Illinois General Assembly - Full Text of Public Act 099-0139
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Public Act 099-0139


 

Public Act 0139 99TH GENERAL ASSEMBLY

  
  
  

 


 
Public Act 099-0139
 
SB1458 EnrolledLRB099 10517 SXM 30744 b

    AN ACT concerning Finance.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    Section 5. The Department of Natural Resources Act is
amended by changing Section 10-5 as follows:
 
    (20 ILCS 801/10-5)
    Sec. 10-5. Office of Mines and Minerals.
    (a) The Department of Natural Resources shall have within
it an Office of Mines and Minerals, which shall be responsible
for the functions previously vested in the Department of Mines
and Minerals and the Abandoned Mined Lands Reclamation Council
and such other related functions and responsibilities as may be
provided by law.
    (b) The Office of Mines and Minerals shall have a Director
and a Manager.
    The Director of the Office of Mines and Minerals shall be a
person thoroughly conversant with the theory and practice of
coal mining but who is not identified with either coal
operators or coal miners. The Director of the Office of Mines
and Minerals must hold a certificate of competency as a mine
examiner issued by the Illinois Mining Board.
    The Manager of the Office of Mines and Minerals shall be a
person who is thoroughly conversant with the theory and
practice of coal mining in the State of Illinois.
    (c) Notwithstanding any provision of this Act or any other
law to the contrary, the Department of Natural Resources may
have within it an Office of Oil and Gas Resource Management,
which may be responsible for the functions previously vested in
the Department of Mines and Minerals relating to oil and gas
resources, such other related functions and responsibilities
as may be provided by law, and other functions and
responsibilities at the discretion of the Department of Natural
Resources.
(Source: P.A. 89-50, eff. 7-1-95; 89-445, eff. 2-7-96.)
 
    Section 10. The State Finance Act is amended by changing
Section 5.832 as follows:
 
    (30 ILCS 105/5.832)
    Sec. 5.832. The Oil and Gas Resource Management Mines and
Minerals Regulatory Fund.
(Source: P.A. 98-22, eff. 6-17-13; 98-756, eff. 7-16-14.)
 
    Section 15. The Hydraulic Fracturing Regulatory Act is
amended by changing Sections 1-35, 1-65 and 1-135 as follows:
 
    (225 ILCS 732/1-35)
    Sec. 1-35. High volume horizontal hydraulic fracturing
permit application.
    (a) Every applicant for a permit under this Act shall first
register with the Department at least 30 days before applying
for a permit. The Department shall make available a
registration form within 90 days after the effective date of
this Act. The registration form shall require the following
information:
        (1) the name and address of the registrant and any
    parent, subsidiary, or affiliate thereof;
        (2) disclosure of all findings of a serious violation
    or an equivalent violation under federal or state laws or
    regulations in the development or operation of an oil or
    gas exploration or production site via hydraulic
    fracturing by the applicant or any parent, subsidiary, or
    affiliate thereof within the previous 5 years; and
        (3) proof of insurance to cover injuries, damages, or
    loss related to pollution or diminution in the amount of at
    least $5,000,000, from an insurance carrier authorized,
    licensed, or permitted to do this insurance business in
    this State that holds at least an A- rating by A.M. Best &
    Co. or any comparable rating service.
    A registrant must notify the Department of any change in
the information identified in paragraphs (1), (2), or (3) of
this subsection (a) at least annually or upon request of the
Department.
    (b) Every applicant for a permit under this Act must submit
the following information to the Department on an application
form provided by the Department:
        (1) the name and address of the applicant and any
    parent, subsidiary, or affiliate thereof;
        (2) the proposed well name and address and legal
    description of the well site and its unit area;
        (3) a statement whether the proposed location of the
    well site is in compliance with the requirements of Section
    1-25 of this Act and a plat, which shows the proposed
    surface location of the well site, providing the distance
    in feet, from the surface location of the well site to the
    features described in subsection (a) of Section 1-25 of
    this Act;
        (4) a detailed description of the proposed well to be
    used for the high volume horizontal hydraulic fracturing
    operations including, but not limited to, the following
    information:
            (A) the approximate total depth to which the well
        is to be drilled or deepened;
            (B) the proposed angle and direction of the well;
            (C) the actual depth or the approximate depth at
        which the well to be drilled deviates from vertical;
            (D) the angle and direction of any nonvertical
        portion of the wellbore until the well reaches its
        total target depth or its actual final depth; and
            (E) the estimated length and direction of the
        proposed horizontal lateral or wellbore;
        (5) the estimated depth and elevation, according to the
    most recent publication of the Illinois State Geological
    Survey of Groundwater for the location of the well, of the
    lowest potential fresh water along the entire length of the
    proposed wellbore;
        (6) a detailed description of the proposed high volume
    horizontal hydraulic fracturing operations, including, but
    not limited to, the following:
            (A) the formation affected by the high volume
        horizontal hydraulic fracturing operations, including,
        but not limited to, geologic name and geologic
        description of the formation that will be stimulated by
        the operation;
            (B) the anticipated surface treating pressure
        range;
            (C) the maximum anticipated injection treating
        pressure;
            (D) the estimated or calculated fracture pressure
        of the producing and confining zones; and
            (E) the planned depth of all proposed perforations
        or depth to the top of the open hole section;
        (7) a plat showing all known previous wellbores within
    750 feet of any part of the horizontal wellbore that
    penetrated within 400 vertical feet of the formation that
    will be stimulated as part of the high volume horizontal
    hydraulic fracturing operations;
        (8) unless the applicant documents why the information
    is not available at the time the application is submitted,
    a chemical disclosure report identifying each chemical and
    proppant anticipated to be used in hydraulic fracturing
    fluid for each stage of the hydraulic fracturing operations
    including the following:
            (A) the total volume of water anticipated to be
        used in the hydraulic fracturing treatment of the well
        or the type and total volume of the base fluid
        anticipated to be used in the hydraulic fracturing
        treatment, if something other than water;
            (B) each hydraulic fracturing additive anticipated
        to be used in the hydraulic fracturing fluid, including
        the trade name, vendor, a brief descriptor of the
        intended use or function of each hydraulic fracturing
        additive, and the Material Safety Data Sheet (MSDS), if
        applicable;
            (C) each chemical anticipated to be intentionally
        added to the base fluid, including for each chemical,
        the Chemical Abstracts Service number, if applicable;
        and
            (D) the anticipated concentration in the base
        fluid, in percent by mass, of each chemical to be
        intentionally added to the base fluid;
        (9) a certification of compliance with the Water Use
    Act of 1983 and applicable regional water supply plans;
        (10) a fresh water withdrawal and management plan that
    shall include the following information:
            (A) the source of the water, such as surface or
        groundwater, anticipated to be used for water
        withdrawals, and the anticipated withdrawal location;
            (B) the anticipated volume and rate of each water
        withdrawal from each withdrawal location;
            (C) the anticipated months when water withdrawals
        shall be made from each withdrawal location;
            (D) the methods to be used to minimize water
        withdrawals as much as feasible; and
            (E) the methods to be used for surface water
        withdrawals to minimize adverse impact to aquatic
        life.
        Where a surface water source is wholly contained within
    a single property, and the owner of the property expressly
    agrees in writing to its use for water withdrawals, the
    applicant is not required to include this surface water
    source in the fresh water withdrawal and management plan;
        (11) a plan for the handling, storage, transportation,
    and disposal or reuse of hydraulic fracturing fluids and
    hydraulic fracturing flowback. The plan shall identify the
    specific Class II injection well or wells that will be used
    to dispose of the hydraulic fracturing flowback. The plan
    shall describe the capacity of the tanks to be used for the
    capture and storage of flowback and of the lined reserve
    pit to be used, if necessary, to temporarily store any
    flowback in excess of the capacity of the tanks.
    Identification of the Class II injection well or wells
    shall be by name, identification number, and specific
    location and shall include the date of the most recent
    mechanical integrity test for each Class II injection well;
        (12) a well site safety plan to address proper safety
    measures to be employed during high volume horizontal
    hydraulic fracturing operations for the protection of
    persons on the site as well as the general public. Within
    15 calendar days after submitting the permit application to
    the Department, the applicant must provide a copy of the
    plan to the county or counties in which hydraulic
    fracturing operations will occur. Within 5 calendar days of
    its receipt, the Department shall provide a copy of the
    well site safety plan to the Office of the State Fire
    Marshal;
        (13) a containment plan describing the containment
    practices and equipment to be used and the area of the well
    site where containment systems will be employed, and within
    5 calendar days of its receipt, the Department shall
    provide a copy of the containment plan to the Office of the
    State Fire Marshal;
        (14) a casing and cementing plan that describes the
    casing and cementing practices to be employed, including
    the size of each string of pipe, the starting point, and
    depth to which each string is to be set and the extent to
    which each string is to be cemented;
        (15) a traffic management plan that identifies the
    anticipated roads, streets, and highways that will be used
    for access to and egress from the well site. The traffic
    management plan will include a point of contact to discuss
    issues related to traffic management. Within 15 calendar
    days after submitting the permit application to the
    Department, the applicant must provide a copy of the
    traffic management plan to the county or counties in which
    the well site is located, and within 5 calendar days of its
    receipt, the Department shall provide a copy of the traffic
    management plan to the Office of the State Fire Marshal;
        (16) the names and addresses of all owners of any real
    property within 1,500 feet of the proposed well site, as
    disclosed by the records in the office of the recorder of
    the county or counties;
        (17) drafts of the specific public notice and general
    public notice as required by Section 1-40 of this Act;
        (18) a statement that the well site at which the high
    volume horizontal hydraulic fracturing operation will be
    conducted will be restored in compliance with Section
    240.1181 of Title 62 of the Illinois Administrative Code
    and Section 1-95 of this Act;
        (19) proof of insurance to cover injuries, damages, or
    loss related to pollution in the amount of at least
    $5,000,000; and
        (20) any other relevant information which the
    Department may, by rule, require.
    (c) Where an application is made to conduct high volume
horizontal fracturing operations at a well site located within
the limits of any city, village, or incorporated town, the
application shall state the name of the city, village, or
incorporated town and be accompanied with a certified copy of
the official consent for the hydraulic fracturing operations to
occur from the municipal authorities where the well site is
proposed to be located. No permit shall be issued unless
consent is secured and filed with the permit application. In
the event that an amended location is selected, the original
permit shall not be valid unless a new certified consent is
filed for the amended location.
    (d) The hydraulic fracturing permit application shall be
accompanied by a bond as required by subsection (a) of Section
1-65 of this Act.
    (e) Each application for a permit under this Act shall
include payment of a non-refundable fee of $13,500. Of this
fee, $11,000 shall be deposited into the Oil and Gas Resource
Management Mines and Minerals Regulatory Fund for the
Department to use to administer and enforce this Act and
otherwise support the operations and programs of the Office of
Oil and Gas Resource Management Office of Mines and Minerals.
The remaining $2,500 shall be deposited into the Illinois Clean
Water Fund for the Agency to use to carry out its functions
under this Act. The Department shall not initiate its review of
the permit application until the applicable fee under this
subsection (e) has been submitted to and received by the
Department.
    (f) Each application submitted under this Act shall be
signed, under the penalty of perjury, by the applicant or the
applicant's designee who has been vested with the authority to
act on behalf of the applicant and has direct knowledge of the
information contained in the application and its attachments.
Any person signing an application shall also sign an affidavit
with the following certification:
        "I certify, under penalty of perjury as provided by law
    and under penalty of refusal, suspension, or revocation of
    a high volume horizontal hydraulic fracturing permit, that
    this application and all attachments are true, accurate,
    and complete to the best of my knowledge.".
    (g) The permit application shall be submitted to the
Department in both electronic and hard copy format. The
electronic format shall be searchable.
    (h) The application for a high volume horizontal hydraulic
fracturing permit may be submitted as a combined permit
application with the operator's application to drill on a form
as the Department shall prescribe. The combined application
must include the information required in this Section. If the
operator elects to submit a combined permit application,
information required by this Section that is duplicative of
information required for an application to drill is only
required to be provided once as part of the combined
application. The submission of a combined permit application
under this subsection shall not be interpreted to relieve the
applicant or the Department from complying with the
requirements of this Act or the Illinois Oil and Gas Act.
    (i) Upon receipt of a permit application, the Department
shall have no more than 60 calendar days from the date it
receives the permit application to approve, with any conditions
the Department may find necessary, or reject the application
for the high volume horizontal hydraulic fracturing permit. The
applicant may waive, in writing, the 60-day deadline upon its
own initiative or in response to a request by the Department.
    (j) If at any time during the review period the Department
determines that the permit application is not complete under
this Act, does not meet the requirements of this Section, or
requires additional information, the Department shall notify
the applicant in writing of the application's deficiencies and
allow the applicant to correct the deficiencies and provide the
Department any information requested to complete the
application. If the applicant fails to provide adequate
supplemental information within the review period, the
Department may reject the application.
(Source: P.A. 98-22, eff. 6-17-13; 98-756, eff. 7-16-14.)
 
    (225 ILCS 732/1-65)
    Sec. 1-65. Hydraulic fracturing permit; bonds.
    (a) An applicant for a high volume horizontal hydraulic
fracturing permit under this Act shall provide a bond, executed
by a surety authorized to transact business in this State. The
bond shall be in the amount of $50,000 per permit or a blanket
bond of $500,000 for all permits. If the applicant is required
to submit a bond to the Department under the Illinois Oil and
Gas Act, the applicant's submission of a bond under this
Section shall satisfy the bonding requirements provided for in
the Illinois Oil and Gas Act. In lieu of a bond, the applicant
may provide other collateral securities such as cash,
certificates of deposit, or irrevocable letters of credit under
the terms and conditions as the Department may provide by rule.
    (b) The bond or other collateral securities shall remain in
force until the well is plugged and abandoned. Upon abandoning
a well to the satisfaction of the Department and in accordance
with the Illinois Oil and Gas Act, the bond or other collateral
securities shall be promptly released by the Department. Upon
the release by the Department of the bond or other collateral
securities, any cash or collateral securities deposited shall
be returned by the Department to the applicant who deposited
it.
    (c) If, after notice and hearing, the Department determines
that any of the requirements of this Act or rules adopted under
this Act or the orders of the Department have not been complied
with within the time limit set by any notice of violation
issued under this Act, the permittee's bond or other collateral
securities shall be forfeited. Forfeiture under this
subsection shall not limit any duty of the permittee to
mitigate or remediate harms or foreclose enforcement by the
Department or the Agency. In no way will payment under this
bond exceed the aggregate penalty as specified.
    (d) When any bond or other collateral security is forfeited
under the provisions of this Act or rules adopted under this
Act, the Department shall collect the forfeiture without delay.
The surety shall have 30 days to submit payment for the bond
after receipt of notice by the permittee of the forfeiture.
    (e) All forfeitures shall be deposited in the Oil and Gas
Resource Management Mines and Minerals Regulatory Fund to be
used, as necessary, to mitigate or remediate violations of this
Act or rules adopted under this Act.
(Source: P.A. 98-22, eff. 6-17-13.)
 
    (225 ILCS 732/1-135)
    Sec. 1-135. The Oil and Gas Resource Management Mines and
Minerals Regulatory Fund. The Oil and Gas Resource Management
Mines and Minerals Regulatory Fund is created as a special fund
in the State treasury. All moneys required by this Act to be
deposited into the Fund shall be used by the Department to
administer and enforce this Act and otherwise support the
operations and programs of the Office of Oil and Gas Resource
Management Office of Mines and Minerals. Investment income that
is attributable to the investment of moneys in the Fund shall
be retained in the Fund for the uses specified in this Section.
(Source: P.A. 98-22, eff. 6-17-13.)
 
    Section 99. Effective date. This Act takes effect upon
becoming law.

Effective Date: 7/24/2015