | Resources. |
| 11 | | (Source: P.A. 89-50, eff. 7-1-95; 89-445, eff. 2-7-96.)
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| 12 | | Section 10. The State Finance Act is amended by changing |
| 13 | | Section 5.832 as follows:
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| 14 | | (30 ILCS 105/5.832) |
| 15 | | Sec. 5.832. The Oil and Gas Resource Management Mines and |
| 16 | | Minerals Regulatory Fund. |
| 17 | | (Source: P.A. 98-22, eff. 6-17-13; 98-756, eff. 7-16-14.)
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| 18 | | Section 15. The Hydraulic Fracturing Regulatory Act is |
| 19 | | amended by changing Sections 1-35, 1-65 and 1-135 as follows:
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| 20 | | (225 ILCS 732/1-35)
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| 21 | | Sec. 1-35. High volume horizontal hydraulic fracturing |
| 22 | | permit application. |
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| 1 | | (a) Every applicant for a permit under this Act shall first |
| 2 | | register with the Department at least 30 days before applying |
| 3 | | for a permit. The Department shall make available a |
| 4 | | registration form within 90 days after the effective date of |
| 5 | | this Act. The registration form shall require the following |
| 6 | | information:
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| 7 | | (1) the name and address of the registrant and any |
| 8 | | parent, subsidiary, or affiliate thereof;
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| 9 | | (2) disclosure of all findings of a serious violation |
| 10 | | or an equivalent violation under federal or state laws or |
| 11 | | regulations in the development or operation of an oil or |
| 12 | | gas exploration or production site via hydraulic |
| 13 | | fracturing by the applicant or any parent, subsidiary, or |
| 14 | | affiliate thereof within the previous 5 years; and
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| 15 | | (3) proof of insurance to cover injuries, damages, or |
| 16 | | loss related to pollution or diminution in the amount of at |
| 17 | | least $5,000,000, from an insurance carrier authorized, |
| 18 | | licensed, or permitted to do this insurance business in |
| 19 | | this State that holds at least an A- rating by A.M. Best & |
| 20 | | Co. or any comparable rating service.
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| 21 | | A registrant must notify the Department of any change in |
| 22 | | the information identified in paragraphs (1), (2), or (3) of |
| 23 | | this subsection (a) at least annually or upon request of the |
| 24 | | Department.
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| 25 | | (b) Every applicant for a permit under this Act must submit |
| 26 | | the following information to the Department on an application |
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| 1 | | form provided by the Department:
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| 2 | | (1) the name and address of the applicant and any |
| 3 | | parent, subsidiary, or affiliate thereof;
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| 4 | | (2) the proposed well name and address and legal |
| 5 | | description of the well site and its unit area;
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| 6 | | (3) a statement whether the proposed location of the |
| 7 | | well site is in compliance with the requirements of Section |
| 8 | | 1-25 of this Act and a plat, which shows the proposed |
| 9 | | surface location of the well site, providing the distance |
| 10 | | in feet, from the surface location of the well site to the |
| 11 | | features described in subsection (a) of Section 1-25 of |
| 12 | | this Act;
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| 13 | | (4) a detailed description of the proposed well to be |
| 14 | | used for the high volume horizontal hydraulic fracturing |
| 15 | | operations including, but not limited to, the following |
| 16 | | information:
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| 17 | | (A) the approximate total depth to which the well |
| 18 | | is to be drilled or deepened;
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| 19 | | (B) the proposed angle and direction of the well;
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| 20 | | (C) the actual depth or the approximate depth at |
| 21 | | which the well to be drilled deviates from vertical;
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| 22 | | (D) the angle and direction of any nonvertical |
| 23 | | portion of the wellbore until the well reaches its |
| 24 | | total target depth or its actual final depth; and
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| 25 | | (E) the estimated length and direction of the |
| 26 | | proposed horizontal lateral or wellbore;
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| 1 | | (5) the estimated depth and elevation, according to the |
| 2 | | most recent publication of the Illinois State Geological |
| 3 | | Survey of Groundwater for the location of the well, of the |
| 4 | | lowest potential fresh water along the entire length of the |
| 5 | | proposed wellbore;
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| 6 | | (6) a detailed description of the proposed high volume |
| 7 | | horizontal hydraulic fracturing operations, including, but |
| 8 | | not limited to, the following:
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| 9 | | (A) the formation affected by the high volume |
| 10 | | horizontal hydraulic fracturing operations, including, |
| 11 | | but not limited to, geologic name and geologic |
| 12 | | description of the formation that will be stimulated by |
| 13 | | the operation;
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| 14 | | (B) the anticipated surface treating pressure |
| 15 | | range;
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| 16 | | (C) the maximum anticipated injection treating |
| 17 | | pressure;
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| 18 | | (D) the estimated or calculated fracture pressure |
| 19 | | of the producing and confining zones; and
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| 20 | | (E) the planned depth of all proposed perforations |
| 21 | | or depth to the top of the open hole section;
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| 22 | | (7) a plat showing all known previous wellbores within |
| 23 | | 750 feet of any part of the horizontal wellbore that |
| 24 | | penetrated within 400 vertical feet of the formation that |
| 25 | | will be stimulated as part of the high volume horizontal |
| 26 | | hydraulic fracturing operations;
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| 1 | | (8) unless the applicant documents why the information |
| 2 | | is not available at the time the application is submitted, |
| 3 | | a chemical disclosure report identifying each chemical and |
| 4 | | proppant anticipated to be used in hydraulic fracturing |
| 5 | | fluid for each stage of the hydraulic fracturing operations |
| 6 | | including the following:
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| 7 | | (A) the total volume of water anticipated to be |
| 8 | | used in the hydraulic fracturing treatment of the well |
| 9 | | or the type and total volume of the base fluid |
| 10 | | anticipated to be used in the hydraulic fracturing |
| 11 | | treatment, if something other than water;
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| 12 | | (B) each hydraulic fracturing additive anticipated |
| 13 | | to be used in the hydraulic fracturing fluid, including |
| 14 | | the trade name, vendor, a brief descriptor of the |
| 15 | | intended use or function of each hydraulic fracturing |
| 16 | | additive, and the Material Safety Data Sheet (MSDS), if |
| 17 | | applicable;
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| 18 | | (C) each chemical anticipated to be intentionally |
| 19 | | added to the base fluid, including for each chemical, |
| 20 | | the Chemical Abstracts Service number, if applicable; |
| 21 | | and
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| 22 | | (D) the anticipated concentration in the base |
| 23 | | fluid, in percent by mass, of each chemical to be |
| 24 | | intentionally added to the base fluid;
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| 25 | | (9) a certification of compliance with the Water Use |
| 26 | | Act of 1983 and applicable regional water supply plans;
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| 1 | | (10) a fresh water withdrawal and management plan that |
| 2 | | shall include the following information:
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| 3 | | (A) the source of the water, such as surface or |
| 4 | | groundwater, anticipated to be used for water |
| 5 | | withdrawals, and the anticipated withdrawal location;
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| 6 | | (B) the anticipated volume and rate of each water |
| 7 | | withdrawal from each withdrawal location; |
| 8 | | (C) the anticipated months when water withdrawals |
| 9 | | shall be made from each withdrawal location;
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| 10 | | (D) the methods to be used to minimize water |
| 11 | | withdrawals as much as feasible; and
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| 12 | | (E) the methods to be used for surface water |
| 13 | | withdrawals to minimize adverse impact to aquatic |
| 14 | | life. |
| 15 | | Where a surface water source is wholly contained within |
| 16 | | a single property, and the owner of the property expressly |
| 17 | | agrees in writing to its use for water withdrawals, the |
| 18 | | applicant is not required to include this surface water |
| 19 | | source in the fresh water withdrawal and management plan;
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| 20 | | (11) a plan for the handling, storage, transportation, |
| 21 | | and disposal or reuse of hydraulic fracturing fluids and |
| 22 | | hydraulic fracturing flowback. The plan shall identify the |
| 23 | | specific Class II injection well or wells that will be used |
| 24 | | to dispose of the hydraulic fracturing flowback. The plan |
| 25 | | shall describe the capacity of the tanks to be used for the |
| 26 | | capture and storage of flowback and of the lined reserve |
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| 1 | | pit to be used, if necessary, to temporarily store any |
| 2 | | flowback in excess of the capacity of the tanks. |
| 3 | | Identification of the Class II injection well or wells |
| 4 | | shall be by name, identification number, and specific |
| 5 | | location and shall include the date of the most recent |
| 6 | | mechanical integrity test for each Class II injection well;
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| 7 | | (12) a well site safety plan to address proper safety |
| 8 | | measures to be employed during high volume horizontal |
| 9 | | hydraulic fracturing operations for the protection of |
| 10 | | persons on the site as well as the general public. Within |
| 11 | | 15 calendar days after submitting the permit application to |
| 12 | | the Department, the applicant must provide a copy of the |
| 13 | | plan to the county or counties in which hydraulic |
| 14 | | fracturing operations will occur. Within 5 calendar days of |
| 15 | | its receipt, the Department shall provide a copy of the |
| 16 | | well site safety plan to the Office of the State Fire |
| 17 | | Marshal;
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| 18 | | (13) a containment plan describing the containment |
| 19 | | practices and equipment to be used and the area of the well |
| 20 | | site where containment systems will be employed, and within |
| 21 | | 5 calendar days of its receipt, the Department shall |
| 22 | | provide a copy of the containment plan to the Office of the |
| 23 | | State Fire Marshal;
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| 24 | | (14) a casing and cementing plan that describes the |
| 25 | | casing and cementing practices to be employed, including |
| 26 | | the size of each string of pipe, the starting point, and |
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| 1 | | depth to which each string is to be set and the extent to |
| 2 | | which each string is to be cemented;
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| 3 | | (15) a traffic management plan that identifies the |
| 4 | | anticipated roads, streets, and highways that will be used |
| 5 | | for access to and egress from the well site. The traffic |
| 6 | | management plan will include a point of contact to discuss |
| 7 | | issues related to traffic management. Within 15 calendar |
| 8 | | days after submitting the permit application to the |
| 9 | | Department, the applicant must provide a copy of the |
| 10 | | traffic management plan to the county or counties in which |
| 11 | | the well site is located, and within 5 calendar days of its |
| 12 | | receipt, the Department shall provide a copy of the traffic |
| 13 | | management plan to the Office of the State Fire Marshal;
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| 14 | | (16) the names and addresses of all owners of any real |
| 15 | | property within 1,500 feet of the proposed well site, as |
| 16 | | disclosed by the records in the office of the recorder of |
| 17 | | the county or counties;
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| 18 | | (17) drafts of the specific public notice and general |
| 19 | | public notice as required by Section 1-40 of this Act;
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| 20 | | (18) a statement that the well site at which the high |
| 21 | | volume horizontal hydraulic fracturing operation will be |
| 22 | | conducted will be restored in compliance with Section |
| 23 | | 240.1181 of Title 62 of the Illinois Administrative Code |
| 24 | | and Section 1-95 of this Act;
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| 25 | | (19) proof of insurance to cover injuries, damages, or |
| 26 | | loss related to pollution in the amount of at least |
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| 1 | | $5,000,000; and
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| 2 | | (20) any other relevant information which the |
| 3 | | Department may, by rule, require.
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| 4 | | (c) Where an application is made to conduct high volume |
| 5 | | horizontal fracturing operations at a well site located within |
| 6 | | the limits of any city, village, or incorporated town, the |
| 7 | | application shall state the name of the city, village, or |
| 8 | | incorporated town and be accompanied with a certified copy of |
| 9 | | the official consent for the hydraulic fracturing operations to |
| 10 | | occur from the municipal authorities where the well site is |
| 11 | | proposed to be located. No permit shall be issued unless |
| 12 | | consent is secured and filed with the permit application. In |
| 13 | | the event that an amended location is selected, the original |
| 14 | | permit shall not be valid unless a new certified consent is |
| 15 | | filed for the amended location.
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| 16 | | (d) The hydraulic fracturing permit application shall be |
| 17 | | accompanied by a bond as required by subsection (a) of Section |
| 18 | | 1-65 of this Act.
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| 19 | | (e) Each application for a permit under this Act shall |
| 20 | | include payment of a non-refundable fee of $13,500. Of this |
| 21 | | fee, $11,000 shall be deposited into the Oil and Gas Resource |
| 22 | | Management Mines and Minerals Regulatory Fund for the |
| 23 | | Department to use to administer and enforce this Act and |
| 24 | | otherwise support the operations and programs of the Office of |
| 25 | | Oil and Gas Resource Management Office of Mines and Minerals. |
| 26 | | The remaining $2,500 shall be deposited into the Illinois Clean |
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| 1 | | Water Fund for the Agency to use to carry out its functions |
| 2 | | under this Act. The Department shall not initiate its review of |
| 3 | | the permit application until the applicable fee under this |
| 4 | | subsection (e) has been submitted to and received by the |
| 5 | | Department.
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| 6 | | (f) Each application submitted under this Act shall be |
| 7 | | signed, under the penalty of perjury, by the applicant or the |
| 8 | | applicant's designee who has been vested with the authority to |
| 9 | | act on behalf of the applicant and has direct knowledge of the |
| 10 | | information contained in the application and its attachments. |
| 11 | | Any person signing an application shall also sign an affidavit |
| 12 | | with the following certification:
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| 13 | | "I certify, under penalty of perjury as provided by law |
| 14 | | and under penalty of refusal, suspension, or revocation of |
| 15 | | a high volume horizontal hydraulic fracturing permit, that |
| 16 | | this application and all attachments are true, accurate, |
| 17 | | and complete to the best of my knowledge.".
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| 18 | | (g) The permit application shall be submitted to the |
| 19 | | Department in both electronic and hard copy format. The |
| 20 | | electronic format shall be searchable.
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| 21 | | (h) The application for a high volume horizontal hydraulic |
| 22 | | fracturing permit may be submitted as a combined permit |
| 23 | | application with the operator's application to drill on a form |
| 24 | | as the Department shall prescribe. The combined application |
| 25 | | must include the information required in this Section. If the |
| 26 | | operator elects to submit a combined permit application, |
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| 1 | | information required by this Section that is duplicative of |
| 2 | | information required for an application to drill is only |
| 3 | | required to be provided once as part of the combined |
| 4 | | application. The submission of a combined permit application |
| 5 | | under this subsection shall not be interpreted to relieve the |
| 6 | | applicant or the Department from complying with the |
| 7 | | requirements of this Act or the Illinois Oil and Gas Act.
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| 8 | | (i) Upon receipt of a permit application, the Department |
| 9 | | shall have no more than 60 calendar days from the date it |
| 10 | | receives the permit application to approve, with any conditions |
| 11 | | the Department may find necessary, or reject the application |
| 12 | | for the high volume horizontal hydraulic fracturing permit. The |
| 13 | | applicant may waive, in writing, the 60-day deadline upon its |
| 14 | | own initiative or in response to a request by the Department.
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| 15 | | (j) If at any time during the review period the Department |
| 16 | | determines that the permit application is not complete under |
| 17 | | this Act, does not meet the requirements of this Section, or |
| 18 | | requires additional information, the Department shall notify |
| 19 | | the applicant in writing of the application's deficiencies and |
| 20 | | allow the applicant to correct the deficiencies and provide the |
| 21 | | Department any information requested to complete the |
| 22 | | application. If the applicant fails to provide adequate |
| 23 | | supplemental information within the review period, the |
| 24 | | Department may reject the application.
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| 25 | | (Source: P.A. 98-22, eff. 6-17-13; 98-756, eff. 7-16-14.)
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| 1 | | (225 ILCS 732/1-65)
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| 2 | | Sec. 1-65. Hydraulic fracturing permit; bonds. |
| 3 | | (a) An applicant for a high volume horizontal hydraulic |
| 4 | | fracturing permit under this Act shall provide a bond, executed |
| 5 | | by a surety authorized to transact business in this State. The |
| 6 | | bond shall be in the amount of $50,000 per permit or a blanket |
| 7 | | bond of $500,000 for all permits. If the applicant is required |
| 8 | | to submit a bond to the Department under the Illinois Oil and |
| 9 | | Gas Act, the applicant's submission of a bond under this |
| 10 | | Section shall satisfy the bonding requirements provided for in |
| 11 | | the Illinois Oil and Gas Act. In lieu of a bond, the applicant |
| 12 | | may provide other collateral securities such as cash, |
| 13 | | certificates of deposit, or irrevocable letters of credit under |
| 14 | | the terms and conditions as the Department may provide by rule.
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| 15 | | (b) The bond or other collateral securities shall remain in |
| 16 | | force until the well is plugged and abandoned. Upon abandoning |
| 17 | | a well to the satisfaction of the Department and in accordance |
| 18 | | with the Illinois Oil and Gas Act, the bond or other collateral |
| 19 | | securities shall be promptly released by the Department. Upon |
| 20 | | the release by the Department of the bond or other collateral |
| 21 | | securities, any cash or collateral securities deposited shall |
| 22 | | be returned by the Department to the applicant who deposited |
| 23 | | it.
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| 24 | | (c) If, after notice and hearing, the Department determines |
| 25 | | that any of the requirements of this Act or rules adopted under |
| 26 | | this Act or the orders of the Department have not been complied |
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| 1 | | with within the time limit set by any notice of violation |
| 2 | | issued under this Act, the permittee's bond or other collateral |
| 3 | | securities shall be forfeited. Forfeiture under this |
| 4 | | subsection shall not limit any duty of the permittee to |
| 5 | | mitigate or remediate harms or foreclose enforcement by the |
| 6 | | Department or the Agency. In no way will payment under this |
| 7 | | bond exceed the aggregate penalty as specified.
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| 8 | | (d) When any bond or other collateral security is forfeited |
| 9 | | under the provisions of this Act or rules adopted under this |
| 10 | | Act, the Department shall collect the forfeiture without delay. |
| 11 | | The surety shall have 30 days to submit payment for the bond |
| 12 | | after receipt of notice by the permittee of the forfeiture.
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| 13 | | (e) All forfeitures shall be deposited in the Oil and Gas |
| 14 | | Resource Management Mines and Minerals Regulatory Fund to be |
| 15 | | used, as necessary, to mitigate or remediate violations of this |
| 16 | | Act or rules adopted under this Act.
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| 17 | | (Source: P.A. 98-22, eff. 6-17-13.)
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| 18 | | (225 ILCS 732/1-135)
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| 19 | | Sec. 1-135. The Oil and Gas Resource Management Mines and |
| 20 | | Minerals Regulatory Fund. The Oil and Gas Resource Management |
| 21 | | Mines and Minerals Regulatory Fund is created as a special fund |
| 22 | | in the State treasury. All moneys required by this Act to be |
| 23 | | deposited into the Fund shall be used by the Department to |
| 24 | | administer and enforce this Act and otherwise support the |
| 25 | | operations and programs of the Office of Oil and Gas Resource |