Section 240.250  Issuance of Permit to Drill or Operate

a)         If the applicant satisfies requirements of the Act and Rules the Department shall issue a permit.

b)         A permit shall not be issued to an applicant where:

1)         the applicant has falsified or otherwise misstated any information on or relative to the permit application;

2)         the applicant has failed to abate a violation of the Act specified in a final administrative decision of the Department;

3)         an officer, director, or partner in the applicant, or person with an interest in the applicant exceeding 5%, was an officer, director, partner, or person with an interest exceeding 5%, in another entity that failed to abate a violation of the Act specified in a final administrative decision of the Department;

4)         the applicant is an officer, director, partner, or person with an interest exceeding 5%, in another entity that has failed to abate a violation of the Act specified in a final administrative decision of the Department (Section 8a of the Act);

5)         funds have been obligated and remain outstanding from the Plugging and Restoration Fund to plug wells, under Subpart P, for which the applicant was a previous permittee; or the applicant was an officer, director, partner, or person with an interest exceeding 5%, in a permittee for which funds were obligated; or an officer, director, or partner in the applicant, or person with an interest in the applicant exceeding 5%, was an officer, director, partner or person with an interest exceeding 5% in a permittee for which funds were obligated; or

6)         the applicant is delinquent in the payment of Annual Well Fees; or the applicant is an officer, director, partner, or person with an interest exceeding 5%, in another permittee who is delinquent in payment of Annual Well Fees; or an officer, director, or partner in the applicant, or person with an interest in the applicant exceeding 5%, was an officer, director, partner or person with an interest exceeding 5% in a permittee who is delinquent in payment of Annual Well Fees.

c)         Permits shall expire one year from the date of issuance unless acted upon by commencement of drilling, deepening or converting operations authorized by the permit, which are to be continued with due diligence, but not to exceed 2 years from date of commencement of drilling or conversion operations, at which time the well shall be plugged, production casing set, conversion operations completed or well repermitted.  If the drilling rig is removed prior to the expiration of the permit, any further drilling or deepening shall require repermitting.

d)         Permits are not transferable prior to the drilling of the well.

(Source:  Amended at 22 Ill. Reg. 22314, effective December 14, 1998)