Rep. Terri Bryant

Filed: 5/13/2015

 

 


 

 


 
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1
AMENDMENT TO SENATE BILL 1458

2    AMENDMENT NO. ______. Amend Senate Bill 1458, AS AMENDED,
3by replacing everything after the enacting clause with the
4following:
 
5    "Section 5. The Department of Natural Resources Act is
6amended by changing Section 10-5 as follows:
 
7    (20 ILCS 801/10-5)
8    Sec. 10-5. Office of Mines and Minerals.
9    (a) The Department of Natural Resources shall have within
10it an Office of Mines and Minerals, which shall be responsible
11for the functions previously vested in the Department of Mines
12and Minerals and the Abandoned Mined Lands Reclamation Council
13and such other related functions and responsibilities as may be
14provided by law.
15    (b) The Office of Mines and Minerals shall have a Director
16and a Manager.

 

 

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1    The Director of the Office of Mines and Minerals shall be a
2person thoroughly conversant with the theory and practice of
3coal mining but who is not identified with either coal
4operators or coal miners. The Director of the Office of Mines
5and Minerals must hold a certificate of competency as a mine
6examiner issued by the Illinois Mining Board.
7    The Manager of the Office of Mines and Minerals shall be a
8person who is thoroughly conversant with the theory and
9practice of coal mining in the State of Illinois.
10    (c) Notwithstanding any provision of this Act or any other
11law to the contrary, the Department of Natural Resources may
12have within it an Office of Oil and Gas Resource Management,
13which may be responsible for the functions previously vested in
14the Department of Mines and Minerals relating to oil and gas
15resources, such other related functions and responsibilities
16as may be provided by law, and other functions and
17responsibilities at the discretion of the Department of Natural
18Resources.
19(Source: P.A. 89-50, eff. 7-1-95; 89-445, eff. 2-7-96.)
 
20    Section 10. The State Finance Act is amended by changing
21Section 5.832 as follows:
 
22    (30 ILCS 105/5.832)
23    Sec. 5.832. The Oil and Gas Resource Management Mines and
24Minerals Regulatory Fund.

 

 

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1(Source: P.A. 98-22, eff. 6-17-13; 98-756, eff. 7-16-14.)
 
2    Section 15. The Hydraulic Fracturing Regulatory Act is
3amended by changing Sections 1-35, 1-65 and 1-135 as follows:
 
4    (225 ILCS 732/1-35)
5    Sec. 1-35. High volume horizontal hydraulic fracturing
6permit application.
7    (a) Every applicant for a permit under this Act shall first
8register with the Department at least 30 days before applying
9for a permit. The Department shall make available a
10registration form within 90 days after the effective date of
11this Act. The registration form shall require the following
12information:
13        (1) the name and address of the registrant and any
14    parent, subsidiary, or affiliate thereof;
15        (2) disclosure of all findings of a serious violation
16    or an equivalent violation under federal or state laws or
17    regulations in the development or operation of an oil or
18    gas exploration or production site via hydraulic
19    fracturing by the applicant or any parent, subsidiary, or
20    affiliate thereof within the previous 5 years; and
21        (3) proof of insurance to cover injuries, damages, or
22    loss related to pollution or diminution in the amount of at
23    least $5,000,000, from an insurance carrier authorized,
24    licensed, or permitted to do this insurance business in

 

 

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1    this State that holds at least an A- rating by A.M. Best &
2    Co. or any comparable rating service.
3    A registrant must notify the Department of any change in
4the information identified in paragraphs (1), (2), or (3) of
5this subsection (a) at least annually or upon request of the
6Department.
7    (b) Every applicant for a permit under this Act must submit
8the following information to the Department on an application
9form provided by the Department:
10        (1) the name and address of the applicant and any
11    parent, subsidiary, or affiliate thereof;
12        (2) the proposed well name and address and legal
13    description of the well site and its unit area;
14        (3) a statement whether the proposed location of the
15    well site is in compliance with the requirements of Section
16    1-25 of this Act and a plat, which shows the proposed
17    surface location of the well site, providing the distance
18    in feet, from the surface location of the well site to the
19    features described in subsection (a) of Section 1-25 of
20    this Act;
21        (4) a detailed description of the proposed well to be
22    used for the high volume horizontal hydraulic fracturing
23    operations including, but not limited to, the following
24    information:
25            (A) the approximate total depth to which the well
26        is to be drilled or deepened;

 

 

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1            (B) the proposed angle and direction of the well;
2            (C) the actual depth or the approximate depth at
3        which the well to be drilled deviates from vertical;
4            (D) the angle and direction of any nonvertical
5        portion of the wellbore until the well reaches its
6        total target depth or its actual final depth; and
7            (E) the estimated length and direction of the
8        proposed horizontal lateral or wellbore;
9        (5) the estimated depth and elevation, according to the
10    most recent publication of the Illinois State Geological
11    Survey of Groundwater for the location of the well, of the
12    lowest potential fresh water along the entire length of the
13    proposed wellbore;
14        (6) a detailed description of the proposed high volume
15    horizontal hydraulic fracturing operations, including, but
16    not limited to, the following:
17            (A) the formation affected by the high volume
18        horizontal hydraulic fracturing operations, including,
19        but not limited to, geologic name and geologic
20        description of the formation that will be stimulated by
21        the operation;
22            (B) the anticipated surface treating pressure
23        range;
24            (C) the maximum anticipated injection treating
25        pressure;
26            (D) the estimated or calculated fracture pressure

 

 

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1        of the producing and confining zones; and
2            (E) the planned depth of all proposed perforations
3        or depth to the top of the open hole section;
4        (7) a plat showing all known previous wellbores within
5    750 feet of any part of the horizontal wellbore that
6    penetrated within 400 vertical feet of the formation that
7    will be stimulated as part of the high volume horizontal
8    hydraulic fracturing operations;
9        (8) unless the applicant documents why the information
10    is not available at the time the application is submitted,
11    a chemical disclosure report identifying each chemical and
12    proppant anticipated to be used in hydraulic fracturing
13    fluid for each stage of the hydraulic fracturing operations
14    including the following:
15            (A) the total volume of water anticipated to be
16        used in the hydraulic fracturing treatment of the well
17        or the type and total volume of the base fluid
18        anticipated to be used in the hydraulic fracturing
19        treatment, if something other than water;
20            (B) each hydraulic fracturing additive anticipated
21        to be used in the hydraulic fracturing fluid, including
22        the trade name, vendor, a brief descriptor of the
23        intended use or function of each hydraulic fracturing
24        additive, and the Material Safety Data Sheet (MSDS), if
25        applicable;
26            (C) each chemical anticipated to be intentionally

 

 

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1        added to the base fluid, including for each chemical,
2        the Chemical Abstracts Service number, if applicable;
3        and
4            (D) the anticipated concentration in the base
5        fluid, in percent by mass, of each chemical to be
6        intentionally added to the base fluid;
7        (9) a certification of compliance with the Water Use
8    Act of 1983 and applicable regional water supply plans;
9        (10) a fresh water withdrawal and management plan that
10    shall include the following information:
11            (A) the source of the water, such as surface or
12        groundwater, anticipated to be used for water
13        withdrawals, and the anticipated withdrawal location;
14            (B) the anticipated volume and rate of each water
15        withdrawal from each withdrawal location;
16            (C) the anticipated months when water withdrawals
17        shall be made from each withdrawal location;
18            (D) the methods to be used to minimize water
19        withdrawals as much as feasible; and
20            (E) the methods to be used for surface water
21        withdrawals to minimize adverse impact to aquatic
22        life.
23        Where a surface water source is wholly contained within
24    a single property, and the owner of the property expressly
25    agrees in writing to its use for water withdrawals, the
26    applicant is not required to include this surface water

 

 

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1    source in the fresh water withdrawal and management plan;
2        (11) a plan for the handling, storage, transportation,
3    and disposal or reuse of hydraulic fracturing fluids and
4    hydraulic fracturing flowback. The plan shall identify the
5    specific Class II injection well or wells that will be used
6    to dispose of the hydraulic fracturing flowback. The plan
7    shall describe the capacity of the tanks to be used for the
8    capture and storage of flowback and of the lined reserve
9    pit to be used, if necessary, to temporarily store any
10    flowback in excess of the capacity of the tanks.
11    Identification of the Class II injection well or wells
12    shall be by name, identification number, and specific
13    location and shall include the date of the most recent
14    mechanical integrity test for each Class II injection well;
15        (12) a well site safety plan to address proper safety
16    measures to be employed during high volume horizontal
17    hydraulic fracturing operations for the protection of
18    persons on the site as well as the general public. Within
19    15 calendar days after submitting the permit application to
20    the Department, the applicant must provide a copy of the
21    plan to the county or counties in which hydraulic
22    fracturing operations will occur. Within 5 calendar days of
23    its receipt, the Department shall provide a copy of the
24    well site safety plan to the Office of the State Fire
25    Marshal;
26        (13) a containment plan describing the containment

 

 

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1    practices and equipment to be used and the area of the well
2    site where containment systems will be employed, and within
3    5 calendar days of its receipt, the Department shall
4    provide a copy of the containment plan to the Office of the
5    State Fire Marshal;
6        (14) a casing and cementing plan that describes the
7    casing and cementing practices to be employed, including
8    the size of each string of pipe, the starting point, and
9    depth to which each string is to be set and the extent to
10    which each string is to be cemented;
11        (15) a traffic management plan that identifies the
12    anticipated roads, streets, and highways that will be used
13    for access to and egress from the well site. The traffic
14    management plan will include a point of contact to discuss
15    issues related to traffic management. Within 15 calendar
16    days after submitting the permit application to the
17    Department, the applicant must provide a copy of the
18    traffic management plan to the county or counties in which
19    the well site is located, and within 5 calendar days of its
20    receipt, the Department shall provide a copy of the traffic
21    management plan to the Office of the State Fire Marshal;
22        (16) the names and addresses of all owners of any real
23    property within 1,500 feet of the proposed well site, as
24    disclosed by the records in the office of the recorder of
25    the county or counties;
26        (17) drafts of the specific public notice and general

 

 

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1    public notice as required by Section 1-40 of this Act;
2        (18) a statement that the well site at which the high
3    volume horizontal hydraulic fracturing operation will be
4    conducted will be restored in compliance with Section
5    240.1181 of Title 62 of the Illinois Administrative Code
6    and Section 1-95 of this Act;
7        (19) proof of insurance to cover injuries, damages, or
8    loss related to pollution in the amount of at least
9    $5,000,000; and
10        (20) any other relevant information which the
11    Department may, by rule, require.
12    (c) Where an application is made to conduct high volume
13horizontal fracturing operations at a well site located within
14the limits of any city, village, or incorporated town, the
15application shall state the name of the city, village, or
16incorporated town and be accompanied with a certified copy of
17the official consent for the hydraulic fracturing operations to
18occur from the municipal authorities where the well site is
19proposed to be located. No permit shall be issued unless
20consent is secured and filed with the permit application. In
21the event that an amended location is selected, the original
22permit shall not be valid unless a new certified consent is
23filed for the amended location.
24    (d) The hydraulic fracturing permit application shall be
25accompanied by a bond as required by subsection (a) of Section
261-65 of this Act.

 

 

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1    (e) Each application for a permit under this Act shall
2include payment of a non-refundable fee of $13,500. Of this
3fee, $11,000 shall be deposited into the Oil and Gas Resource
4Management Mines and Minerals Regulatory Fund for the
5Department to use to administer and enforce this Act and
6otherwise support the operations and programs of the Office of
7Oil and Gas Resource Management Office of Mines and Minerals.
8The remaining $2,500 shall be deposited into the Illinois Clean
9Water Fund for the Agency to use to carry out its functions
10under this Act. The Department shall not initiate its review of
11the permit application until the applicable fee under this
12subsection (e) has been submitted to and received by the
13Department.
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 its
22own initiative or in response to a request by the Department.
23    (j) 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(Source: P.A. 98-22, eff. 6-17-13; 98-756, eff. 7-16-14.)
 
8    (225 ILCS 732/1-65)
9    Sec. 1-65. Hydraulic fracturing permit; bonds.
10    (a) An applicant for a high volume horizontal hydraulic
11fracturing permit under this Act shall provide a bond, executed
12by a surety authorized to transact business in this State. The
13bond shall be in the amount of $50,000 per permit or a blanket
14bond of $500,000 for all permits. If the applicant is required
15to submit a bond to the Department under the Illinois Oil and
16Gas Act, the applicant's submission of a bond under this
17Section shall satisfy the bonding requirements provided for in
18the Illinois Oil and Gas Act. In lieu of a bond, the applicant
19may provide other collateral securities such as cash,
20certificates of deposit, or irrevocable letters of credit under
21the terms and conditions as the Department may provide by rule.
22    (b) The bond or other collateral securities shall remain in
23force until the well is plugged and abandoned. Upon abandoning
24a well to the satisfaction of the Department and in accordance
25with the Illinois Oil and Gas Act, the bond or other collateral

 

 

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1securities shall be promptly released by the Department. Upon
2the release by the Department of the bond or other collateral
3securities, any cash or collateral securities deposited shall
4be returned by the Department to the applicant who deposited
5it.
6    (c) If, after notice and hearing, the Department determines
7that any of the requirements of this Act or rules adopted under
8this Act or the orders of the Department have not been complied
9with within the time limit set by any notice of violation
10issued under this Act, the permittee's bond or other collateral
11securities shall be forfeited. Forfeiture under this
12subsection shall not limit any duty of the permittee to
13mitigate or remediate harms or foreclose enforcement by the
14Department or the Agency. In no way will payment under this
15bond exceed the aggregate penalty as specified.
16    (d) When any bond or other collateral security is forfeited
17under the provisions of this Act or rules adopted under this
18Act, the Department shall collect the forfeiture without delay.
19The surety shall have 30 days to submit payment for the bond
20after receipt of notice by the permittee of the forfeiture.
21    (e) All forfeitures shall be deposited in the Oil and Gas
22Resource Management Mines and Minerals Regulatory Fund to be
23used, as necessary, to mitigate or remediate violations of this
24Act or rules adopted under this Act.
25(Source: P.A. 98-22, eff. 6-17-13.)
 

 

 

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1    (225 ILCS 732/1-135)
2    Sec. 1-135. The Oil and Gas Resource Management Mines and
3Minerals Regulatory Fund. The Oil and Gas Resource Management
4Mines and Minerals Regulatory Fund is created as a special fund
5in the State treasury. All moneys required by this Act to be
6deposited into the Fund shall be used by the Department to
7administer and enforce this Act and otherwise support the
8operations and programs of the Office of Oil and Gas Resource
9Management Office of Mines and Minerals. Investment income that
10is attributable to the investment of moneys in the Fund shall
11be retained in the Fund for the uses specified in this Section.
12(Source: P.A. 98-22, eff. 6-17-13.)
 
13    Section 99. Effective date. This Act takes effect upon
14becoming law.".