98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
HB2615

 

Introduced 2/21/2013, by Rep. John E. Bradley - David Reis - Naomi D. Jakobsson - Mike Bost - Ann Williams, et al.

 

SYNOPSIS AS INTRODUCED:
 
New Act
30 ILCS 105/5.826 new

    Creates the Illinois Hydraulic Fracturing Regulatory Act. Prohibits high volume horizontal hydraulic fracturing operations performed without a permit. Regulates where high volume horizontal hydraulic fracturing operations are proposed, planned, or occurring may be located. Provides requirements for permit applications, modification, suspension, and revocation of permits, insurance, well construction and drilling, disclosures, water quality monitoring, investigation and enforcement, violations and penalties, and administrative review. Authorizes the Department of Natural Resources to adopt rules as may be necessary to accomplish the purposes of this Act. Amends the State Finance Act. Creates the Mines and Minerals Regulatory Fund. Effective immediately.


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CORRECTIONAL BUDGET AND IMPACT NOTE ACT MAY APPLY
FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

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1    AN ACT concerning regulation.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 1. Short title. This Act may be cited as the
5Hydraulic Fracturing Regulatory Act.
 
6    Section 5. Definitions. For the purposes of this Act,
7unless the context otherwise requires:
8    "Agency" means the Illinois Environmental Protection
9Agency.
10    "Aquatic life" means all fish, reptiles, amphibians,
11crayfish, and mussels.
12    "Aquifer" means saturated (with groundwater) soils and
13geologic materials that are sufficiently permeable to readily
14yield economically useful quantities (at least 70 gallons per
15minute) of fresh water to wells, springs, or streams under
16ordinary hydraulic gradients.
17    "Base fluid" means the continuous phase fluid type,
18including, but not limited to, water used in a high volume
19horizontal hydraulic fracturing operation.
20    "BTEX" means benzene, toluene, ethylbenzene, and xylene.
21    "Chemical" means any element, chemical compound, or
22mixture of elements or compounds that has its own specific name
23or identity, such as a Chemical Abstracts Service number,

 

 

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1regardless of whether the chemical is subject to the
2requirements of paragraph (2) of subsection (g) of 29 Code of
3Federal Regulations 1910.1200.
4    "Chemical Abstracts Service" means the division of the
5American Chemical Society that is the globally recognized
6authority for information on chemical substances.
7    "Chemical Abstracts Service number" or "CAS number" means
8the unique identification number assigned to a chemical by the
9Chemical Abstracts Service.
10    "Completion combustion device" means any ignition device,
11installed horizontally or vertically, used in exploration and
12production operations to combust otherwise vented emissions.
13    "Delineation well" means a well drilled in order to
14determine the boundary of a field or producing reservoir.
15    "Department" means the Illinois Department of Natural
16Resources.
17    "Director" means the Director of Natural Resources.
18    "Flare" means a thermal oxidation system using an open,
19enclosed, or semi-enclosed flame. "Flare" does not include
20completion combustion devices as defined in this Section.
21    "Flowback period" means the process of allowing fluids to
22flow from a well following a treatment, either in preparation
23for a subsequent phase of treatment or in preparation for
24cleanup and returning the well to production. "Flowback period"
25begins when the material the hydraulic fracturing fluid returns
26to the surface following hydraulic fracturing or

 

 

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1re-fracturing. "Flowback period" ends with either well shut in
2or when the well is producing continuously to the flow line or
3to a storage vessel for collection, whichever occurs first.
4    "Fresh water" means surface and subsurface water in its
5natural state that is suitable for drinking water for human
6consumption, domestic livestock, irrigation, industrial,
7municipal and recreational purposes, that is capable of
8supporting aquatic life, and contains less than 10,000 ppm
9total dissolved solids.
10    "Gas" means all natural gas, including casinghead gas, and
11all other natural hydrocarbons not defined as oil.
12    "Groundwater" means any water below the land surface that
13is within the saturated zone or geologic materials where the
14fluid pressure in the pore space is equal to or greater than
15atmospheric pressure.
16    "Health professional" means a physician, physician
17assistant, nurse practitioner, a registered professional
18nurse, emergency medical technician, or other individual
19appropriately licensed or registered to provide health care
20services.
21    "High volume horizontal hydraulic fracturing operations"
22means all stages of a stimulation treatment of a horizontal
23well as defined by this Act by the pressurized application of
24more than 80,000 gallons per stage of hydraulic fracturing
25fluid and proppant to initiate or propagate fractures in a
26geologic formation to enhance extraction or production of oil

 

 

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1or gas.
2    "High volume horizontal hydraulic fracturing permit" means
3the permit issued by the Department under this Act allowing
4high volume horizontal hydraulic fracturing operations to
5occur at a well site.
6    "High volume horizontal hydraulic fracturing treatment"
7shall have the same definition as "High volume horizontal
8hydraulic fracturing operations".
9    "Horizontal well" means a well with a wellbore drilled
10laterally at an angle of at least 80 degrees to the vertical
11and with a horizontal projection exceeding 100 feet measured
12from the initial point of penetration into the productive
13formation through the terminus of the lateral in the same
14common source of hydrocarbon supply.
15    "Hydraulic fracturing additive" means any chemical
16substance or combination of substances, including, but not
17limited to, any chemical and proppant that is added to a base
18fluid for the purposes of preparing a hydraulic fracturing
19fluid for a high volume horizontal hydraulic fracturing
20operation.
21    "Hydraulic fracturing flowback" means all hydraulic
22fracturing fluid and other fluids that return to the surface
23after a stage of high volume horizontal hydraulic fracturing
24operations has been completed and prior to the well being
25placed in production.
26    "Hydraulic fracturing fluid" means the mixture of the base

 

 

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1fluid and all the hydraulic fracturing additives, used to
2perform high volume horizontal hydraulic fracturing.
3    "Hydraulic fracturing string" means any pipe or casing
4string used for the transport of hydraulic fracturing fluids
5during the conduct of the high volume horizontal hydraulic
6fracturing operations.
7    "Intake" means a pipe or other means to withdraw raw water
8from a water source.
9    "Landowner" means the legal title holder or owner of real
10property and includes an owner of an undivided interest, a life
11tenant, a remainderman, a public or private corporation, a
12trustee under an active trust, and the holder of the beneficial
13interest under a land trust. "Landowner" does not include a
14mortgagee, a trustee under a trust deed in the nature of a
15mortgage, a lien holder, or a lessee.
16    "Low pressure well" means a well with reservoir pressure
17and vertical well depth such that 0.445 times the reservoir
18pressure (in psia) minus 0.038 times the vertical well depth
19(in feet) minus 67.578 psia is less than the flow line pressure
20at the sales meter.
21    "Nature preserve" shall have the same meaning as provided
22in Section 3.11 of the Illinois Natural Areas Preservation Act.
23    "Oil" means natural crude oil or petroleum and other
24hydrocarbons, regardless of gravity, which are produced at the
25well in liquid form by ordinary production methods or by the
26use of an oil and gas separator and which are not the result of

 

 

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1condensation of gas after it leaves the underground reservoir.
2    "Operator" means the individual or entity controlling the
3right to drill or produce a horizontal well in accordance with
4the requirements of the Illinois Oil and Gas Act.
5    "Owner" shall have the same meaning as provided in Section
61 of the Illinois Oil and Gas Act.
7    "Perennial stream" means a stream that has continuous flow
8in its stream bed during all of the calendar year.
9    "Permit" means a high volume horizontal hydraulic
10fracturing permit.
11    "Permittee" means a person holding a high volume horizontal
12hydraulic fracturing permit under this Act.
13    "Person" means any individual, partnership,
14co-partnership, firm, company, limited liability company,
15corporation, association, joint stock company, trust, estate,
16political subdivision, state agency, or any other legal entity
17or their legal representative, agent, or assigns.
18    "Pollution or diminution" means:
19        (1) in groundwater, any of the following:
20            (A) detection of benzene or any other carcinogen in
21        any Class I, Class II, or Class III groundwater;
22            (B) detection of any constituent in item (i) of
23        subparagraph (A) of paragraph (3) of subsection (a) of
24        35 Ill. Adm. Code 620.310 equal to or above the listed
25        preventive response criteria in any Class I, Class II,
26        or Class III groundwater;

 

 

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1            (C) detection of any constituent in 35 Ill. Adm.
2        Code 620.410 (a), (b), (c), (d) or (e) equal to or
3        above the listed standard in any Class I, Class II, or
4        Class III groundwater;
5            (D) detection of any constituent in Class III
6        groundwater equal to or above a standard established
7        under 35 Ill. Adm. Code 620.260; or
8            (E) detection of any constituent in Class I, Class
9        II, or Class III groundwater equal to or above a
10        cleanup objective listed in 35 Ill. Adm. Code 742.
11        (2) in surface water, exceeding any applicable numeric
12    or narrative standard in 35 Ill. Adm. Code Part 302 or Part
13    304.
14    "Produced water" means water, regardless of chloride and
15total dissolved solids content, that is produced in conjunction
16with oil or natural gas production or natural gas storage
17operations, but does not include hydraulic fracturing
18flowback.
19    "Proppant" means sand or any natural or man-made material
20that is used during high volume horizontal hydraulic fracturing
21operations to prop open the artificially created or enhanced
22fractures.
23    "Public water supply" means all mains, pipes, and
24structures through which water is obtained and distributed to
25the public, including wells and well structures, intakes and
26cribs, pumping stations, treatment plants, reservoirs, and

 

 

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1storage tanks and appurtenances, collectively or severally,
2actually used or intended for use for the purpose of furnishing
3water for drinking or general domestic use, and which serves at
4least 15 service connections or which regularly serves at least
525 persons at least 60 days per year.
6    "Register of Land and Water Reserves" means the list of
7areas registered in accordance with Section 16 of the Illinois
8Natural Areas Preservation Act and Part 4010 of Title 17 of the
9Illinois Administrative Code.
10    "Release" means any spilling, leaking, pumping, pouring,
11emitting, emptying, discharging, injecting, escaping,
12leaching, dumping, or disposing into the environment.
13    "Serious violation" means any violation set forth in 62
14Ill. Adm. Code 240.140(c).
15    "Service connection" means the opening, including all
16fittings and appurtenances, at the water main through which
17water is supplied to the user.
18    "Surface water" means all water that is open to the
19atmosphere and subject to surface runoff.
20    "Total water volume" means the total quantity of water from
21all sources used in the high volume horizontal hydraulic
22fracturing operations, including surface water, groundwater,
23produced water, or recycled water.
24    "True vertical depth" or "TVD" means the vertical distance
25from a depth in a planned or existing wellbore or well to a
26point at the surface.

 

 

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1    "Water pollution" means any alteration of the physical,
2thermal, chemical, biological, or radioactive properties of
3any waters of the State, or the discharge of any contaminant
4into any water of the State, as will or is likely to create a
5nuisance or render the waters harmful, detrimental, or
6injurious to public health, safety, or welfare, or to domestic,
7commercial, industrial, agricultural, recreational, or other
8legitimate uses, or to livestock, wild animals, birds, or fish
9or other aquatic life.
10    "Water source" means (1) any existing water well or
11developed spring used for human or domestic animal consumption,
12or (2) any river, perennial stream, aquifer, natural or
13artificial lake, pond, wetland listed on the Register of Land
14and Water Reserves, or reservoir.
15    "Well" means any drill hole required to be permitted under
16the Illinois Oil and Gas Act.
17    "Well site" means surface areas, including the well,
18occupied by all equipment or facilities necessary for or
19incidental to high volume horizontal hydraulic fracturing
20operations, drilling, production, or plugging a well.
21    "Wildcat well" means a well outside known fields or the
22first well drilled in an oil or gas field where no other oil
23and gas production exists.
24    "Wildlife" means any bird or mammal that are by nature wild
25by way of distinction from those that are naturally tame and
26are ordinarily living unconfined in a state of nature without

 

 

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1the care of man.
 
2    Section 10. Intergovernmental cooperation. The Department
3shall have the primary authority to administer the provisions
4of this Act. The Illinois State Geological Survey, the Illinois
5State Water Survey, and the Agency shall be advised of high
6volume horizontal hydraulic fracturing permit applications
7received by the Department and lend assistance as required by
8the provisions of this Act.
 
9    Section 15. Powers and duties.
10    (a) Except as otherwise provided, the Department shall
11enforce this Act and all rules and orders adopted in accordance
12with this Act.
13    (b) Except as otherwise provided, the Department shall have
14jurisdiction and authority over all persons and property
15necessary to enforce the provisions of this Act effectively. In
16aid of this jurisdiction, the Director, or anyone designated in
17writing by the Director, shall have the authority to administer
18oaths and to issue subpoenas for the production of records or
19other documents and for the attendance of witnesses at any
20proceedings of the Department.
21    (c) The Department may authorize any employee of the
22Department, qualified by training and experience, to perform
23the powers and duties set forth in this Act.
24    (d) For the purpose of determining compliance with the

 

 

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1provisions of this Act and any orders or rules entered or
2adopted under this Act, the Department shall have the right at
3all times to go upon and inspect properties where high volume
4horizontal hydraulic fracturing operations are being or have
5been conducted.
6    (e) The Department shall make any inquiries as it may deem
7proper to determine whether a violation of this Act or any
8orders or rules entered or adopted under this Act exists or is
9imminent. In the exercise of these powers, the Department shall
10have the authority to collect data; require testing and
11sampling; to make investigation and inspections; to examine
12properties, including records and logs; to examine, check, and
13test hydrocarbon wells; to hold hearings; to adopt
14administrative rules; and to take any action as may be
15reasonably necessary to enforce this Act.
16    (f) The Department may specify the manner in which all
17information required to be submitted under this Act is
18submitted.
 
19    Section 20. Applicability. This Act applies to all wells
20where high volume horizontal hydraulic fracturing operations
21are planned, have occurred, or are occurring in this State. The
22provisions of this Act shall be in addition to the provisions
23of the Illinois Oil and Gas Act. However, if there is a
24conflict, the provisions of the Illinois Oil and Gas Act are
25superseded by this Act.
 

 

 

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1    Section 25. Setbacks and prohibitions.
2    (a) Except as otherwise provided in this Section, no well
3site where high volume horizontal hydraulic fracturing
4operations are proposed, planned, or occurring may be located
5as follows. Unless specified otherwise, all distances shall be
6measured from the closest edge of the well site:
7        (1) within 500 feet measured horizontally from any
8    residence or place of worship unless the owner of the
9    residence or the governing body of the place of worship
10    otherwise expressly agrees in writing to a closer well
11    location;
12        (2) within 500 feet measured horizontally from the edge
13    of the property line from any school, hospital, or licensed
14    nursing home facility;
15        (3) within 500 feet measured horizontally from the
16    surface location of any existing water well or developed
17    spring used for human or domestic animal consumption,
18    unless the owner or owners of the well or developed spring
19    otherwise expressly agrees or agree in writing to a closer
20    well location;
21        (4) within 300 feet measured horizontally from the
22    center of a perennial stream or from the ordinary high
23    water mark of any river, natural or artificial lake, pond,
24    or reservoir;
25        (5) within 750 feet of a nature preserve or a site on

 

 

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1    the Register of Land and Water Reserves;
2        (6) within 1,500 feet of a surface water or groundwater
3    intake of a public water supply; the distance from the
4    public water supply as identified by the Department shall
5    be measured as follows:
6            (A) For a surface water intake on a lake or
7        reservoir, the distance shall be measured from the
8        intake point on the lake or reservoir.
9            (B) For a surface water intake on a flowing stream,
10        the distance shall be measured from a semicircular
11        radius extending upstream of the surface water intake.
12            (C) For a groundwater source, the distance shall be
13        measured from the surface location of the wellhead or
14        the ordinary high water mark of the spring.
15    The distance restrictions under this subsection (a) shall
16be determined as conditions exist at the time of the submission
17of the permit application under this Act.
18    (b) Notwithstanding any other provision of this Section,
19the owner of a water source identified in paragraph (4) of
20subsection (a) of this Section that is wholly contained within
21the owner's property may expressly agree in writing to a closer
22well location.
23    (c) It is unlawful to inject or discharge hydraulic
24fracturing fluid, produced water, BTEX, diesel, or petroleum
25distillates into fresh water.
26    (d) It is unlawful to perform any high volume horizontal

 

 

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1hydraulic fracturing operations by knowingly or recklessly
2injecting diesel or any petroleum distillates.
 
3    Section 30. High volume horizontal hydraulic fracturing
4permit required.
5    (a) Notwithstanding any other provision of law, a person
6may not drill, deepen, or convert a horizontal well where high
7volume horizontal hydraulic fracturing operations are planned
8or occurring or convert a vertical well into a horizontal well
9where high volume horizontal hydraulic fracturing operations
10are planned in this State, unless the person has been issued a
11permit by the Department under this Act and has obtained all
12applicable authorizations required by the Illinois Oil and Gas
13Act.
14    (b) If multiple wells are to be stimulated using high
15volume horizontal hydraulic fracturing operations from a
16single well site, then a separate permit shall be obtained for
17each well at the site.
 
18    Section 35. High volume horizontal hydraulic fracturing
19permit application.
20    (a) Every applicant for a permit under this Act shall first
21register with the Department at least 30 days before applying
22for a permit. The Department shall provide a registration form
23within 90 days after the effective date of this Act. The
24registration form shall require the following information:

 

 

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1        (1) the name and address of the registrant and any
2    parent, subsidiary, or affiliate thereof;
3        (2) disclosure of all findings of a serious violation
4    or an equivalent violation under federal or state laws or
5    regulations in the development or operation of an oil or
6    gas exploration or production site via hydraulic
7    fracturing by the applicant or any parent, subsidiary, or
8    affiliate thereof within the previous 5 years; and
9        (3) proof of insurance to cover injuries, damages, or
10    loss related to pollution or diminution in the amount of at
11    least $5,000,0000, from an insurance carrier authorized,
12    licensed, or permitted to do this insurance business in
13    this State that holds at least an A- rating by A.M. Best &
14    Co. or any comparable rating service.
15    A registrant must notify the Department of any change in
16the information identified in paragraphs (1), (2), or (3) of
17this subsection (a) at least annually or upon request of the
18Department.
19    (b) Every applicant for a permit under this Act must submit
20the following information to the Department on an application
21form provided by the Department:
22        (1) the name and address of the applicant and any
23    parent, subsidiary, or affiliate thereof;
24        (2) the proposed well name and address and legal
25    description of the well site and its unit area;
26        (3) a statement whether the proposed location of the

 

 

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1    well site is in compliance with the requirements of Section
2    25 of this Act and a plat, which shows the proposed surface
3    location of the well site, providing the distance in feet,
4    from the surface location of the well site to the features
5    described in subsection (a) of Section 25 of this Act;
6        (4) a detailed description of the proposed well to be
7    used for the high volume horizontal hydraulic fracturing
8    operations including, but not limited to, the following
9    information:
10            (A) the approximate total depth to which the well
11        is to be drilled or deepened;
12            (B) the proposed angle and direction of the well;
13            (C) the actual depth or the approximate depth at
14        which the well to be drilled deviates from vertical;
15            (D) the angle and direction of any nonvertical
16        portion of the wellbore until the well reaches its
17        total target depth or its actual final depth; and
18            (E) the estimated length and direction of the
19        proposed horizontal lateral or wellbore;
20        (5) the estimated depth and elevation, according to the
21    most recent publication of the Illinois State Geological
22    Survey of Groundwater for the location of the well, of the
23    lowest potential fresh water along the entire length of the
24    proposed wellbore;
25        (6) a detailed description of the proposed high volume
26    horizontal hydraulic fracturing operations, including, but

 

 

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1    not limited to, the following:
2            (A) the formation affected by the high volume
3        horizontal hydraulic fracturing operations, including,
4        but not limited to, geologic name and geologic
5        description of the formation that will be stimulated by
6        the operation;
7            (B) the anticipated surface treating pressure
8        range;
9            (C) the maximum anticipated injection treating
10        pressure;
11            (D) the estimated or calculated fracture pressure
12        of the producing and confining zones; and
13            (E) the planned depth of all proposed perforations
14        or depth to the top of the open hole section;
15        (7) plat showing all known previous well bores within
16    750 feet of any part of the horizontal well bore that
17    penetrated within 400 vertical feet of the formation that
18    will be stimulated as part of the high volume horizontal
19    hydraulic fracturing operations;
20        (8) unless the applicant documents why the information
21    is not available at the time the application is submitted,
22    a chemical disclosure report identifying each chemical and
23    proppant anticipated to be used in hydraulic fracturing
24    fluid for each stage of the hydraulic fracturing operations
25    including the following:
26            (A) the total volume of water anticipated to be

 

 

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1        used in the hydraulic fracturing treatment of the well
2        or the type and total volume of the base fluid
3        anticipated to be used in the hydraulic fracturing
4        treatment, if something other than water;
5            (B) each hydraulic fracturing additive anticipated
6        to be used in the hydraulic fracturing fluid, including
7        the trade name, vendor, a brief descriptor of the
8        intended use or function of each hydraulic fracturing
9        additive, and the Material Safety Data Sheet (MSDS), if
10        applicable;
11            (C) each chemical anticipated to be intentionally
12        added to the base fluid, including for each chemical,
13        the Chemical Abstracts Service number, if applicable;
14        and
15            (D) the anticipated concentration, in percent by
16        mass, of each chemical to be intentionally added to the
17        base fluid;
18        (9) a certification of compliance with the Water Use
19    Act of 1983 and applicable regional water supply plans;
20        (10) a fresh water withdrawal and management plan that
21    shall include the following information:
22            (A) the source of the water, such as surface or
23        groundwater, anticipated to be used for water
24        withdrawals, and the anticipated withdrawal location;
25            (B) the anticipated volume and rate of each water
26        withdrawal from each withdrawal location;

 

 

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1            (C) the anticipated months when water withdrawals
2        shall be made from each withdrawal location;
3            (D) the methods to be used to minimize water
4        withdrawals as much as feasible; and
5            (E) the methods to be used for surface water
6        withdrawals to minimize adverse impact to aquatic
7        life.
8            Where a surface water source is wholly contained
9        within a single property, and the owner of the property
10        expressly agrees in writing to its use for water
11        withdrawals, the applicant is not required to include
12        this surface water source in the fresh water withdrawal
13        and management plan.
14        (11) a plan for the handling, storage, transportation,
15    and disposal or reuse of hydraulic fracturing fluids and
16    hydraulic fracturing flowback. The plan shall identify the
17    specific Class II injection well or wells that will be used
18    to dispose of the hydraulic fracturing flowback. The plan
19    shall describe the capacity of the tanks to be used for the
20    capture and storage of flowback and of the lined reserve
21    pit to be used, if necessary, to temporarily store any
22    flowback in excess of the capacity of the tanks.
23    Identification of the Class II injection well or wells
24    shall be by name, identification number, and specific
25    location and shall include the date of the most recent
26    mechanical integrity test for each Class II injection well;

 

 

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1        (12) a well site safety plan to address proper safety
2    measures to be employed during high volume horizontal
3    hydraulic fracturing operations for the protection of
4    persons on the site as well as the general public. Within
5    15 calendar days after submitting the permit application to
6    the Department, the applicant must provide a copy of the
7    plan to the county or counties in which hydraulic
8    fracturing operations will occur;
9        (13) a containment plan describing the containment
10    practices and equipment to be used and the area of the well
11    site where containment systems will be employed;
12        (14) a casing and cementing plan that describes the
13    casing and cementing practices to be employed, including
14    the size of each string of pipe, the starting point, and
15    depth to which each string is to be set and the extent to
16    which each string is to be cemented;
17        (15) a traffic management plan that identifies the
18    anticipated roads, streets, and highways that will be used
19    for access to and egress from the well site. The traffic
20    management plan will include a point of contact to discuss
21    issues related to traffic management. Within 10 calendar
22    days after submitting the permit application to the
23    Department, the applicant must provide a copy of the
24    traffic management plan to the county or counties in which
25    the well site is located;
26        (16) the names and addresses of all owners of any real

 

 

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1    property within 1,500 feet of the proposed well site, as
2    disclosed by the records in the office of the recorder of
3    the county or counties;
4        (17) drafts of the specific public notice and general
5    public notice as required by Section 40 of this Act;
6        (18) statement that the well site at which the high
7    volume horizontal hydraulic fracturing operation will be
8    conducted will be restored in compliance with Section
9    240.1181 of Title 62 of the Illinois Administrative Code
10    and Section 95 of this Act;
11        (19) proof of insurance to cover injuries, damages, or
12    loss related to pollution in the amount of at least
13    $5,000,0000; and
14        (20) any other relevant information which the
15    Department may, by rule, require.
16    (c) Where an application is made to conduct high volume
17horizontal fracturing operations at a well site located within
18the limits of any city, village, or incorporated town, the
19application shall state the name of the city village, or
20incorporated town and be accompanied with a certified copy of
21the official consent for the hydraulic fracturing operations to
22occur of the municipal authorities where the well site is
23proposed to be located. No permit shall be issued unless
24consent is secured and filed with the permit application. In
25the event that an amended location is selected, the original
26permit shall not be valid unless a new certified consent is

 

 

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1filed for the amended location.
2    (d) The hydraulic fracturing permit application shall be
3accompanied by a bond as required by subsection (a) of Section
465 of this Act.
5    (e) Each application for a permit under this Act shall
6include payment of a non-refundable permit fee. The applicable
7permit fee shall be deposited into the Mines and Minerals
8Regulatory Fund for the Department to use to administer and
9enforce this Act and otherwise support the operations and
10programs of the Office of Mines and Minerals. The Department
11shall not initiate its review of the permit application until
12the applicable fee under this subsection has been submitted to
13and received by the Department.
14    (f) Each application submitted under this Act shall be
15signed, under the penalty of perjury, by the applicant or the
16applicant's designee who has been vested with the authority to
17act on behalf of the applicant and has direct knowledge of the
18information contained in the application and its attachments.
19Any person signing an application shall also sign an affidavit
20with the following certification:
21        "I certify, under penalty of perjury as provided by law
22    and under penalty of refusal, suspension, or revocation of
23    a high volume horizontal hydraulic fracturing permit, that
24    this application and all attachments are true, accurate,
25    and complete to the best of my knowledge".
26    (g) The permit application shall be submitted to the

 

 

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1Department in both electronic and hard copy format. The
2electronic format shall be searchable.
3    (h) The application for a high volume horizontal hydraulic
4fracturing permit may be submitted as a combined permit
5application with the operator's application to drill on a form
6as the Department shall prescribe. The combined application
7must include the information required in this Section. If the
8operator elects to submit a combined permit application,
9information required by this Section that is duplicative of
10information required for an application to drill is only
11required to be provided once as part of the combined
12application. The submission of a combined permit application
13under this subsection shall not be interpreted to relieve the
14applicant or the Department from complying with the
15requirements of this Act or the Illinois Oil and Gas Act.
16    (i) Upon receipt of a permit application, the Department
17shall have no more than 60 calendar days from the date it
18receives the permit application to approve, with any conditions
19the Department may find necessary, or reject the application
20for the high volume horizontal hydraulic fracturing permit. The
21applicant may waive, in writing, the 60-day deadline upon their
22own initiative or in response to a request by the Department.
23    If at any time during the review period the Department
24determines that the permit application is not complete under
25this Act, does not meet the requirements of this Section, or
26requires additional information, the Department shall notify

 

 

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1the applicant in writing of the application's deficiencies and
2allow the applicant to correct the deficiencies and provide the
3Department any information requested to complete the
4application. If the applicant fails to provide adequate
5supplemental information within the review period, the
6Department may reject the application.
 
7    Section 40. Public notice.
8    (a) Within 5 calendar days after the Department's receipt
9of the high volume horizontal hydraulic fracturing
10application, the Department shall post notice of its receipt
11and a copy of the permit application on its website. The notice
12shall include the dates of the public comment period and
13directions for interested parties to submit comments.
14    (b) Within 5 calendar days after the Department's receipt
15of the permit application and notice to the applicant that the
16high volume horizontal hydraulic fracturing permit application
17was received, the Department shall provide the Agency, Illinois
18State Water Survey, and Illinois State Geological Survey with
19notice of the application.
20    (c) Upon notification that the Department has received the
21high volume horizontal hydraulic fracturing permit
22application, the applicant shall provide the following public
23notice:
24        (1) Applicants shall mail specific public notice by
25    U.S. Postal Service certified mail, return receipt

 

 

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1    requested, within 5 calendar days after notification by the
2    Department that the permit application was received, to all
3    persons identified as owners of real property within 1,500
4    feet of the proposed well site, as disclosed by the records
5    in the office of the recorder of the county or counties,
6    and to each municipality and county in which the well site
7    is proposed to be located.
8        (2) Applicants shall provide general public notice by
9    publication, once each week for 2 consecutive weeks
10    beginning no later than 3 calendar days after notification
11    by the Department that the permit application was received,
12    in a newspaper of general circulation published in each
13    county where the well proposed for high volume horizontal
14    hydraulic fracturing operations is proposed to be located.
15        (3) The specific and general public notices required
16    under this subsection shall contain the following
17    information:
18            (A) the name and address of the applicant;
19            (B) the date the application for high volume
20        horizontal hydraulic fracturing permit was filed;
21            (C) the dates for the public comment period and a
22        statement that anyone may file written comments about
23        any portion of the applicant's submitted high volume
24        horizontal hydraulic fracturing permit application
25        with the Department during the public comment period;
26            (D) the proposed well name, reference number

 

 

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1        assigned by the Department, and the address and legal
2        description of the well site and its unit area;
3            (E) a statement that the information filed by the
4        applicant in their application for a high volume
5        horizontal hydraulic fracturing permit is available by
6        the Department through its website;
7            (F) the Department's website and the address and
8        telephone number for the Department's Oil and Gas
9        Division;
10            (G) a statement that any person having an interest
11        that is or may be adversely affected, any government
12        agency that is or may be affected, or the county board
13        of a county to be affected under a proposed permit, may
14        file written objections to a permit application and may
15        request a public hearing.
16    (d) After providing the public notice as required under
17paragraph (2) of subsection (c) of this Section, the applicant
18shall supplement its permit application by providing the
19Department with a certification and documentation that the
20applicant fulfilled the public notice requirements of this
21Section. The Department shall not issue a permit until the
22applicant has provided the supplemental material required
23under this subsection.
24    (e) If multiple applications are submitted at the same time
25for wells located on the same well site, the applicant may use
26one public notice for all applications provided the notice is

 

 

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1clear that it pertains to multiple applications and conforms to
2the requirements of this Section. Notice shall not constitute
3standing for purposes of requesting a public hearing or for
4standing to appeal the decision of the Department in accordance
5with the Administrative Review Law.
 
6    Section 45. Public comment periods.
7    (a) The public comment period shall begin 7 calendar days
8after the Department's receipt of the permit application and
9last for 30 calendar days.
10    (b) Where a public hearing is conducted under Section 50 of
11this Act, the Department may provide for an additional public
12comment period of 15 days as necessary to allow for comments in
13response to evidence and testimony presented at the hearing.
14The additional public comment period shall begin on the day
15after the public hearing.
16    (c) During any public comment period, any person may file
17written comments to the Department concerning any portion of
18the permit application and any issue relating to the
19applicant's compliance with the requirements of the Act and any
20other applicable laws.
21    (d) The Department may request that the applicant respond
22to any substantive public comments obtained during the public
23comment period.
 
24    Section 50. High volume horizontal hydraulic fracturing

 

 

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1permit; hearing.
2    (a) When a permit application is submitted to conduct high
3volume horizontal hydraulic fracturing operations for the
4first time at a particular well site, any person having an
5interest that is or may be adversely affected, any government
6agency that is or may be affected, or the county board of a
7county to be affected under a proposed permit, may file written
8objections to the permit application and may request a public
9hearing during the public comment period established under
10subsection (a) of Section 45 of this Act. The request for
11hearing shall contain a short and plain statement identifying
12the person and stating facts demonstrating that the person has
13an interest that is or may be adversely affected. The
14Department shall hold a public hearing upon a request under
15this subsection, unless the request is determined by the
16Department to (i) lack an adequate factual statement that the
17person is or may be adversely affected or (ii) be frivolous.
18    (b) Prior to the commencement of a hearing, any person who
19could have requested the hearing under subsection (a) of this
20Section may petition the Department to participate in the
21hearing in the same manner as the party requesting the hearing.
22The petition shall contain a short and plain statement
23identifying the petitioner and stating facts demonstrating
24that the petitioner is a person having an interest that is or
25may be adversely affected. The petitioner shall serve the
26petition upon the Department. Unless the Department determines

 

 

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1that the petition is frivolous, or that the petitioner has
2failed to allege facts in support of an interest that is or may
3be adversely affected, the petitioner shall be allowed to
4participate in the hearing in the same manner as the party
5requesting the hearing.
6    (c) The public hearing to be conducted under this Section
7shall comply with the contested case requirements of the
8Illinois Administrative Procedure Act. The Department shall
9establish rules and procedures to determine whether any request
10for a public hearing may be granted, and for the notice and
11conduct of the public hearing. These procedural rules shall
12include provisions for reasonable notice to (i) the public and
13(ii) all parties to the proceeding, which include the applicant
14and the persons requesting the hearing, for the qualifications,
15powers, and obligations of the hearing officer, and for
16reasonable opportunity for all the parties to provide evidence
17and argument, to respond by oral or written testimony to
18statements and objections made at the public hearing, and for
19reasonable cross-examination of witnesses. County boards and
20the public may present their written objections or
21recommendations at the public hearing. A complete record of the
22hearings and all testimony shall be made by the Department and
23recorded stenographically or electronically. The complete
24record shall be maintained and shall be accessible to the
25public on the Department's website until final release of the
26applicant's performance bond.

 

 

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1    (d) At least 10 calendar days before the date of the public
2hearing, the Department shall publish notice of the public
3hearing in a newspaper of general circulation published in the
4county where the proposed well site will be located.
 
5    Section 53. High volume horizontal hydraulic fracturing
6permit; determination; judicial review.
7    (a) The Department shall issue a high volume horizontal
8hydraulic fracturing permit, with any conditions the
9Department may find necessary, only if the record of decision
10demonstrates that:
11        (1) the well location restrictions of Section 25 of
12    this Act have been satisfied;
13        (2) the application meets the requirements of Section
14    35 of this Act;
15        (3) the plans required to be submitted with the
16    application under Section 35 of this Act are adequate and
17    effective;
18        (4) the proposed hydraulic fracturing operations will
19    be conducted in a manner that will protect the public
20    health and safety and prevent pollution or diminution of
21    any water source;
22        (5) the work plan required under Section 80 of this Act
23    has been submitted to the Department;
24        (6) the applicant or any parent, subsidiary, or
25    affiliate thereof has not failed to abate a violation of

 

 

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1    this Act or the Illinois Oil and Gas Act;
2        (7) the Class II injection wells to be used for
3    disposal of hydraulic fracturing flowback comply with all
4    applicable requirements for mechanical integrity testing,
5    including that the well has been tested within the previous
6    5 years; and
7        (8) there is no good cause to deny the permit under
8    subsection (a) of Section 60 of this Act.
9    (b) For the purpose of determining whether to issue a
10permit, the Department shall consider and the Department's
11record of decision shall include:
12        (1) the application for the high volume horizontal
13    hydraulic fracturing permit, including all documentation
14    required by Section 35 of this Act;
15        (2) all written comments received during the public
16    comment periods and, if applicable, the complete record
17    from the public hearing held under Section 50 of this Act;
18        (3) all information provided by the applicant in
19    response to any public comments; and
20        (4) any information known to the Department as the
21    public entity responsible for regulating high volume
22    horizontal hydraulic fracturing operations, including, but
23    not limited to, inspections of the proposed well site as
24    necessary to ensure adequate review of the application.
25    (c) The Department shall, by U.S. Mail and electronic
26transmission, provide the applicant with a copy of the high

 

 

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1volume horizontal hydraulic fracturing permit as issued or its
2final administrative decision denying the permit to the
3applicant and shall, by U.S. Mail or electronic transmission,
4provide a copy of the permit as issued or the final
5administrative decision to any person or unit of local
6government who received specific public notice under Section 40
7of this Act or submitted comments or participated in any public
8hearing under Section 50 of this Act.
9    (d) The Department's decision to approve or deny a high
10volume horizontal hydraulic fracturing permit shall be
11considered a final administrative decision subject to judicial
12review under the Administrative Review Law and the rules
13adopted under that Law.
14    (e) Following completion of the Department's review and
15approval process, the Department's website shall indicate
16whether an individual high volume horizontal hydraulic
17fracturing permit was approved or denied and provide a copy of
18the approval or denial.
 
19    Section 55. High volume horizontal hydraulic fracturing
20permit; conditions; restriction; modifications.
21    (a) Each permit issued by the Department under this Act
22shall require the permittee to comply with all provisions of
23this Act and all other applicable local, State, and federal
24laws, rules, and regulations in effect at the time the permit
25is issued. All plans submitted with the application under

 

 

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1Section 35 shall be conditions of the permit.
2    (b) A permit issued under this Act shall continue in effect
3until plugging and restoration in compliance with this Act and
4the Illinois Oil and Gas Act are completed to the Department's
5satisfaction. No permit may be transferred to another person
6without approval of the Department.
7    (c) No permit issued under this Act may be modified without
8approval of the Department. If the Department determines that
9the proposed modifications constitute a significant deviation
10from the terms of the original application and permit approval,
11or presents a serious risk to public health, life, property,
12aquatic life, or wildlife, the Department shall provide the
13opportunities for comment and hearing required under Sections
1445 and 50 of this Act. The Department shall provide notice of
15the proposed modification and opportunity for comment and
16hearing to the persons who received specific public notice
17under Section 40 of this Act and shall publish the notice and
18the proposed modification on its website. When applying for a
19modified permit, the permittee shall submit a modification fee
20to the Department. The fee shall be deposited into the Mines
21and Minerals Regulatory Fund. The Department shall adopt rules
22regarding procedures for a permit modification.
 
23    Section 60. High volume horizontal hydraulic fracturing
24permit; denial, suspension, or revocation.
25    (a) The Department may suspend, revoke, or refuse to issue

 

 

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1a high volume horizontal hydraulic fracturing permit under this
2Act for one or more of the following causes:
3        (1) providing incorrect, misleading, incomplete, or
4    materially untrue information in a permit application or
5    any document required to be filed with the Department;
6        (2) violating any condition of the permit;
7        (3) violating any provision of or any regulation
8    adopted under this Act or the Illinois Oil and Gas Act;
9        (4) using fraudulent, coercive, or dishonest
10    practices, or demonstrating incompetence,
11    untrustworthiness, or financial irresponsibility in the
12    conduct of business in this State or elsewhere;
13        (5) having a high volume horizontal hydraulic
14    fracturing permit, or its equivalent, revoked in any other
15    state, province, district, or territory for incurring a
16    material or major violation or using fraudulent or
17    dishonest practices; or
18        (6) an emergency condition exists under which conduct
19    of the high volume horizontal hydraulic fracturing
20    operations would pose a significant hazard to public
21    health, aquatic life, wildlife, or the environment.
22    (b) In every case in which a permit is suspended or
23revoked, the Department shall serve notice of its action,
24including a statement of the reasons for the action, either
25personally or by certified mail, receipt return requested, to
26the permittee.

 

 

HB2615- 35 -LRB098 10864 MGM 41398 b

1    (c) The order of suspension or revocation of a permit shall
2take effect upon issuance of the order. The permittee may
3request, in writing, within 30 days after the date of receiving
4the notice, a hearing. Except as provided under subsection (d)
5of this Section, in the event a hearing is requested, the order
6shall remain in effect until a final order is entered pursuant
7to the hearing.
8    (d) The order of suspension or revocation of a permit may
9be stayed if requested by the permittee and evidence is
10submitted demonstrating that there is no significant threat to
11the public health, aquatic life, wildlife, or the environment
12if the operation is allowed to continue.
13    (e) The hearing shall be held at a time and place
14designated by the Department. The Director of the Department or
15any administrative law judge designated by him or her have the
16power to administer oaths and affirmations, subpoena witnesses
17and compel their attendance, take evidence, and require the
18production of books, papers, correspondence, and other records
19or information that he or she considers relevant or material.
20    (f) The costs of the administrative hearing shall be set by
21rule and shall be borne by the respondent.
22    (g) The Department's decision to suspend or revoke a high
23volume horizontal hydraulic fracturing permit is subject to
24judicial review under the Administrative Review Law.
 
25    Section 65. Hydraulic fracturing permit; bonds.

 

 

HB2615- 36 -LRB098 10864 MGM 41398 b

1    (a) An applicant for a high volume horizontal hydraulic
2fracturing permit under this Act shall provide a bond, executed
3by a surety authorized to transact business in this State. The
4bond shall be in the amount of $50,000 per permit or a blanket
5bond of $500,000 for all permits. If the applicant is required
6to submit a bond to the Department under the Illinois Oil and
7Gas Act, the applicant's submission of a bond under this
8Section shall satisfy the bonding requirements provided for in
9the Illinois Oil and Gas Act. In lieu of a bond, the applicant
10may provide other collateral securities such as cash,
11certificates of deposit, or irrevocable letters of credit under
12the terms and conditions as the Department may provide by rule.
13    (b) The bond or other collateral securities shall remain in
14force until the well is plugged and abandoned. Upon abandoning
15a well to the satisfaction of the Department and in accordance
16with the Illinois Oil and Gas Act, the bond or other collateral
17securities shall be promptly released by the Department. Upon
18the release by the Department of the bond or other collateral
19securities, any cash or collateral securities deposited shall
20be returned by the Department to the applicant who deposited
21it.
22    (c) If, after notice and hearing, the Department determines
23that any of the requirements of this Act or rules adopted under
24this Act or the orders of the Department have not been complied
25with within the time limit set by any notice of violation
26issued under this Act, the permittee's bond or other collateral

 

 

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1securities shall be forfeited. Forfeiture under this
2subsection shall not limit any duty of the permittee to
3mitigate or remediate harms or foreclose enforcement by the
4Department or the Agency. In no way will payment under this
5bond exceed the aggregate penalty as specified.
6    (d) When any bond or other collateral security is forfeited
7under the provisions of this Act or rules adopted under this
8Act, the Department shall collect the forfeiture without delay.
9The surety shall have 30 days to submit payment for the bond
10after receipt of notice by the permittee of the forfeiture.
11    (e) All forfeitures shall be deposited in the Mines and
12Minerals Regulatory Fund to be used, as necessary, to mitigate
13or remediate violations of this Act or rules adopted under this
14Act.
 
15    Section 70. Well preparation, construction, and drilling.
16    (a) This Section shall apply to all horizontal wells that
17are to be completed using high volume horizontal hydraulic
18fracturing operations under a high volume horizontal hydraulic
19fracturing permit. The requirements of this Section shall be in
20addition to any other laws or rules regarding wells and well
21sites.
22    (b) Site preparation standards shall be as follows:
23        (1) The access road to the well site must be located in
24    accordance with access rights identified in the Illinois
25    Oil and Gas Act and located as far as practical from

 

 

HB2615- 38 -LRB098 10864 MGM 41398 b

1    occupied structures, places of assembly, and property
2    lines of unleased property.
3        (2) Unless otherwise approved or directed by the
4    Department, all topsoil stripped to facilitate the
5    construction of the well pad and access roads must be
6    stockpiled, stabilized, and remain on site for use in
7    either partial or final reclamation. In the event it is
8    anticipated that the final reclamation shall take place in
9    excess of one year from drilling the well the topsoil may
10    be disposed of in any lawful manner provided the operator
11    reclaims the site with topsoil of similar characteristics
12    of the topsoil removed.
13        (3) Piping, conveyances, valves, and tanks in contact
14    with hydraulic fracturing fluid, hydraulic fracturing
15    flowback, or produced water must be constructed of
16    materials compatible with the composition of the hydraulic
17    fracturing fluid, hydraulic fracturing flowback, and
18    produced water.
19    (c) Site maintenance standards shall be as follows:
20        (1) Secondary containment is required for all fueling
21    tanks.
22        (2) Fueling tanks shall be subject to Section 25 of
23    this Act.
24        (3) Fueling tank filling operations shall be
25    supervised at the fueling truck and at the tank if the tank
26    is not visible to the fueling operator from the truck.

 

 

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1        (4) Troughs, drip pads, or drip pans are required
2    beneath the fill port of a fueling tank during filling
3    operations if the fill port is not within the secondary
4    containment required by paragraph (1) of this subsection.
5    (d) All wells shall be constructed, and casing and
6cementing activities shall be conducted, in a manner that shall
7provide for control of the well at all times, prevent the
8migration of oil, gas, and other fluids into the fresh
9groundwater and coal seams, and prevent pollution or diminution
10of fresh groundwater. In addition to any of the Department's
11casing and cementing requirements, the following shall apply:
12        (1) All casings must conform to the current industry
13    standards published by the American Petroleum Institute.
14        (2) Casing thread compound and its use must conform to
15    the current industry standards published by the American
16    Petroleum Institute.
17        (3) Surface casing shall be centralized at the shoe,
18    above and below a stage collar or diverting tool, if run,
19    and through usable-quality water zones. In non-deviated
20    holes, pipe centralization as follows is required: a
21    centralizer shall be placed every fourth joint from the
22    cement shoe to the ground surface or to the bottom of the
23    cellar. All centralizers shall meet specifications in, or
24    equivalent to, API spec 10D, Specification for Bow-Spring
25    Casing Centralizers; API Spec 10 TR4, Technical Report on
26    Considerations Regarding Selection of Centralizers for

 

 

HB2615- 40 -LRB098 10864 MGM 41398 b

1    Primary Cementing Operations; and API RP 10D-2,
2    Recommended Practice for Centralizer Placement and Stop
3    Collar Testing; The Department may require additional
4    centralization as necessary to ensure the integrity of the
5    well design is adequate. All centralizers must conform to
6    the current industry standards published by the American
7    Petroleum Institute.
8        (4) Cement must conform to current industry standards
9    published by the American Petroleum Institute and the
10    cement slurry must be prepared to minimize its free water
11    content in accordance with the current industry standards
12    published by the American Petroleum Institute; the cement
13    must also:
14            (A) secure the casing in the wellbore;
15            (B) isolate and protect fresh groundwater;
16            (C) isolate abnormally pressured zones, lost
17        circulation zones, and any potential flow zones
18        including hydrocarbon and fluid-bearing zones;
19            (D) properly control formation pressure and any
20        pressure from drilling, completion and production;
21            (E) protect the casing from corrosion and
22        degradation; and
23            (F) prevent gas flow in the annulus.
24        (5) Prior to cementing any casing string, the borehole
25    must be circulated and conditioned to ensure an adequate
26    cement bond.

 

 

HB2615- 41 -LRB098 10864 MGM 41398 b

1        (6) A pre-flush or spacer must be pumped ahead of the
2    cement.
3        (7) The cement must be pumped at a rate and in a flow
4    regime that inhibits channeling of the cement in the
5    annulus.
6        (8) Cement compressive strength tests must be
7    performed on all surface, intermediate, and production
8    casing strings; after the cement is placed behind the
9    casing, the operator shall wait on cement to set until the
10    cement achieves a calculated compressive strength of at
11    least 500 pounds per square inch, and a minimum of 8 hours
12    before the casing is disturbed in any way, including
13    installation of a blowout preventer. The cement shall have
14    a 72-hour compressive strength of at least 1,200 psi, and
15    the free water separation shall be no more than 6
16    milliliters per 250 milliliters of cement, tested in
17    accordance with current American petroleum Institute
18    standards.
19        (9) A copy of the cement job log for any cemented
20    casing string in the well shall be maintained in the well
21    file and available to the Department upon request.
22        (10) Surface casing shall be used and set to a depth of
23    at least 200 feet, or 100 feet below the base of the
24    deepest fresh water, whichever is deeper, but no more than
25    200 feet below the base of the deepest fresh water and
26    prior to encountering any hydrocarbon-bearing zones. The

 

 

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1    surface casing must be run and cemented as soon as
2    practicable after the hole has been adequately circulated
3    and conditioned.
4        (11) The Department must be notified at least 24 hours
5    prior to surface casing cementing operations. Surface
6    casing must be fully cemented to the surface with excess
7    cements. Cementing must be by the pump and plug method with
8    a minimum of 25% excess cement with appropriate lost
9    circulation material, unless another amount of excess
10    cement is approved by the Department. If cement returns are
11    not observed at the surface, the operator must perform
12    remedial actions as appropriate.
13        (12) Intermediate casing must be installed when
14    necessary to isolate fresh water not isolated by surface
15    casing and to seal off potential flow zones, anomalous
16    pressure zones, lost circulation zones and other drilling
17    hazards.
18        Intermediate casing must be set to protect fresh water
19    if surface casing was set above the base of the deepest
20    fresh water, if additional fresh water was found below the
21    surface casing shoe, or both. Intermediate casing used to
22    isolate fresh water must not be used as the production
23    string in the well in which it is installed, and may not be
24    perforated for purposes of conducting a hydraulic fracture
25    treatment through it.
26        When intermediate casing is installed to protect fresh

 

 

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1    water, the operator shall set a full string of new
2    intermediate casing at least 100 feet below the base of the
3    deepest fresh water and bring cement to the surface. In
4    instances where intermediate casing was set solely to
5    protect fresh water encountered below the surface casing
6    shoe, and cementing to the surface is technically
7    infeasible, would result in lost circulation, or both,
8    cement must be brought to a minimum of 600 feet above the
9    shallowest fresh water zone encountered below the surface
10    casing shoe or to the surface if the fresh water zone is
11    less than 600 feet from the surface. The location and
12    depths of any hydrocarbon-bearing zones or fresh water
13    zones that are open to the wellbore above the casing shoe
14    must be confirmed by coring, electric logs, or testing and
15    must be reported to the Department.
16        In the case that intermediate casing was set for a
17    reason other than to protect strata that contains fresh
18    water, the intermediate casing string shall be cemented
19    from the shoe to a point at least 600 true vertical feet
20    above the shoe. If there is a hydrocarbon bearing zone
21    capable of producing exposed above the intermediate casing
22    shoe, the casing shall be cemented from the shoe to a point
23    at least 600 true vertical feet above the shallowest
24    hydrocarbon bearing zone or to a point at least 200 feet
25    above the shoe of the next shallower casing string that was
26    set and cemented in the well (or to the surface if less

 

 

HB2615- 44 -LRB098 10864 MGM 41398 b

1    than 200 feet).
2        (13) The Department must be notified prior to
3    intermediate casing cementing operations. Cementing must
4    be by the pump and plug method with a minimum of 25% excess
5    cement. A radial cement bond evaluation log, or other
6    evaluation approved by the Department, must be run to
7    verify the cement bond on the intermediate casing. Remedial
8    cementing is required if the cement bond is not adequate
9    for drilling ahead.
10        (14) Production casing must be run and fully cemented
11    to 500 feet above the top perforated zone, if possible. The
12    Department must be notified at least 24 hours prior to
13    production casing cementing operations. Cementing must be
14    by the pump and plug method with a minimum of 25% excess
15    cement.
16        (15) At any time, the Department, as it deems
17    necessary, may require installation of an additional
18    cemented casing string or strings in the well.
19        (16) After the setting and cementing of a casing
20    string, except the conductor casing, and prior to further
21    drilling, the casing string shall be tested with fresh
22    water, mud, or brine to at least the maximum anticipated
23    treatment pressure but no less than 0.22 psi per foot of
24    casing string length or 1,500 psi, whichever is greater,
25    for at least 30 minutes with less than a 5% pressure loss.
26    The pressure test shall not exceed 70% of the minimum

 

 

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1    internal yield. If the pressure declines more than 5% or if
2    there are other indications of a leak, corrective action
3    shall be taken before conducting further drilling and high
4    volume horizontal hydraulic fracturing operations. The
5    operator shall contact the Department's District Office
6    for any county in which the well is located at least 24
7    hours prior to conducting a pressure test to enable an
8    inspector to be present when the test is done. A record of
9    the pressure test must be maintained by the operator and
10    must be submitted to the Department on a form prescribed by
11    the Department prior to conducting high volume horizontal
12    hydraulic fracturing operations. The actual pressure must
13    not exceed the test pressure at any time during high volume
14    horizontal hydraulic fracturing operations.
15        (17) Any hydraulic fracturing string used in the high
16    volume horizontal hydraulic fracturing operations must be
17    either strung into a production liner or run with a packer
18    set at least 100 feet below the deepest cement top and must
19    be tested to not less than the maximum anticipated treating
20    pressure minus the annulus pressure applied between the
21    fracturing string and the production or immediate casing.
22    The pressure test shall be considered successful if the
23    pressure applied has been held for 30 minutes with no more
24    than 5% pressure loss. A function-tested relief valve and
25    diversion line must be installed and used to divert flow
26    from the hydraulic fracturing string-casing annulus to a

 

 

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1    covered watertight steel tank in case of hydraulic
2    fracturing string failure. The relief valve must be set to
3    limit the annular pressure to no more than 95% of the
4    working pressure rating of the casings forming the annulus.
5    The annulus between the hydraulic fracturing string and
6    casing must be pressurized to at least 250 psi and
7    monitored.
8        (18) After a successful pressure test under paragraph
9    (16) of this subsection, a formation pressure integrity
10    test must be conducted below the surface casing and below
11    all intermediate casing. The operator shall notify the
12    Department's District Office for any county in which the
13    well is located at least 24 hours prior to conducting a
14    formation pressure integrity test to enable an inspector to
15    be present when the test is done. A record of the pressure
16    test must be maintained by the operator and must be
17    submitted to the Department on a form prescribed by the
18    Department prior to conducting high volume horizontal
19    hydraulic fracturing operations. The actual hydraulic
20    fracturing treatment pressure must not exceed the test
21    pressure at any time during high volume horizontal
22    hydraulic fracturing operations.
23    (e) Blowout prevention standards shall be set as follows:
24            (1) The operator shall use blowout prevention
25        equipment after setting casing with a competent casing
26        seat. Blowout prevention equipment shall be in good

 

 

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1        working condition at all times.
2            (2) The operator shall use pipe fittings, valves,
3        and unions placed on or connected to the blow-out
4        prevention systems that have a working pressure
5        capability that exceeds the anticipated pressures.
6            (3) During all drilling and completion operations
7        when a blowout preventer is installed, tested, or in
8        use, the operator or operator's designated
9        representative shall be present at the well site and
10        that person or personnel shall have a current well
11        control certification from an accredited training
12        program that is acceptable to the Department. The
13        certification shall be available at the well site and
14        provided to the Department upon request.
15            (4) Appropriate pressure control procedures and
16        equipment in proper working order must be properly
17        installed and employed while conducting drilling and
18        completion operations including tripping, logging,
19        running casing into the well, and drilling out
20        solid-core stage plugs.
21            (5) Pressure testing of the blowout preventer and
22        related equipment for any drilling or completion
23        operation must be performed. Testing must be conducted
24        in accordance with industry standards. Testing of the
25        blowout preventer shall include testing after the
26        blowout preventer is installed on the well but prior to

 

 

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1        drilling below the last cemented casing seat. Pressure
2        control equipment, including the blowout preventer,
3        that fails any pressure test shall not be used until it
4        is repaired and passes the pressure test.
5            (6) A remote blowout preventer actuator, that is
6        powered by a source other than rig hydraulics, shall be
7        located at least 50 feet from the wellhead and have an
8        appropriate rated working pressure.
 
9    Section 75. High volume horizontal hydraulic fracturing
10operations.
11    (a) General.
12        (1) During all phases of high volume horizontal
13    hydraulic fracturing operations, the permittee shall
14    comply with all terms of the permit.
15        (2) All phases of high volume horizontal hydraulic
16    fracturing operations shall be conducted in a manner that
17    shall not pose a significant risk to public health, life,
18    property, aquatic life, or wildlife.
19        (3) The permittee shall notify the Department by phone,
20    electronic communication, or letter, at least 48 hours
21    prior to the commencement of high volume horizontal
22    hydraulic fracturing operations.
23    (b) Integrity tests and monitoring.
24        (1) Before the commencement of high volume horizontal
25    hydraulic fracturing operations, all mechanical integrity

 

 

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1    tests required under subsection (d) of Section 70 and this
2    subsection must be successfully completed.
3        (2) Prior to commencing high volume horizontal
4    hydraulic fracturing operations and pumping of hydraulic
5    fracturing fluid, the injection lines and manifold,
6    associated valves, fracture head or tree and any other
7    wellhead component or connection not previously tested
8    must be tested with fresh water, mud, or brine to at least
9    the maximum anticipated treatment pressure for at least 30
10    minutes with less than a 5% pressure loss. A record of the
11    pressure test must be maintained by the operator and made
12    available to the Department upon request. The actual high
13    volume horizontal hydraulic fracturing treatment pressure
14    must not exceed the test pressure at any time during high
15    volume horizontal hydraulic fracturing operations.
16        (3) The pressure exerted on treating equipment
17    including valves, lines, manifolds, hydraulic fracturing
18    head or tree, casing and hydraulic fracturing string, if
19    used, must not exceed 95% of the working pressure rating of
20    the weakest component. The high volume horizontal
21    hydraulic fracturing treatment pressure must not exceed
22    the test pressure of any given component at any time during
23    high volume horizontal hydraulic fracturing operations.
24        (4) During high volume horizontal hydraulic fracturing
25    operations, all annulus pressures, the injection pressure,
26    and the rate of injection shall be continuously monitored

 

 

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1    and recorded. The records of the monitoring shall be
2    maintained by the operator and shall be provided to the
3    Department upon request at any time during the period up to
4    and including 5 years after the well is permanently plugged
5    or abandoned.
6        (5) High volume horizontal hydraulic fracturing
7    operations must be immediately suspended if any anomalous
8    pressure or flow condition or any other anticipated
9    pressure or flow condition is occurring in a way that
10    indicates the mechanical integrity of the well has been
11    compromised and continued operations pose a risk to the
12    environment. Remedial action shall be undertaken
13    immediately prior to recommencing high volume horizontal
14    hydraulic fracturing operations. The permittee shall
15    notify the Department within 1 hour of suspending
16    operations for any matters relating to the mechanical
17    integrity of the well or risk to the environment.
18    (c) Fluid and waste management.
19        (1) For the purposes of storage at the well site and
20    except as provided in paragraph (2) of this subsection,
21    hydraulic fracturing additives, hydraulic fracturing
22    fluid, hydraulic fracturing flowback, and produced water
23    shall be stored in above-ground tanks during all phases of
24    drilling, high volume horizontal hydraulic fracturing, and
25    production operations until removed for proper disposal.
26    For the purposes of centralized storage off site for

 

 

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1    potential reuse prior to disposal, hydraulic fracturing
2    additives, hydraulic fracturing fluid, hydraulic
3    fracturing flowback, and produced water shall be stored in
4    above-ground tanks.
5        (2) In accordance with the plan required by paragraph
6    (11) of subsection (b) of Section 35 of this Act and as
7    approved by the Department, the use of a reserve pit is
8    allowed for the temporary storage of hydraulic fracturing
9    flowback. The reserve pit shall be used only in the event
10    of a lack of capacity for tank storage due to higher than
11    expected volume or rate of hydraulic fracturing flowback,
12    or other unanticipated flowback occurrence. Any reserve
13    pit must comply with the following construction standards
14    and liner specifications:
15            (A) the synthetic liner material shall have a
16        minimum thickness of 24 mils with high puncture and
17        tear strength and be impervious and resistant to
18        deterioration;
19            (B) the pit lining system shall be designed to have
20        a capacity at least equivalent to 110% of the maximum
21        volume of hydraulic fracturing flowback anticipated to
22        be recovered;
23            (C) the lined pit shall be constructed, installed,
24        and maintained in accordance with the manufacturers'
25        specifications and good engineering practices to
26        prevent overflow during any use;

 

 

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1            (D) the liner shall have sufficient elongation to
2        cover the bottom and interior sides of the pit with the
3        edges secured with at least a 12 inch deep anchor
4        trench around the pit perimeter to prevent any slippage
5        or destruction of the liner materials; and
6            (E) the foundation for the liner shall be free of
7        rock and constructed with soil having a minimum
8        thickness of 12 inches after compaction covering the
9        entire bottom and interior sides of the pit.
10        (3) Fresh water may be stored in tanks or pits at the
11    election of the operator.
12        (4) Tanks required under this subsection must be
13    above-ground tanks that are closed, watertight, and will
14    resist corrosion. The permittee shall routinely inspect
15    the tanks for corrosion.
16        (5) Hydraulic fracturing fluids and hydraulic
17    fracturing flowback must be removed from the well site
18    within 60 days after completion of high volume horizontal
19    fracturing operations, except that any excess hydraulic
20    fracturing flowback captured for temporary storage in a
21    reserve pit as provided in paragraph (2) of this subsection
22    must be removed from the well site within 7 days.
23        (6) Tanks, piping, and conveyances, including valves,
24    must be constructed of suitable materials, be of sufficient
25    pressure rating, be able to resist corrosion, and be
26    maintained in a leak-free condition. Fluid transfer

 

 

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1    operations from tanks to tanker trucks must be supervised
2    at the truck and at the tank if the tank is not visible to
3    the truck operator from the truck. During transfer
4    operations, all interconnecting piping must be supervised
5    if not visible to transfer personnel at the truck and tank.
6        (7) Hydraulic fracturing flowback must be tested for
7    volatile organic chemicals, semi-volatile organic
8    chemicals, inorganic chemicals, heavy metals, and
9    naturally occurring radioactive material prior to removal
10    from the site. Testing shall occur once per well site and
11    the analytical results shall be filed with the Department
12    and the Agency, and provided to the liquid oilfield waste
13    transportation and disposal operators. Prior to plugging
14    and site restoration, the ground adjacent to the storage
15    tanks and any hydraulic fracturing flowback reserve pit
16    must be measured for radioactivity.
17        (8) Hydraulic fracturing flowback may only be disposed
18    of by injection into a Class II injection well that is
19    below interface between fresh water and naturally
20    occurring Class IV groundwater. Produced water may be
21    disposed of by injection in a permitted water flood
22    operation. Hydraulic fracturing flowback and produced
23    water may be treated and recycled for use in hydraulic
24    fracturing fluid for high volume horizontal hydraulic
25    fracturing operations.
26        (9) Discharge of hydraulic fracturing fluids,

 

 

HB2615- 54 -LRB098 10864 MGM 41398 b

1    hydraulic fracturing flowback, and produced water into any
2    surface water or water drainage way is prohibited.
3        (10) Transport of all hydraulic fracturing fluids,
4    hydraulic fracturing flowback, and produced water by
5    vehicle for disposal must be undertaken by a liquid
6    oilfield waste hauler permitted by the Department under
7    Section 8c of the Illinois Oil and Gas Act. The liquid
8    oilfield waste hauler transporting hydraulic fracturing
9    fluids, hydraulic fracturing flowback, or produced water
10    under this Act shall comply with all laws, rules, and
11    regulations concerning liquid oilfield waste.
12        (11) Drill cuttings, drilling fluids, and drilling
13    wastes not containing oil-based mud or polymer-based mud
14    may be stored in tanks or pits. Pits used to store
15    cuttings, fluids, and drilling wastes from wells not using
16    fresh water mud shall be subject to the construction
17    standards identified in (2) of this Section. Drill cuttings
18    not contaminated with oil-based mud or polymer-based mud
19    may be disposed of onsite subject to the approval of the
20    Department. Drill cuttings contaminated with oil-based mud
21    or polymer-based mud shall not be disposed of on site.
22    Annular disposal of drill cuttings or fluid is prohibited.
23        (12) Any release of hydraulic fracturing fluid,
24    hydraulic fracturing additive, or hydraulic fracturing
25    flowback, used or generated during or after high volume
26    horizontal hydraulic fracturing operations shall be

 

 

HB2615- 55 -LRB098 10864 MGM 41398 b

1    immediately cleaned up and remediated pursuant to
2    Department requirements. Any release of hydraulic
3    fracturing fluid or hydraulic fracturing flowback in
4    excess of 1 barrel, shall be reported to the Department.
5    Any release of a hydraulic fracturing additive shall be
6    reported to the Department in accordance with the
7    appropriate reportable quantity thresholds established
8    under the federal Emergency Planning and Community
9    Right-to-Know Act as published in the Code of Federal
10    Regulations (CFR), 40 CFR Parts 355, 370, and 372, the
11    federal Comprehensive Environmental Response,
12    Compensation, and Liability Act as published in 40 CFR Part
13    302, and subsection (r) of Section 112 of the Federal Clean
14    Air Act as published in 40 CFR Part 68. Any release of
15    produced water in excess of 5 barrels shall be cleaned up,
16    remediated, and reported pursuant to Department
17    requirements.
18        (13) Secondary containment for tanks required under
19    this subsection and additive staging areas is required.
20    Secondary containment measures may include, as deemed
21    appropriate by the Department, one or a combination of the
22    following: dikes, liners, pads, impoundments, curbs,
23    sumps, or other structures or equipment capable of
24    containing the substance. Any secondary containment must
25    be sufficient to contain 110% of the total capacity of the
26    single largest container or tank within a common

 

 

HB2615- 56 -LRB098 10864 MGM 41398 b

1    containment area. No more than one hour before initiating
2    any stage of the high volume horizontal hydraulic
3    fracturing operations, all secondary containment must be
4    visually inspected to ensure all structures and equipment
5    are in place and in proper working order. The results of
6    this inspection must be recorded and documented by the
7    operator, and available to the Department upon request.
8        (14) A report on the transportation and disposal of the
9    hydraulic fracturing fluids and hydraulic fracturing
10    flowback shall be prepared and included in the well file.
11    The report must include the amount of fluids transported,
12    identification of the company that transported the fluids,
13    the destination of the fluids, and the method of disposal.
14        (15) Operators operating wells permitted under this
15    Act must submit an annual report to the Department
16    detailing the management of any produced water associated
17    with the permitted well. The report shall be due to the
18    Department no later than April 30th of each year and shall
19    provide information on the operator's management of any
20    produced water for the prior calendar year. The report
21    shall contain information relative to the amount of
22    produced water the well permitted under this Act produced,
23    the method witch which the produced water was disposed, and
24    the destination where the produced water was disposed in
25    addition to any other information the Department
26    determines is necessary by rule.

 

 

HB2615- 57 -LRB098 10864 MGM 41398 b

1    (d) Hydraulic fracturing fluid shall be confined to the
2targeted formation designated in the permit. If the hydraulic
3fracturing fluid or hydraulic fracturing flowback are
4migrating into the freshwater zone or to the surface from the
5well in question or from other wells, the permittee shall
6immediately notify the Department and shut in the well until
7remedial action that prevents the fluid migration is completed.
8The permittee shall obtain the approval of the Department prior
9to resuming operations.
10    (e) Emissions controls.
11        (1) This subsection applies to all horizontal wells
12    that are completed with high volume horizontal hydraulic
13    fracturing.
14        (2) Except as otherwise provided in paragraph (8) of
15    this subsection (e), permittees shall be responsible for
16    managing gas and hydrocarbon fluids produced during the
17    flowback period by routing recovered hydrocarbon fluids to
18    one or more storage vessels or re-injected into the well or
19    another well, and routing recovered natural gas into a flow
20    line or collection system, re-injecting the gas into the
21    well or another well, using the gas as an on-site fuel
22    source, or using the gas for another useful purpose that a
23    purchased fuel or raw material would serve, with no direct
24    release to the atmosphere.
25        (3) If it is technically infeasible or economically
26    unreasonable to minimize emissions associated with the

 

 

HB2615- 58 -LRB098 10864 MGM 41398 b

1    venting of hydrocarbon fluids and natural gas during the
2    flowback period using the methods specified in paragraph
3    (2) of this subsection (e), the permittee shall capture and
4    direct the emissions to a completion combustion device,
5    except in conditions that may result in a fire hazard or
6    explosion, or where high heat emissions from a completion
7    combustion device may negatively impact waterways.
8    Completion combustion devices must be equipped with a
9    reliable continuous ignition source over the duration of
10    the flowback period.
11        (4) Except as otherwise provided in paragraph (8) of
12    this subsection (e), permittees shall be responsible for
13    minimizing the emissions associated with venting of
14    hydrocarbon fluids and natural gas during the production
15    phase by:
16            (A) routing the recovered fluids into storage
17        vessels and (i) routing the recovered gas into a gas
18        gathering line, collection system, or to a generator
19        for onsite energy generation, providing that gas to the
20        surface owner of the well site for use for heat or
21        energy generation, or (ii) using another method other
22        than venting; and
23            (B) employing sand traps, surge vessels,
24        separators, and tanks as soon as practicable during
25        cleanout operations to safely maximize resource
26        recovery and minimize releases to the environment.

 

 

HB2615- 59 -LRB098 10864 MGM 41398 b

1        (5) If the permittee establishes that it is technically
2    infeasible or economically unreasonable to minimize
3    emissions associated with the venting of hydrocarbon
4    fluids and natural gas during production using the methods
5    specified in paragraph (4) of this subsection (e), the
6    Department shall require the permittee to capture and
7    direct any natural gas produced during the production phase
8    to a flare. Any flare used pursuant to this paragraph shall
9    be equipped with a reliable continuous ignition source over
10    the duration of production. In order to establish technical
11    infeasibility or economic unreasonableness under this
12    paragraph (5), the permittee must demonstrate, for each
13    well site on an annual basis, that taking the actions
14    listed in paragraph (4) of this subsection (e) are not cost
15    effective based on a site-specific analysis. Permittees
16    that use a flare during the production phase for operations
17    other than emergency conditions shall file an updated
18    site-specific analysis annually with the Department. The
19    analysis shall be due one year from the date of the
20    previous submission and shall detail whether any changes
21    have occurred that alter the technical infeasibility or
22    economic unreasonableness of the permittee to reduce their
23    emissions in accordance with paragraph (4) of this
24    subsection (e).
25        (6) Uncontrolled emissions exceeding 6 tons per year
26    from storage tanks shall be recovered and routed to a flare

 

 

HB2615- 60 -LRB098 10864 MGM 41398 b

1    that is designed in accordance with 40 CFR 60.18 and is
2    certified by the manufacturer of the device. The permittee
3    shall maintain and operate the flare in accordance with
4    manufacturer specifications. Any flare used under this
5    paragraph must be equipped with a reliable continuous
6    ignition source over the duration of production.
7        (7) The Department may approve an exemption that waives
8    the requirements of paragraphs (5) and (6) of this
9    subsection (e) only if the permittee demonstrates that the
10    use of the flare will pose a significant risk of injury or
11    property damage and that alternative methods of collection
12    will not threaten harm to the environment. In determining
13    whether to approve a waiver, the Department shall consider
14    the quantity of casinghead gas produced, the topographical
15    and climatological features at the well site, and the
16    proximity of agricultural structures, crops, inhabited
17    structures, public buildings, and public roads and
18    railways.
19        (8) For each wildcat well, delineation well, or low
20    pressure well, permittees shall be responsible for
21    minimizing the emissions associated with venting of
22    hydrocarbon fluids and natural gas during the flowback
23    period and production phase by capturing and directing the
24    emissions to a completion combustion device during the
25    flowback period and to a flare during the production phase,
26    except in conditions that may result in a fire hazard or

 

 

HB2615- 61 -LRB098 10864 MGM 41398 b

1    explosion, or where high heat emissions from a completion
2    combustion device or flare may negatively impact
3    waterways. Completion combustion devices and flares shall
4    be equipped with a reliable continuous ignition source over
5    the duration of the flowback period and the production
6    phase, as applicable.
7        (9) On or after July 1, 2015, all flares used under
8    paragraphs (5) and (8) of this subsection (e) shall (i)
9    operate with a combustion efficiency of at least 98%, in
10    accordance with 40 CFR 60.18; and (ii) be certified by the
11    manufacturer of the device. The permittee shall maintain
12    and operate the flare in accordance with manufacturer
13    specifications.
14        (10) Permittees shall employ practices for control of
15    fugitive dust related to their operations. These practices
16    shall include, but are not limited to, the use of speed
17    restrictions, regular road maintenance, and restriction of
18    construction activity during high-wind days. Additional
19    management practices such as road surfacing, wind breaks
20    and barriers, or automation of wells to reduce truck
21    traffic may also be required by the Department if
22    technologically feasible and economically reasonable to
23    minimize fugitive dust emissions.
24        (11) Permittees shall record and report to the
25    Department on an annual basis the amount of gas flared or
26    vented from each high volume horizontal hydraulic

 

 

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1    fracturing well. Three years after the effective date of
2    the first high-volume horizontal hydraulic fracturing well
3    permit issued by the Department, and every 3 years
4    thereafter, the Department shall prepare a report that
5    analyzes the amount of gas that has been flared or vented
6    and make recommendations to the General Assembly on whether
7    steps should be taken to reduce the amount of gas that is
8    being flared or vented in this State.
9    (f) High volume horizontal hydraulic fracturing operations
10completion report. Within 60 calendar days after the conclusion
11of high volume horizontal hydraulic fracturing operations, the
12operator shall file a high volume horizontal hydraulic
13fracturing operations completion report with the Department. A
14copy of each completion report submitted to the Department
15shall be provided by the Department to the Illinois State
16Geological Survey. The completion reports required by this
17Section shall be considered public information and shall be
18made available on the Department's website. The high volume
19horizontal hydraulic fracturing operations completion report
20shall contain the following information:
21        (1) the permittee name as listed in the permit
22    application;
23        (2) the dates of the high volume horizontal hydraulic
24    fracturing operations;
25        (3) the county where the well is located;
26        (4) the well name and Department reference number;

 

 

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1        (5) the total water volume used in the high volume
2    horizontal hydraulic fracturing operations of the well,
3    and the type and total volume of the base fluid used if
4    something other than water;
5        (6) each source from which the water used in the high
6    volume horizontal hydraulic fracturing operations was
7    drawn, and the specific location of each source, including,
8    but not limited to, the name of the county and latitude and
9    longitude coordinates;
10        (7) the quantity of hydraulic fracturing flowback
11    recovered from the well;
12        (8) a description of how hydraulic fracturing flowback
13    recovered from the well was disposed and, if applicable,
14    reused;
15        (9) a chemical disclosure report identifying each
16    chemical and proppant used in hydraulic fracturing fluid
17    for each stage of the hydraulic fracturing operations
18    including the following:
19            (A) the total volume of water used in the hydraulic
20        fracturing treatment of the well or the type and total
21        volume of the base fluid used in the hydraulic
22        fracturing treatment, if something other than water;
23            (B) each hydraulic fracturing additive used in the
24        hydraulic fracturing fluid, including the trade name,
25        vendor, a brief descriptor of the intended use or
26        function of each hydraulic fracturing additive, and

 

 

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1        the Material Safety Data Sheet (MSDS), if applicable;
2            (C) each chemical intentionally added to the base
3        fluid, including for each chemical, the Chemical
4        Abstracts Service number, if applicable; and
5            (D) the actual concentration, in percent by mass,
6        of each chemical intentionally added to the base fluid;
7        (10) all pressures recorded during the high volume
8    horizontal hydraulic fracturing operations; and
9        (11) any other reasonable or pertinent information
10    related to the conduct of the high volume horizontal
11    hydraulic fracturing operations the Department may request
12    or require by administrative rule.
 
13    Section 77. Chemical disclosure; trade secret protection.
14    (a) If the chemical disclosure information required by
15paragraph (8) of subsection (b) of Section 35 of this Act is
16not submitted at the time of permit application, then the
17permittee, applicant, or person who will perform high volume
18horizontal hydraulic fracturing operations at the well shall
19submit this information to the Department in electronic format
20no less than 21 calendar days prior to performing the high
21volume horizontal hydraulic fracturing operations. The
22permittee shall not cause or allow any stimulation of the well
23if it is not in compliance with this Section. Nothing in this
24Section shall prohibit the person performing high volume
25horizontal hydraulic fracturing operations from adjusting or

 

 

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1altering the contents of the fluid during the treatment process
2to respond to unexpected conditions, as long as the permittee
3or the person performing the high volume horizontal hydraulic
4fracturing operations notifies the Department by electronic
5mail within 24 hours of the departure from the initial
6treatment design and includes a brief explanation of the reason
7for the departure.
8    (b) No permittee shall use the services of another person
9to perform high volume horizontal hydraulic fracturing
10operations unless the person is in compliance with this
11Section.
12    (c) Any person performing high volume horizontal hydraulic
13fracturing operations within this State shall:
14        (1) be authorized to do business in this State; and
15        (2) maintain and disclose to the Department separate
16    and up-to-date master lists of:
17            (A) the base fluid to be used during any high
18        volume horizontal hydraulic fracturing operations
19        within this State;
20            (B) all hydraulic fracturing additives to be used
21        during any high volume horizontal hydraulic fracturing
22        operations within this State; and
23            (C) all chemicals and associated Chemical Abstract
24        Service numbers to be used in any high volume
25        horizontal hydraulic fracturing operations within this
26        State.

 

 

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1    (d) Persons performing high volume horizontal hydraulic
2fracturing operations are prohibited from using any base fluid,
3hydraulic fracturing additive, or chemical not listed on their
4master lists disclosed under paragraph (2) of subsection (c) of
5this Section.
6    (e) The Department shall assemble and post up-to-date
7copies of the master lists it receives under paragraph (2) of
8subsection (c) of this Section on its website in accordance
9with Section 110 of this Act.
10    (f) Where an applicant, permittee, or the person performing
11high volume horizontal hydraulic fracturing operations
12furnishes chemical disclosure information to the Department
13under this Section, Section 35, or Section 75 of this Act under
14a claim of trade secret, the applicant, permitee, or person
15performing high volume horizontal hydraulic fracturing
16operations shall submit redacted and un-redacted copies of the
17documents containing the information to the Department and the
18Department shall use the redacted copies when posting materials
19on its website.
20    (g) Upon submission or within 5 calendar days of submission
21of chemical disclosure information to the Department under this
22Section, Section 35, or Section 75 of this Act under a claim of
23trade secret, the person that claimed trade secret protection
24shall provide a justification of the claim containing the
25following: a detailed description of the procedures used by the
26person to safeguard the information from becoming available to

 

 

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1persons other than those selected by the person to have access
2to the information for limited purposes; a detailed statement
3identifying the persons or class of persons to whom the
4information has been disclosed; a certification that the person
5has no knowledge that the information has ever been published
6or disseminated or has otherwise become a matter of general
7public knowledge; a detailed discussion of why the person
8believes the information to be of competitive value; and any
9other information that shall support the claim.
10    (h) Chemical disclosure information furnished under this
11Section, Section 35, or Section 75 of this Act under a claim of
12trade secret shall be protected from disclosure as a trade
13secret if the Department determines that the statement of
14justification demonstrates that:
15        (1) the information has not been published,
16    disseminated, or otherwise become a matter of general
17    public knowledge; and
18        (2) the information has competitive value.
19    There is a rebuttable presumption that the information has
20not been published, disseminated, or otherwise become a matter
21of general public knowledge if the person has taken reasonable
22measures to prevent the information from becoming available to
23persons other than those selected by the person to have access
24to the information for limited purposes and the statement of
25justification contains a certification that the person has no
26knowledge that the information has ever been published,

 

 

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1disseminated, or otherwise become a matter of general public
2knowledge.
3    (i) Denial of a trade secret request under this Section
4shall be appealable under the Administrative Review Law.
5    (j) A person whose request to inspect or copy a public
6record is denied, in whole or in part, because of a grant of
7trade secret protection may file a request for review with the
8Public Access Counselor under Section 9.5 of the Freedom of
9Information Act or for injunctive or declaratory relief under
10Section 11 of the Freedom of Information Act for the purpose of
11reviewing whether the Department properly determined that the
12trade secret protection should be granted.
13    (k) Except as otherwise provided in subsections (l) and (m)
14of this Section, the Department must maintain the
15confidentiality of chemical disclosure information furnished
16under this Section, Section 35, or Section 75 of this Act under
17a claim of trade secret, until the Department receives official
18notification of a final order by a reviewing body with proper
19jurisdiction that is not subject to further appeal rejecting a
20grant of trade secret protection for that information.
21    (l) The Department shall adopt rules for the provision of
22information furnished under a claim of trade secret to a health
23professional who states a need for the information and
24articulates why the information is needed. The health
25professional may share that information with other persons as
26may be professionally necessary, including, but not limited to,

 

 

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1the affected patient, other health professionals involved in
2the treatment of the affected patient, the affected patient's
3family members if the affected patient is unconscious, unable
4to make medical decisions, or is a minor, the Centers for
5Disease Control, and other government public health agencies.
6Except as otherwise provided in this Section, any recipient of
7the information shall not use the information for purposes
8other than the health needs asserted in the request and shall
9otherwise maintain the information as confidential.
10Information so disclosed to a health professional shall in no
11way be construed as publicly available. The holder of the trade
12secret may request a confidentiality agreement consistent with
13the requirements of this Section from all health professionals
14to whom the information is disclosed as soon as circumstances
15permit. The rules adopted by the Department shall also
16establish procedures for providing the information in both
17emergency and non-emergency situations.
18    (m) In the event of a release of hydraulic fracturing
19fluid, a hydraulic fracturing additive, or hydraulic
20fracturing flowback, and when necessary to protect public
21health or the environment, the Department may disclose
22information furnished under a claim of trade secret to the
23relevant county public health director or emergency manager,
24the Director of the Illinois Department of Public Health, the
25Director of the Illinois Department of Agriculture, and the
26Director of the Illinois Environmental Protection Agency upon

 

 

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1request by that individual. The Director of the Illinois
2Department of Public Health, and the Director of the Illinois
3Environmental Protection Agency, and the Director of the
4Illinois Department of Agriculture may disclose this
5information to staff members under the same terms and
6conditions as apply to the Director of Natural Resources.
7Except as otherwise provided in this Section, any recipient of
8the information shall not use the information for purposes
9other than to protect public health or the environment and
10shall otherwise maintain the information as confidential.
11Information disclosed to staff shall in no way be construed as
12publicly available. The holder of the trade secret information
13may request a confidentiality agreement consistent with the
14requirements of this Section from all persons to whom the
15information is disclosed as soon as circumstances permit.
 
16    Section 80. Water quality monitoring.
17    (a) Each application for a high volume horizontal hydraulic
18fracturing permit shall provide the Department with a work plan
19to ensure accurate and complete sampling and testing as
20required under this Section. The work plan shall ensure
21compliance with the requirements of this Section and include,
22at a minimum, the following:
23        (1) information identifying all water sources within
24    the range of testing under this Section;
25        (2) a sampling plan and protocol, including

 

 

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1    notification to the Department at least 7 calendar days
2    prior to sample collection;
3        (3) the name and contact information of an independent
4    third party under the supervision of a professional
5    engineer or professional geologist that shall be
6    designated to conduct sampling to establish a baseline as
7    provided for under subsection (b) of this Section;
8        (4) the name and contact information of an independent
9    third party under the supervision of a professional
10    engineer or professional geologist that shall be
11    designated to conduct sampling to establish compliance
12    with monitoring as provided within subsection (c) of this
13    Section;
14        (5) the name and contact information of an independent
15    testing laboratory, certified to perform the required
16    laboratory method, to conduct the analysis required under
17    subsections (b) and (c) of this Section;
18        (6) proof of access and the right to test within the
19    area for testing prescribed within subsection (b) of this
20    Section during the duration of high volume horizontal
21    hydraulic fracturing operations covered under the permit
22    application, and copies of any non-disclosure agreements
23    made under subsection (d) of this Section; and
24        (7) identification of practicable contingency
25    measures, including provision for alternative drinking
26    water supplies, which could be implemented in the event of

 

 

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1    pollution or diminution of a water source as provided for
2    in Section 83.
3    (b) Prior to conducting high volume horizontal hydraulic
4fracturing operations on a well, a permittee shall retain an
5independent third party, as required within paragraph (3) of
6subsection (a) of this Section, and shall conduct baseline
7water quality sampling of all water sources within 1,500 feet
8of the well site prior to any fracturing activities. The
9samples collected by the independent third party, under the
10supervision of a professional engineer or professional
11geologist, shall be analyzed by an independent testing
12laboratory in accordance with paragraph (4) of subsection (a)
13of this Section. Testing shall be done by collection of a
14minimum of 3 samples for each water source required to be
15tested under this Section. The permittee shall, within 7
16calendar days after receipt of results of tests conducted under
17this subsection, submit the results to the Department or to the
18owner of the water source under a non-disclosure agreement
19under subsection (d) of this Section. The Department shall post
20the results on its website within 7 calendar days after
21receipt. The results shall, at a minimum, include a detailed
22description of the sampling and testing conducted under this
23subsection, the chain of custody of the samples, and quality
24control of the testing.
25    (c) After baseline tests are conducted under subsection (b)
26of this Section and following issuance of a permit by the

 

 

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1Department, the permittee shall have all water sources
2subjected to sampling under subsection (b) of this Section. All
3water sources shall be sampled and tested in the same manner 6
4months, 18 months, and 30 months after the high volume
5horizontal hydraulic fracturing operations have been
6completed. Sampling of a water source under this subsection is
7not required if the water source was sampled under this
8subsection or subsection (b) within the previous month. The
9permittee shall notify the Department at least 7 calendar days
10prior to taking the sample. The permittee shall, within 7
11calendar days after receipt of results of tests conducted under
12this subsection (c), submit the results to the Department or to
13the owner of the water source pursuant to a non-disclosure
14agreement under subsection (d) of this Section. The results
15shall include, at a minimum, a detailed description of the
16sampling and testing conducted under this subsection, the chain
17of custody of the samples, and quality control of the testing.
18    (d) Sampling of private water wells or ponds wholly
19contained within private property shall not be required where
20the owner of the private property declines, expressly and in
21writing, to provide access or permission for sampling. The
22owners of private property may condition access or permission
23for sampling of a private water well or pond wholly within the
24property or a portion of any perennial stream or river that
25flows through the property under a non-disclosure agreement,
26which must include the following terms and conditions:

 

 

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1        (1) the permittee shall provide the results of the
2    water quality testing to the property owners;
3        (2) the permittee shall retain the results of the water
4    quality testing until at least one year after completion of
5    all monitoring under this Section for review by the
6    Department upon request;
7        (3) the permittee shall not file with the Department
8    the results of the water quality testing, except under
9    paragraph (4) of subsection (d) of this Section; and
10        (4) the permittee shall notify the Department within 7
11    calendar days of its receipt of the water quality data
12    where any testing under subsection (c) of this Section
13    indicates that concentrations exceed the standards or
14    criteria referenced in the definition of pollution or
15    diminution under Section 5 of this Act.
16    (e) Each set of samples collected under subsections (b) and
17(c) of this Section shall include analyses for:
18        (1) pH;
19        (2) total dissolved solids, dissolved methane,
20    dissolved propane, dissolved ethane, alkalinity, and
21    specific conductance;
22        (3) chloride, sulfate, arsenic, barium, calcium,
23    chromium, iron, magnesium, selenium, cadmium, lead,
24    manganese, mercury, and silver;
25        (4) BTEX; and
26        (5) gross alpha and beta particles to determine the

 

 

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1    presence of any naturally occurring radioactive materials.
2    Sampling shall, at a minimum, be consistent with the work
3plan and allow for a determination of whether any hydraulic
4fracturing additive or other contaminant has caused pollution
5or diminution for purposes of Sections 83 and 85 of this Act.
 
6    Section 83. Order authority.
7    (a) Any person who has reason to believe they have incurred
8pollution or diminution of a water source as a result of a high
9volume horizontal hydraulic fracturing treatment of a well
10shall immediately notify the Department and request that an
11investigation be conducted.
12    (b) Within 30 calendar days after notification, the
13Department shall initiate the investigation of the claim and
14make a reasonable effort to reach a determination within 180
15calendar days after notification. The Department may contact
16the Agency to seek the Agency's assistance in water quality
17sampling. The Agency may seek cost recovery under subsection
18(e) of Section 87 of this Act and recover all costs for samples
19taken for the investigation under this Section.
20    (c) Any person conducting or who has conducted high volume
21horizontal hydraulic fracturing operations shall supply any
22information requested by the Department to assist the
23Department. The Department shall give due consideration to any
24information submitted during the course of the investigation.
25    (d) If sampling results or other information obtained as

 

 

HB2615- 76 -LRB098 10864 MGM 41398 b

1part of the investigation or the results of tests conducted
2under subsection (c) of Section 80 of this Act indicate that
3concentrations exceed the standards or criteria referenced by
4pollution or diminution under Section 5 of this Act, the
5Department shall issue an order to the permittee as necessary
6to require permanent or temporary replacement of a water
7source. In addition to any other penalty available under the
8law and consistent with the Department's order, the permittee
9shall restore or replace the affected supply with an
10alternative source of water adequate in quantity and quality
11for the purposes served by the water source. The quality of a
12restored or replaced water source shall meet or exceed the
13quality of the original water source based upon the results of
14the baseline test results under subsection (b) of Section 80
15for that water source, or other available information. The
16Department may require the permittee to take immediate action,
17including but not limited to, repair, replacement, alteration,
18or prohibition of operation of equipment permitted by the
19Department. The Department may issue conditions within any
20order to protect the public health or welfare or the
21environment.
22    (e) Within 15 calendar days after a determination has been
23made regarding the pollution or diminution, the Department
24shall provide notice of its findings and the orders, if any, to
25all persons that use the water source for domestic,
26agricultural, industrial, or any other legitimate beneficial

 

 

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1uses.
2    (f) Upon issuance of an Order or a finding of pollution or
3diminution under subsection (d) of this Section, the Department
4shall contact the Agency and forward all information from the
5investigation to the Agency. The Agency shall investigate the
6potential for violations as designated within Section 87 of
7this Act.
8    (g) Reports of potential cases of water pollution that may
9be associated with high volume horizontal hydraulic fracturing
10operations may be submitted electronically. The Department
11shall establish a format for these reports to be submitted
12through the website developed under Section 110 of this Act.
13The Department shall electronically provide these reports to
14the Agency.
15    (h) The Department shall publish, on its website, lists of
16confirmed cases of pollution or diminution that result from
17high volume horizontal hydraulic fracturing operations. This
18information shall be searchable by county.
19    (i) Nothing in this Section shall prevent the Department
20from issuing a cessation order under Section 8a of the Illinois
21Oil and Gas Act.
 
22    Section 85. Presumption of pollution or diminution.
23    (a) This Section establishes a rebuttable presumption for
24the purposes of evidence and liability under State law
25regarding claims of pollution or diminution of a water source

 

 

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1and for use regarding the investigation and order authority
2under Section 83.
3    (b) Unless rebutted by a defense established in subsection
4(c) of this Section, it shall be presumed that any person
5conducting or who has conducted high volume horizontal
6hydraulic fracturing operations shall be liable for pollution
7or diminution of a water supply if:
8        (1) the water source is within 1,500 feet of the well
9    site;
10        (2) water quality data showed no pollution or
11    diminution prior to the start of high volume horizontal
12    hydraulic fracturing operations; and
13        (3) the pollution or diminution occurred during high
14    volume horizontal hydraulic fracturing operations or no
15    more than 30 months after the completion of the high volume
16    horizontal hydraulic fracturing operations.
17    (c) To rebut the presumption established under this
18Section, a person presumed responsible must affirmatively
19prove by clear and convincing evidence any of the following:
20        (1) the water source is not within 1,500 feet of the
21    well site;
22        (2) the pollution or diminution occurred prior to high
23    volume horizontal hydraulic fracturing operations or more
24    than 30 months after the completion of the high volume
25    horizontal hydraulic fracturing operations; or
26        (3) the pollution or diminution occurred as the result

 

 

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1    of an identifiable cause other than the high volume
2    horizontal hydraulic fracturing operations.
 
3    Section 87. Water quality investigation and enforcement.
4    (a) No person shall cause or allow high volume horizontal
5hydraulic fracturing operations permitted under this Act to
6violate Section 12 of the Illinois Environmental Protection Act
7or surface water or groundwater regulations adopted under the
8Illinois Environmental Protection Act.
9    (b) The Agency shall have the duty to investigate
10complaints that activities under this Act have caused a
11violation of Section 12 of the Illinois Environmental
12Protection Act or surface or groundwater rules adopted under
13the Illinois Environmental Protection Act. Any action taken by
14the Agency in enforcing these violations shall be taken under
15and consistent with the Illinois Environmental Protection Act,
16including but not limited to, the Agency's authority to seek a
17civil or criminal cause of action under that Act. The test
18results under subsections (b) and (c) of Section 80 of this Act
19may be considered by the Agency during an investigation under
20this Section.
21    (c) A person who has reason to believe they have incurred
22contamination of a water source as a result of high volume
23horizontal hydraulic fracturing may notify the Agency and
24request an investigation be conducted. The Agency shall forward
25this request to the Department for consideration of an

 

 

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1investigation under Section 83 of this Act. If the Agency is
2provided with notice under subsection (f) of Section 83, the
3Agency shall conduct an investigation to determine whether
4pollution or diminution is continuing to occur at the location
5subject to the order, as well as locations identified by the
6Department or at any other water source within 1,500 feet of
7the well site. Any person conducting or who has conducted high
8volume horizontal hydraulic fracturing operations shall supply
9any information requested to assist the Agency in its
10investigation. The Agency shall give due consideration to any
11information submitted during the course of the investigation.
12    (d) Pollution or diminution is a violation of this Act and
13may be pursued by the Department subject to the procedures and
14remedies under Sections 100 and 105 of this Act.
 
15    Section 95. Plugging; restoration.
16    (a) The permittee shall perform and complete plugging of
17the well and restoration of the well site in accordance with
18the Illinois Oil and Gas Act and any and all rules adopted
19thereunder. The permittee shall bear all costs related to
20plugging of the well and reclamation of the well site. If the
21permittee fails to plug the well in accordance with this
22Section, the owner of the well shall be responsible for
23complying with this Section.
24    (b) Prior to conducting high volume horizontal hydraulic
25fracturing operations at a well site, the permittee shall cause

 

 

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1to be plugged all previously unplugged well bores within 750
2feet of any part of the horizontal well bore that penetrated
3within 400 vertical feet of the formation that will be
4stimulated as part of the high volume horizontal hydraulic
5fracturing operations.
6    (c) For well sites where high volume horizontal hydraulic
7fracturing operations were permitted to occur, the operator
8shall restore any lands used by the operator other than the
9well site and production facility to a condition as closely
10approximating the pre-drilling conditions that existed before
11the land was disturbed for any stage of site preparation
12activities, drilling, and high volume horizontal hydraulic
13fracturing operations. Restoration shall be commenced within 6
14months of completion of the well site and completed within 12
15months. Restoration shall include, but is not limited to,
16repair of tile lines, repair of fences and barriers, mitigation
17of soil compaction and rutting, application of fertilizer or
18lime to restore the fertility of disturbed soil, and repair of
19soil conservation practices such as terraces and grassed
20waterways.
21    (d) Unless contractually agreed to the contrary by the
22permittee and surface owner, the permittee shall restore the
23well site and production facility in accordance with the
24applicable restoration requirements in subsection (c) of this
25Section and shall remove all equipment and materials involved
26in site preparation, drilling, and high volume horizontal

 

 

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1hydraulic fracturing operations, including tank batteries,
2rock and concrete pads, oil field debris, injection and flow
3lines at or above the surface, electric power lines and poles
4extending on or above the surface, tanks, fluids, pipes at or
5above the surface, secondary containment measures, rock or
6concrete bases, drilling equipment and supplies, and any and
7all other equipment, facilities, or materials used during any
8stage of site preparation work, drilling, or hydraulic
9fracturing operations at the well site. Work on the removal of
10equipment and materials at the well site shall begin within 6
11months after plugging the final well on the well site and be
12completed no later than 12 months after the last producing well
13on the well site has been plugged. Roads installed as part of
14the oil and gas operation may be left in place if provided in
15the lease or pursuant to agreement with the surface owner, as
16applicable.
 
17    Section 97. Seismicity.
18    (a) For purposes of this Section, "induced seismicity"
19means an earthquake event that is felt, recorded by the
20national seismic network, and attributable to a Class II
21injection well used for disposal of flow-back and produced
22fluid from hydraulic fracturing operations.
23    (b) The Department shall adopt rules, in consultation with
24the Illinois State Geological Survey, establishing a protocol
25for controlling operational activity of Class II injection

 

 

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1wells in an instance of induced seismicity.
2    (c) The rules adopted by the Department under this Section
3shall employ a "traffic light" control system allowing for low
4levels of seismicity while including additional monitoring and
5mitigation requirements when seismic events are of sufficient
6intensity to result in a concern for public health and safety.
7    (d) The additional mitigation requirements referenced in
8subsection (c) of this Section shall provide for either the
9scaling back of injection operations with monitoring for
10establishment of a potentially safe operation level or the
11immediate cessation of injection operations.
 
12    Section 99. Department report. Two years after the
13effective date of the first high volume horizontal hydraulic
14fracturing permit issued by the Department, and every 3 years
15thereafter, the Department shall prepare a report that examines
16the following:
17        (1) the number of high volume horizontal hydraulic
18    fracturing permits issued by the Department, on an annual
19    basis;
20        (2) a map showing the locations in this State where
21    high volume horizontal hydraulic fracturing operations
22    have been permitted by the Department;
23        (3) identification of the latest scientific research,
24    best practices, and technological improvements related to
25    high volume horizontal hydraulic fracturing operations and

 

 

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1    methods to protect the environment and public health;
2        (4) confirmed environmental impacts in this State due
3    to high volume horizontal hydraulic fracturing operations,
4    including, but not limited to, any reportable release of
5    hydraulic fracturing flowback, hydraulic fracturing fluid,
6    and hydraulic fracturing additive;
7        (5) confirmed public health impacts in this State due
8    to high volume horizontal hydraulic fracturing operations;
9        (6) a comparison of the revenues generated under
10    subsection (e) of Section 35 of this Act to the
11    Department's costs associated with implementing and
12    administering provisions of this Act;
13        (7) a comparison of the revenues generated under
14    subsection (e) of Section 87 of this Act to the Agency's
15    costs associated with implementing and administering
16    provisions of this Act;
17        (8) a description of any modifications to existing
18    programs, practices, or rules related to high volume
19    horizontal hydraulic fracturing operations made by the
20    Department;
21        (9) any problems or issues the Department identifies as
22    it implements and administers the provisions of this Act;
23        (10) any recommendations for legislative action by the
24    General Assembly to address the findings in the report; and
25        (11) any other information the Department deems
26    relevant regarding its specific experiences implementing

 

 

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1    and administering the provisions of this Act and,
2    generally, high volume horizontal hydraulic fracturing
3    operations.
4    The first report shall also examine any studies issued by
5the United States Environmental Protection Agency regarding
6high volume horizontal hydraulic fracturing operations. The
7report required by this Section shall be provided to the
8General Assembly and Governor.
 
9    Section 100. Criminal offenses; penalties.
10    (a) Except as otherwise provided in this Section, it shall
11be a Class A misdemeanor to knowingly violate this Act, its
12rules, or any permit or term or condition thereof, or knowingly
13to submit any false information under this Act or regulations
14adopted thereunder, or under any permit or term or condition
15thereof. A person convicted or sentenced under this subsection
16(a) shall be subject to a fine of not to exceed $10,000 for
17each day of violation.
18    (b) It is unlawful for a person knowingly to violate:
19        (1) subsection (c) of Section 25 of this Act;
20        (2) subsection (d) of Section 25 of this Act;
21        (3) subsection (a) of Section 30 of this Act;
22        (4) paragraph (9) of subsection (c) of Section 75 of
23    this Act; or
24        (5) subsection (a) of Section 87 of this Act.
25    A person convicted or sentenced for any knowing violation

 

 

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1of the requirements or prohibitions listed in this subsection
2(b) commits a Class 4 felony, and in addition to any other
3penalty prescribed by law is subject to a fine not to exceed
4$25,000 for each day of violation. A person who commits a
5second or subsequent knowing violation of the requirements or
6prohibitions listed in this subsection (b) commits a Class 3
7felony and, in addition to any other penalties provided by law,
8is subject to a fine not to exceed $50,000 for each day of
9violation.
10    (c) Any person who knowingly makes a false, fictitious, or
11fraudulent material statement, orally or in writing, to the
12Department or Agency as required by this Act, its rules, or any
13permit, term, or condition of a permit, commits a Class 4
14felony, and each false, fictitious, or fraudulent statement or
15writing shall be considered a separate violation. In addition
16to any other penalty prescribed by law, persons in violation of
17this subsection (c) is subject to a fine of not to exceed
18$25,000 for each day of violation. A person who commits a
19second or subsequent knowing violation of this subsection (c)
20commits a Class 3 felony and, in addition to any other
21penalties provided by law, is subject to a fine not to exceed
22$50,000 for each day of violation.
23    (d) Any criminal action provided for under this Section
24shall be brought by the State's Attorney of the county in which
25the violation occurred or by the Attorney General and shall be
26conducted in accordance with the applicable provision of the

 

 

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1Code of Criminal Procedure of 1963. For criminal conduct in
2this Section, the period for commencing prosecution shall not
3begin to run until the offense is discovered by or reported to
4a State or local agency having authority to investigate
5violations of this Act.
 
6    Section 101. Violations; civil penalties and injunctions.
7    (a) Except as otherwise provided in this Section, any
8person who violates any provision of this Act or any rule or
9order adopted under this Act or any permit issued under this
10Act shall be liable for a civil penalty not to exceed $50,000
11for the violation and an additional civil penalty not to exceed
12$10,000 for each day during which the violation continues.
13    (b) Any person who violates any requirements or
14prohibitions of provisions listed in this subsection (b) is
15subject to a civil penalty not to exceed $100,000 for the
16violation and an additional civil penalty not to exceed $20,000
17for each day during which the violation continues. The
18following are violations are subject to the penalties of this
19subsection (b):
20        (1) subsection (c) of Section 25 of this Act;
21        (2) subsection (d) of Section 25 of this Act;
22        (3) subsection (a) of Section 30 of this Act;
23        (4) paragraph (9) of subsection (c) of Section 75 of
24    this Act; or
25        (5) subsection (a) of Section 87 of this Act.

 

 

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1    (c) The penalty shall be recovered by a civil action before
2the circuit court of the county in which the well site is
3located or in the circuit court of Sangamon County. Venue shall
4be considered proper in either court. These penalties may, upon
5the order of a court of competent jurisdiction, be made payable
6to the Environmental Protection Trust Fund, to be used in
7accordance with the provisions of the Environmental Protection
8Trust Fund Act.
9    (d) The State's Attorney of the county in which the
10violation occurred, or the Attorney General, may, at the
11request of the Department or on his or her own motion,
12institute a civil action for an injunction, prohibitory or
13mandatory, to restrain violations of this Act, any rule adopted
14under this Act, the permit or term or condition of the permit,
15or to require other actions as may be necessary to address
16violations of this Act, any rule adopted under this Act, the
17permit or term or condition of the permit.
18    (e) The State's Attorney of the county in which the
19violation occurred, or the Attorney General, shall bring
20actions under this Section in the name of the People of the
21State of Illinois. Without limiting any other authority that
22may exist for the awarding of attorney's fees and costs, a
23court of competent jurisdiction may award costs and reasonable
24attorney's fees, including the reasonable costs of expert
25witnesses and consultants, to the State's Attorney or the
26Attorney General in a case where he or she has prevailed

 

 

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1against a person who has committed a knowing or repeated
2violation of this Act, any rule adopted under this Act, or the
3permit or term or condition of the permit.
4    (f) All final orders imposing civil penalties under this
5Section shall prescribe the time for payment of those
6penalties. If any penalty is not paid within the time
7prescribed, interest on penalty at the rate set forth in
8subsection (a) of Section 1003 of the Illinois Income Tax Act,
9shall be paid for the period from the date payment is due until
10the date payment is received. However, if the time for payment
11is stayed during the pendency of an appeal, interest shall not
12accrue during stay.
 
13    Section 102. Other relief.
14    (a) Any person having an interest that is or may be
15adversely affected may commence a civil action on his or her
16own behalf to compel compliance with this Act against any
17governmental instrumentality or agency which is alleged to be
18in violation of the provisions of this Act or of any rule,
19order, or permit issued under this Act, or against any other
20person who is alleged to be in violation of this Act or of any
21rule, order, or permit issued under this Act. No action may be
22commenced under this subsection (a): (i) prior to 60 days after
23the plaintiff has given notice in writing of the alleged
24violation to the Department and to any alleged violator or (ii)
25if the State has commenced and is diligently prosecuting a

 

 

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1civil action to require compliance with the provisions of this
2Act, or any rule, order, or permit issued under this Act.
3    (b) Any person having an interest that is or may be
4adversely affected may commence a civil action against the
5Department on his or her own behalf to compel compliance with
6this Act where there is alleged a failure of the Department to
7perform any act or duty under this Act that is not
8discretionary with the Department. No action may be commenced
9under this subsection (b) prior to 60 days after the plaintiff
10has given notice in writing of the action to the Department,
11except that such action may be brought immediately after the
12notification in the case where the violation or order
13complained of constitutes an imminent threat to the health or
14safety of the plaintiff or would immediately affect a legal
15interest of the plaintiff.
16    (c) The court, in issuing any final order in any action
17brought under this Section, may award costs of litigation
18(including attorney and expert witness fees) to any party, on
19the basis of the importance of the proceeding and the
20participation of the parties to the efficient and effective
21enforcement of this Act. The court may, if a temporary
22restraining order or preliminary injunction is sought, require
23the filing of a bond or equivalent security in accordance with
24Part 1 of Article XI of the Code of Civil Procedure.
25    (d) Any person who is injured in his or her person or
26property through the violation by any operator of any rule,

 

 

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1order, or permit issued under this Act may bring an action for
2damages (including reasonable attorney and expert witness
3fees). Nothing in this subsection (d) shall affect any of the
4rights established by or limits imposed under the Workers'
5Compensation Act.
6    (e) Any action brought under this Section may be brought
7only in the county in which the high volume horizontal
8hydraulic fracturing operation complained of is located.
9    (f) In any action under this Section, the Department shall
10have an unconditional right to intervene.
11    (g) No existing civil or criminal remedy for any wrongful
12action shall be excluded or impaired by this Act.
13    (h) Nothing in this Section shall restrict any right that
14any person (or class of persons) may have under any statute or
15common law to seek enforcement of any of the provisions of this
16Act and the rules adopted under this Act, or to seek any other
17relief (and including relief against the United States or the
18Department).
 
19    Section 105. Violations, complaints, and notice; website.
20    The Department shall maintain a detailed database that is
21readily accessible to the public on the Department's website.
22The database shall show each violation found by the Department
23regarding high volume horizontal hydraulic fracturing
24operations and the associated well owners, operators, and
25subcontractors. When the Department determines that any person

 

 

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1has violated this Act, the Department shall provide notice by
2U.S. Postal Service certified mail, return receipt requested,
3of the Department's determination to all persons required to
4receive specific public notice under Section 40 of this Act
5within 7 calendar days after the determination. The Department
6shall also post the notice on the Department's website. The
7notice shall include a detailed, plain language description of
8the violation and a detailed, plain language description of all
9known risks to public health, life, property, aquatic life, and
10wildlife resulting from the violation.
 
11    Section 110. Public information; website.
12    (a) All information submitted to the Department under this
13Act is deemed public information, except information deemed to
14constitute a trade secret under Section 77 of this Act and
15private information and personal information as defined in the
16Freedom of Information Act.
17    (b) To provide the public and concerned citizens with a
18centralized repository of information, the Department shall
19create and maintain a comprehensive website dedicated to
20providing information concerning high volume horizontal
21hydraulic fracturing operations. The website shall contain,
22assemble, and link the documents and information required by
23this Act to be posted on the Department's or other agencies'
24websites. The Department shall also create and maintain an
25online searchable database that provides information related

 

 

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1to high volume horizontal hydraulic fracturing operations on
2wells that, at a minimum, include, for each well it permits,
3the identity of its operators, its waste disposal, its chemical
4disclosure information, and any complaints or violations under
5this Act. The website created under this Section shall allow
6users to search for completion reports by well name and
7location, dates of fracturing and drilling operations,
8operator, and by chemical additives.
 
9    Section 120. Applicable federal, State, and local laws.
10Compliance with this Act does not relieve responsibility for
11compliance with the Illinois Oil and Gas Act, the Illinois
12Environmental Protection Act, and other applicable federal,
13State, and local laws.
 
14    Section 125. Administrative review. All final
15administrative decisions, including issuance or denial of a
16permit, made by the Department under this Act are subject to
17judicial review under the Administrative Review Law and its
18rules.
 
19    Section 130. Rules. The Department shall have the
20authority to adopt rules as may be necessary to accomplish the
21purposes of this Act. Any and all rules adopted under this Act
22by the Department are not subject to the review, consultation,
23or advisement of the Oil and Gas Board.
 

 

 

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1    Section 135. The Mines and Minerals Regulatory Fund. The
2Mines and Minerals Regulatory Fund is created as a special fund
3in the State treasury. All moneys required by this Act to be
4deposited into the Fund shall be used by the Department to
5administer and enforce this Act and otherwise support the
6operations and programs of the Office of Mines and Minerals.
 
7    Section 140. Severability. The provisions of this Act are
8severable under Section 1.31 of the Statute on Statutes.
 
9    Section 150. The State Finance Act is amended by adding
10Section 5.826 as follows:
 
11    (30 ILCS 105/5.826 new)
12    Sec. 5.826. The Mines and Minerals Regulatory Fund.
 
13    Section 999. Effective date. This Act takes effect upon
14becoming law.