Illinois General Assembly - Full Text of HB1562
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Full Text of HB1562  101st General Assembly




State of Illinois
2019 and 2020


Introduced , by Rep. Will Guzzardi


225 ILCS 725/1  from Ch. 96 1/2, par. 5401
225 ILCS 725/6  from Ch. 96 1/2, par. 5409
225 ILCS 725/8e new
225 ILCS 732/1-5
225 ILCS 732/1-35
225 ILCS 732/1-90 new

    Amends the Illinois Oil and Gas Act and the Hydraulic Fracturing Regulatory Act. Requires as part of the permit application for drilling or hydraulic fracturing operations the written consent of each owner of a mineral interest affected by the removal of minerals in the conduct of the proposed operations and each surface owner affected by the removal of minerals in the conduct of the proposed operations, unless he or she is the mineral interest owner and has provided consent as such. Provides that notwithstanding any other provision of statutory or common law, a person shall not drill, conduct hydraulic fracturing operations, or remove minerals as a result of any means regulated by the Acts including, but not limited to, horizontal drilling, without the express, written consent of each owner of a mineral interest affected by the operations or removal of minerals in the conduct of the operations. Provides for enforcement by the Department of Natural Resources with penalties and cessation of operations for violations, and payment of treble the full market value of the mineral resource extracted in violation to the owner of the mineral interest.

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HB1562LRB101 00160 XWW 45160 b

1    AN ACT concerning regulation.
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4    Section 5. The Illinois Oil and Gas Act is amended by
5changing Sections 1 and 6 and by adding Section 8e as follows:
6    (225 ILCS 725/1)  (from Ch. 96 1/2, par. 5401)
7    Sec. 1. Unless the context otherwise requires, the words
8defined in this Section have the following meanings as used in
9this Act.
10    "Person" means any natural person, corporation,
11association, partnership, governmental agency or other legal
12entity, receiver, trustee, guardian, executor, administrator,
13fiduciary or representative of any kind.
14    "Oil" means natural crude oil or petroleum and other
15hydrocarbons, regardless of gravity, which are produced at the
16well in liquid form by ordinary production methods or by the
17use of an oil and gas separator and which are not the result of
18condensation of gas after it leaves the underground reservoir.
19    "Gas" means all natural gas, including casinghead gas, and
20all other natural hydrocarbons not defined above as oil.
21    "Mineral interest" means the right to extract, modify, and
22sell minerals, including underground hydrocarbons, that
23underlie a defined parcel of real property.



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1    "Pool" means a natural, underground reservoir containing
2in whole or in part, a natural accumulation of oil or gas, or
3both. Each productive zone or stratum of a general structure,
4which is completely separated from any other zone or stratum in
5the structure, is deemed a separate "pool" as used herein.
6    "Field" means the same general surface area which is
7underlaid or appears to be underlaid by one or more pools.
8    "Permit" means the Department's written authorization
9allowing a well to be drilled, deepened, converted, or operated
10by an owner.
11    "Permittee" means the owner holding or required to hold the
12permit, and who is also responsible for paying assessments in
13accordance with Section 19.7 of this Act and, where applicable,
14executing and filing the bond associated with the well as
15principal and who is responsible for compliance with all
16statutory and regulatory requirements pertaining to the well.
17    When the right and responsibility for operating a well is
18vested in a receiver or trustee appointed by a court of
19competent jurisdiction, the permit shall be issued to the
20receiver or trustee.
21    "Orphan Well" means a well for which: (1) no fee assessment
22under Section 19.7 of this Act has been paid or no other bond
23coverage has been provided for 2 consecutive years; (2) no oil
24or gas has been produced from the well or from the lease or
25unit on which the well is located for 2 consecutive years; and
26(3) no permittee or owner can be identified or located by the



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1Department. Orphaned wells include wells that may have been
2drilled for purposes other than those for which a permit is
3required under this Act if the well is a conduit for oil or
4salt water intrusions into fresh water zones or onto the
5surface which may be caused by oil and gas operations.
6    "Owner" means the person who has the right to drill into
7and produce from any pool, and to appropriate the production
8either for the person or for the person and another, or others,
9or solely for others, excluding the mineral owner's royalty if
10the right to drill and produce has been granted under an oil
11and gas lease. An owner may also be a person granted the right
12to drill and operate an injection (Class II UIC) well
13independent of the right to drill for and produce oil or gas.
14When the right to drill, produce, and appropriate production is
15held by more than one person, then all persons holding these
16rights may designate the owner by a written operating agreement
17or similar written agreement. In the absence of such an
18agreement, and subject to the provisions of Sections 22.2 and
1923.1 through 23.16 of this Act, the owner shall be the person
20designated in writing by a majority in interest of the persons
21holding these rights.
22    "Department" means the Department of Natural Resources.
23    "Director" means the Director of Natural Resources.
24    "Mining Board" means the State Mining Board in the
25Department of Natural Resources, Office of Mines and Minerals.
26    "Mineral Owner's Royalty" means the share of oil and gas



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1production reserved in an oil and gas lease free of all costs
2by an owner of the minerals whether denominated royalty or
3overriding royalty.
4    "Waste" means "physical waste" as that term is generally
5understood in the oil and gas industry, and further includes:
6        (1) the locating, drilling, and producing of any oil or
7    gas well or wells drilled contrary to the valid order,
8    rules and regulations adopted by the Department under the
9    provisions of this Act;
10        (2) permitting the migration of oil, gas, or water from
11    the stratum in which it is found, into other strata,
12    thereby ultimately resulting in the loss of recoverable
13    oil, gas or both;
14        (3) the drowning with water of any stratum or part
15    thereof capable of producing oil or gas, except for
16    secondary recovery purposes;
17        (4) the unreasonable damage to underground, fresh or
18    mineral water supply, workable coal seams, or other mineral
19    deposits in the operations for the discovery, development,
20    production, or handling of oil and gas;
21        (5) the unnecessary or excessive surface loss or
22    destruction of oil or gas resulting from evaporation,
23    seepage, leakage or fire, especially such loss or
24    destruction incident to or resulting from the escape of gas
25    into the open air in excessive or unreasonable amounts,
26    provided, however, it shall not be unlawful for the



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1    operator or owner of any well producing both oil and gas to
2    burn such gas in flares when such gas is, under the other
3    provisions of this Act, lawfully produced, and where there
4    is no market at the well for such escaping gas; and where
5    the same is used for the extraction of casinghead gas, it
6    shall not be unlawful for the operator of the plant after
7    the process of extraction is completed, to burn such
8    residue in flares when there is no market at such plant for
9    such residue gas;
10        (6) permitting unnecessary fire hazards;
11        (7) permitting unnecessary damage to or destruction of
12    the surface, soil, animal, fish or aquatic life or property
13    from oil or gas operations.
14    "Drilling Unit" means the surface area allocated by an
15order or regulation of the Department to the drilling of a
16single well for the production of oil or gas from an individual
18    "Enhanced Recovery Method" means any method used in an
19effort to recover hydrocarbons from a pool by injection of
20fluids, gases or other substances to maintain, restore or
21augment natural reservoir energy, or by introducing immiscible
22or miscible gases, chemicals, other substances or heat or by
23in-situ combustion, or by any combination thereof.
24    "Surface owner" has the meaning as defined in Section 1 of
25the Severed Mineral Interest Act.
26    "Well-Site Equipment" means any production-related



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1equipment or materials specific to the well, including motors,
2pumps, pump jacks, tanks, tank batteries, separators,
3compressors, casing, tubing, and rods.
4(Source: P.A. 99-78, eff. 7-20-15.)
5    (225 ILCS 725/6)  (from Ch. 96 1/2, par. 5409)
6    Sec. 6. The Department shall have the authority to conduct
7hearings and to make such reasonable rules as may be necessary
8from time to time in the proper administration and enforcement
9of this Act, including the adoption of rules and the holding of
10hearings for the following purposes:
11        (1) To require the drilling, casing and plugging of
12    wells to be done in such a manner as to prevent the
13    migration of oil or gas from one stratum to another; to
14    prevent the intrusion of water into oil, gas or coal
15    strata; to prevent the pollution of fresh water supplies by
16    oil, gas or salt water.
17        (2) To require the person desiring or proposing to
18    drill, deepen or convert any well for the exploration or
19    production of oil or gas, for injection or water supply in
20    connection with enhanced recovery projects, for the
21    disposal of salt water, brine, or other oil or gas field
22    wastes, or for input, withdrawal, or observation in
23    connection with the storage of natural gas or other liquid
24    or gaseous hydrocarbons before commencing the drilling,
25    deepening or conversion of any such well, to make



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1    application to the Department upon such form as the
2    Department may prescribe and to comply with the provisions
3    of this Section. The drilling, deepening or conversion of
4    any well is hereby prohibited until such application is
5    made and the applicant is issued a permit therefor as
6    provided by this Act. Each application for a well permit
7    shall include the following: (A) the The exact location of
8    the well, (B) the name and address of the manager,
9    operator, contractor, driller, or any other person
10    responsible for the conduct of drilling operations, (C) the
11    proposed depth of the well, (C-3) written consent of each
12    owner of a mineral interest affected by the removal of
13    minerals in the conduct of the proposed drilling
14    operations, (C-5) written consent of each surface owner
15    affected by the removal of minerals in the conduct of the
16    proposed drilling operations, unless he or she is the
17    mineral interest owner and has provided consent under
18    subparagraph (C-3) of this paragraph (2), (D) lease
19    ownership information, and (E) such other relevant
20    information as the Department may deem necessary or
21    convenient to effectuate the purposes of this Act.
22        Additionally, each applicant who has not been issued a
23    permit that is of record on the effective date of this
24    amendatory Act of 1991, or who has not thereafter made
25    payments of assessments under Section 19.7 of this Act for
26    at least 2 consecutive years preceding the application,



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1    shall execute, as principal, and file with the Department a
2    bond, executed by a surety authorized to transact business
3    in this State, in an amount estimated to cover the cost of
4    plugging the well and restoring the well site, but not to
5    exceed $5000, as determined by the Department for each
6    well, or a blanket bond in an amount not to exceed $100,000
7    for all wells, before drilling, deepening, converting, or
8    operating any well for which a permit is required that has
9    not previously been plugged and abandoned in accordance
10    with the Act. The Department shall release the bond if the
11    well, or all wells in the case of a blanket bond, is not
12    completed but is plugged and the well site restored in
13    accordance with the Department's rules or is completed in
14    accordance with the Department's rules and the permittee
15    pays assessments to the Department in accordance with
16    Section 19.7 of this Act for 2 consecutive years.
17        In lieu of a surety bond, the applicant may provide
18    cash, certificates of deposit, or irrevocable letters of
19    credit under such terms and conditions as the Department
20    may provide by rule.
21        The sureties on all bonds in effect on the effective
22    date of this amendatory Act of 1991 shall remain liable as
23    sureties in accordance with their undertakings until
24    released by the Department from further liability under the
25    Act. The principal on each bond in effect on the effective
26    date of this amendatory Act of 1991 shall be released from



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1    the obligation of maintaining the bond if either the well
2    covered by a surety bond has been plugged and the well site
3    restored in accordance with the Department's rules or the
4    principal of the surety has paid the initial assessment in
5    accordance with Section 19.7 and no well or well site
6    covered by the surety bond is in violation of the Act.
7        No permit shall be issued to a corporation incorporated
8    outside of Illinois until the corporation has been
9    authorized to do business in Illinois.
10        No permit shall be issued to an individual,
11    partnership, or other unincorporated entity that is not a
12    resident of Illinois until that individual, partnership,
13    or other unincorporated entity has irrevocably consented
14    to be sued in Illinois.
15        (3) To require the person assigning, transferring, or
16    selling any well for which a permit is required under this
17    Act to notify the Department of the change of ownership.
18    The notification shall be on a form prescribed by the
19    Department, shall be executed by the current permittee and
20    by the new permittee, or their authorized representatives,
21    and shall be filed with the Department within 30 days after
22    the effective date of the assignment, transfer or sale.
23    Within the 30 day notification period and prior to
24    operating the well, the new permittee shall pay the
25    required well transfer fee and, where applicable, file with
26    the Department the bond required under subsection (2) of



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1    this Section.
2        (4) To require the filing with the State Geological
3    Survey of all geophysical logs, a well drilling report and
4    drill cuttings or cores, if cores are required, within 90
5    days after drilling ceases; and to file a completion report
6    with the Department within 30 days after the date of first
7    production following initial drilling or any reworking, or
8    after the plugging of the well, if a dry hole. A copy of
9    each completion report submitted to the Department shall be
10    delivered to the State Geological Survey. The Department
11    and the State Geological Survey shall keep the reports
12    confidential, if requested in writing by the permittee, for
13    2 years after the date the permit is issued by the
14    Department. This confidentiality requirement shall not
15    prohibit the use of the report for research purposes,
16    provided the State Geological Survey does not publish
17    specific data or identify the well to which the completion
18    report pertains.
19        (5) To prevent "blowouts", "caving" and "seepage" in
20    the same sense that conditions indicated by such terms are
21    generally understood in the oil and gas business.
22        (6) To prevent fires.
23        (7) To ascertain and identify the ownership of all oil
24    and gas wells, producing leases, refineries, tanks,
25    plants, structures, and all storage and transportation
26    equipment and facilities.



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1        (8) To regulate the use of any enhanced recovery method
2    in oil pools and oil fields.
3        (9) To regulate or prohibit the use of vacuum.
4        (10) To regulate the spacing of wells, the issuance of
5    permits, and the establishment of drilling units.
6        (11) To regulate directional drilling of oil or gas
7    wells.
8        (12) To regulate the plugging of wells.
9        (13) To require that wells for which no logs or
10    unsatisfactory logs are supplied shall be completely
11    plugged with cement from bottom to top.
12        (14) To require a description in such form as is
13    determined by the Department of the method of well plugging
14    for each well, indicating the character of material used
15    and the positions and dimensions of each plug.
16        (15) To prohibit waste, as defined in this Act.
17        (16) To require the keeping of such records, the
18    furnishing of such relevant information and the
19    performance of such tests as the Department may deem
20    necessary to carry into effect the purposes of this Act.
21        (17) To regulate the disposal of salt or
22    sulphur-bearing water and any oil field waste produced in
23    the operation of any oil or gas well.
24        (18) To prescribe rules, conduct inspections and
25    require compliance with health and safety standards for the
26    protection of persons working underground in connection



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1    with any oil and gas operations. For the purposes of this
2    paragraph, oil and gas operations include drilling or
3    excavation, production operations, plugging or filling in
4    and sealing, or any other work requiring the presence of
5    workers in shafts or excavations beneath the surface of the
6    earth. Rules promulgated by the Department may include
7    minimum qualifications of persons performing tasks
8    affecting the health and safety of workers underground,
9    minimum standards for the operation and maintenance of
10    equipment, and safety procedures and precautions, and
11    shall conform, as nearly as practicable, to corresponding
12    qualifications, standards and procedures prescribed under
13    the Coal Mining Act.
14        (19) To deposit the amount of any forfeited surety bond
15    or other security in the Plugging and Restoration Fund, a
16    special fund in the State treasury which is hereby created;
17    to deposit into the Fund any amounts collected, reimbursed
18    or recovered by the Department under Sections 19.5, 19.6
19    and 19.7 of this Act; to accept, receive, and deposit into
20    the Fund any grants, gifts or other funds which may be made
21    available from public or private sources and all earnings
22    received from investment of monies in the Fund; and to make
23    expenditures from the Fund for the purposes of plugging,
24    replugging or repairing any well, and restoring the site of
25    any well, determined by the Department to be abandoned or
26    ordered by the Department to be plugged, replugged,



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1    repaired or restored under Sections 8a, 19 or 19.1 of this
2    Act, including expenses in administering the Fund.
3    For the purposes of this Act, the State Geological Survey
4shall co-operate with the Department in making available its
5scientific and technical information on the oil and gas
6resources of the State, and the Department shall in turn
7furnish a copy to the State Geological Survey of all drilling
8permits as issued, and such other drilling and operating data
9received or secured by the Department which are pertinent to
10scientific research on the State's mineral resources.
11(Source: P.A. 86-205; 86-364; 86-1177; 87-744.)
12    (225 ILCS 725/8e new)
13    Sec. 8e. Mineral interest owner consent.
14    (a) Notwithstanding any other provision of statutory or
15common law, a person shall not drill or remove minerals as a
16result of any means regulated by this Act, including, but not
17limited to, horizontal drilling, without the express, written
18consent of each owner of a mineral interest affected by the
19drilling or removal of minerals in the conduct of the drilling
21    (b) Any person who violates or refuses to comply with any
22of the provisions of this Section shall be subject to the
23provisions of Sections 8a and 19.1 of this Act.
24    (c) If the Department finds that a person or permittee has
25violated this Section, in addition to permanent cessation of



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1the operations in violation of this Section and any civil or
2other penalty assessed by the Department, the person or
3permittee shall be ordered to pay treble the full market value
4of the mineral resource extracted in violation of this Act to
5the owner of the mineral interest.
6    (d) Nothing in this Section shall be construed to prohibit
7any owner of a mineral interest from initiating a civil cause
8of action in any court with jurisdiction for an alleged
9violation of this Section for compensatory or punitive damages,
10or both.
11    Section 10. The Hydraulic Fracturing Regulatory Act is
12amended by changing Sections 1-5 and 1-35 and by adding Section
131-90 as follows:
14    (225 ILCS 732/1-5)
15    Sec. 1-5. Definitions. For the purposes of this Act, unless
16the context otherwise requires:
17    "Agency" means the Illinois Environmental Protection
19    "Aquatic life" means all fish, reptiles, amphibians,
20crayfish, and mussels.
21    "Aquifer" means saturated (with groundwater) soils and
22geologic materials that are sufficiently permeable to readily
23yield economically useful quantities (at least 70 gallons per
24minute) of fresh water to wells, springs, or streams under



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1ordinary hydraulic gradients. "Aquifer" is limited to aquifers
2identified as major sand and gravel aquifers in the Illinois
3State Water Survey's Illinois Community Water Supply Wells map,
4Map Series 2006-01.
5    "Base fluid" means the continuous phase fluid type,
6including, but not limited to, water used in a high volume
7horizontal hydraulic fracturing operation.
8    "BTEX" means benzene, toluene, ethylbenzene, and xylene.
9    "Chemical" means any element, chemical compound, or
10mixture of elements or compounds that has its own specific name
11or identity, such as a Chemical Abstracts Service number,
12regardless of whether the chemical is subject to the
13requirements of paragraph (2) of subsection (g) of 29 Code of
14Federal Regulations §1910.1200.
15    "Chemical Abstracts Service" means the division of the
16American Chemical Society that is the globally recognized
17authority for information on chemical substances.
18    "Chemical Abstracts Service number" or "CAS number" means
19the unique identification number assigned to a chemical by the
20Chemical Abstracts Service.
21    "Completion combustion device" means any ignition device,
22installed horizontally or vertically, used in exploration and
23production operations to combust otherwise vented emissions.
24    "Delineation well" means a well drilled in order to
25determine the boundary of a field or producing reservoir.
26    "Department" means the Illinois Department of Natural



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2    "Diesel" means a substance having any one of the following
3Chemical Abstracts Service Registry numbers: 68334-30-5;
468476-34-6; 68476-30-2; 68476-31-3; 8008-20-6; or 68410-00-4.
5"Diesel" includes any additional substances regulated by the
6United States Environmental Protection Agency as diesel fuel
7used in hydraulic fracturing activities under the federal Safe
8Drinking Water Act.
9    "Director" means the Director of Natural Resources.
10    "Enhanced oil recovery operation" means any secondary or
11tertiary recovery method used in an effort to recover
12hydrocarbons from a pool by injection of fluids, gases or other
13substances to maintain, restore, or augment natural reservoir
14energy, or by introducing gases, chemicals, other substances,
15or heat, or by in-situ combustion, or by any combination
17    "Flare" means a thermal oxidation system using an open,
18enclosed, or semi-enclosed flame. "Flare" does not include
19completion combustion devices as defined in this Section.
20    "Flowback period" means the process of allowing fluids to
21flow from a well following a treatment, either in preparation
22for a subsequent phase of treatment or in preparation for
23cleanup and returning the well to production. "Flowback period"
24begins when the material the hydraulic fracturing fluid returns
25to the surface following hydraulic fracturing or
26re-fracturing. "Flowback period" ends with either well shut in



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1or when the well is producing continuously to the flow line or
2to a storage vessel for collection, whichever occurs first.
3    "Fresh water" means surface and subsurface water in its
4natural state that is suitable for drinking water for human
5consumption, domestic livestock, irrigation, industrial,
6municipal and recreational purposes, that is capable of
7supporting aquatic life, and contains less than 10,000 ppm
8total dissolved solids.
9    "Gas" means all natural gas, including casinghead gas, and
10all other natural hydrocarbons not defined as oil.
11    "Groundwater" means any water below the land surface that
12is within the saturated zone or geologic materials where the
13fluid pressure in the pore space is equal to or greater than
14atmospheric pressure.
15    "Health professional" means a physician, physician
16assistant, nurse practitioner, a registered professional
17nurse, emergency medical technician, or other individual
18appropriately licensed or registered to provide health care
20    "High volume horizontal hydraulic fracturing operations"
21means all stages of a stimulation treatment of a horizontal
22well as defined by this Act by the pressurized application of
23more than 80,000 gallons per stage or more than 300,000 gallons
24total of hydraulic fracturing fluid and proppant to initiate or
25propagate fractures in a geologic formation to enhance
26extraction or production of oil or gas.



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



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



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1well in liquid form by ordinary production methods or by the
2use of an oil and gas separator and which are not the result of
3condensation of gas after it leaves the underground reservoir.
4    "Operator" means the individual or entity controlling the
5right to drill or produce a horizontal well in accordance with
6the requirements of the Illinois Oil and Gas Act.
7    "Owner" shall have the same meaning as provided in Section
81 of the Illinois Oil and Gas Act.
9    "Perennial stream" means a stream that has continuous flow
10in its stream bed during all of the calendar year.
11    "Permit" means a high volume horizontal hydraulic
12fracturing permit.
13    "Permittee" means a person holding a high volume horizontal
14hydraulic fracturing permit under this Act.
15    "Person" means any individual, partnership,
16co-partnership, firm, company, limited liability company,
17corporation, association, joint stock company, trust, estate,
18political subdivision, state agency, or any other legal entity
19or their legal representative, agent, or assigns.
20    "Pollution or diminution" means:
21        (1) in groundwater, any of the following:
22            (A) detection of benzene or any other carcinogen in
23        any Class I, Class II, or Class III groundwater;
24            (B) detection of any constituent in item (i) of
25        subparagraph (A) of paragraph (3) of subsection (a) of
26        35 Ill. Adm. Code 620.310 equal to or above the listed



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



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1the public, including wells and well structures, intakes and
2cribs, pumping stations, treatment plants, reservoirs, and
3storage tanks and appurtenances, collectively or severally,
4actually used or intended for use for the purpose of furnishing
5water for drinking or general domestic use, and which serves at
6least 15 service connections or which regularly serves at least
725 persons at least 60 days per year.
8    "Register of Land and Water Reserves" means the list of
9areas registered in accordance with Section 16 of the Illinois
10Natural Areas Preservation Act and Part 4010 of Title 17 of the
11Illinois Administrative Code.
12    "Release" means any spilling, leaking, pumping, pouring,
13emitting, emptying, discharging, injecting, escaping,
14leaching, dumping, or disposing into the environment.
15    "Serious violation" means any violation set forth in 62
16Ill. Adm. Code 240.140(c).
17    "Service connection" means the opening, including all
18fittings and appurtenances, at the water main through which
19water is supplied to the user.
20    "Surface owner" has the meaning as defined in Section 1 of
21the Severed Mineral Interest Act.
22    "Surface water" means all water that is open to the
23atmosphere and subject to surface runoff.
24    "Total water volume" means the total quantity of water from
25all sources used in the high volume horizontal hydraulic
26fracturing operations, including surface water, groundwater,



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1produced water, or recycled water.
2    "True vertical depth" or "TVD" means the vertical distance
3from a depth in a planned or existing wellbore or well to a
4point at the surface.
5    "Water pollution" means any alteration of the physical,
6thermal, chemical, biological, or radioactive properties of
7any waters of the State, or the discharge of any contaminant
8into any water of the State, as will or is likely to create a
9nuisance or render the waters harmful, detrimental, or
10injurious to public health, safety, or welfare, or to domestic,
11commercial, industrial, agricultural, recreational, or other
12legitimate uses, or to livestock, wild animals, birds, or fish
13or other aquatic life.
14    "Water source" means (1) any existing water well or
15developed spring used for human or domestic animal consumption,
16or (2) any river, perennial stream, aquifer, natural or
17artificial lake, pond, wetland listed on the Register of Land
18and Water Reserves, or reservoir.
19    "Well" means any drill hole required to be permitted under
20the Illinois Oil and Gas Act.
21    "Well site" means surface areas, including the well,
22occupied by all equipment or facilities necessary for or
23incidental to high volume horizontal hydraulic fracturing
24operations, drilling, production, or plugging a well.
25    "Wildcat well" means a well outside known fields or the
26first well drilled in an oil or gas field where no other oil



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1and gas production exists.
2    "Wildlife" means any bird or mammal that are by nature wild
3by way of distinction from those that are naturally tame and
4are ordinarily living unconfined in a state of nature without
5the care of man.
6(Source: P.A. 98-22, eff. 6-17-13.)
7    (225 ILCS 732/1-35)
8    Sec. 1-35. High volume horizontal hydraulic fracturing
9permit application.
10    (a) Every applicant for a permit under this Act shall first
11register with the Department at least 30 days before applying
12for a permit. The Department shall make available a
13registration form within 90 days after the effective date of
14this Act. The registration form shall require the following
16        (1) the name and address of the registrant and any
17    parent, subsidiary, or affiliate thereof;
18        (2) disclosure of all findings of a serious violation
19    or an equivalent violation under federal or state laws or
20    regulations in the development or operation of an oil or
21    gas exploration or production site via hydraulic
22    fracturing by the applicant or any parent, subsidiary, or
23    affiliate thereof within the previous 5 years; and
24        (3) proof of insurance to cover injuries, damages, or
25    loss related to pollution or diminution in the amount of at



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1    least $5,000,000, from an insurance carrier authorized,
2    licensed, or permitted to do this insurance business in
3    this State that holds at least an A- rating by A.M. Best &
4    Co. or any comparable rating service.
5    A registrant must notify the Department of any change in
6the information identified in paragraphs (1), (2), or (3) of
7this subsection (a) at least annually or upon request of the
9    (b) Every applicant for a permit under this Act must submit
10the following information to the Department on an application
11form provided by the Department:
12        (1) the name and address of the applicant and any
13    parent, subsidiary, or affiliate thereof;
14        (2) the proposed well name and address and legal
15    description of the well site and its unit area;
16        (3) a statement whether the proposed location of the
17    well site is in compliance with the requirements of Section
18    1-25 of this Act and a plat, which shows the proposed
19    surface location of the well site, providing the distance
20    in feet, from the surface location of the well site to the
21    features described in subsection (a) of Section 1-25 of
22    this Act;
23        (4) a detailed description of the proposed well to be
24    used for the high volume horizontal hydraulic fracturing
25    operations including, but not limited to, the following
26    information:



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



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



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1        applicable;
2            (C) each chemical anticipated to be intentionally
3        added to the base fluid, including for each chemical,
4        the Chemical Abstracts Service number, if applicable;
5        and
6            (D) the anticipated concentration in the base
7        fluid, in percent by mass, of each chemical to be
8        intentionally added to the base fluid;
9        (9) a certification of compliance with the Water Use
10    Act of 1983 and applicable regional water supply plans;
11        (10) a fresh water withdrawal and management plan that
12    shall include the following information:
13            (A) the source of the water, such as surface or
14        groundwater, anticipated to be used for water
15        withdrawals, and the anticipated withdrawal location;
16            (B) the anticipated volume and rate of each water
17        withdrawal from each withdrawal location;
18            (C) the anticipated months when water withdrawals
19        shall be made from each withdrawal location;
20            (D) the methods to be used to minimize water
21        withdrawals as much as feasible; and
22            (E) the methods to be used for surface water
23        withdrawals to minimize adverse impact to aquatic
24        life.
25        Where a surface water source is wholly contained within
26    a single property, and the owner of the property expressly



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1    agrees in writing to its use for water withdrawals, the
2    applicant is not required to include this surface water
3    source in the fresh water withdrawal and management plan;
4        (11) a plan for the handling, storage, transportation,
5    and disposal or reuse of hydraulic fracturing fluids and
6    hydraulic fracturing flowback. The plan shall identify the
7    specific Class II injection well or wells that will be used
8    to dispose of the hydraulic fracturing flowback. The plan
9    shall describe the capacity of the tanks to be used for the
10    capture and storage of flowback and of the lined reserve
11    pit to be used, if necessary, to temporarily store any
12    flowback in excess of the capacity of the tanks.
13    Identification of the Class II injection well or wells
14    shall be by name, identification number, and specific
15    location and shall include the date of the most recent
16    mechanical integrity test for each Class II injection well;
17        (12) a well site safety plan to address proper safety
18    measures to be employed during high volume horizontal
19    hydraulic fracturing operations for the protection of
20    persons on the site as well as the general public. Within
21    15 calendar days after submitting the permit application to
22    the Department, the applicant must provide a copy of the
23    plan to the county or counties in which hydraulic
24    fracturing operations will occur. Within 5 calendar days of
25    its receipt, the Department shall provide a copy of the
26    well site safety plan to the Office of the State Fire



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



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1    the county or counties;
2        (16.3) the written consent of each owner of a mineral
3    interest affected by the removal of minerals in the conduct
4    of the proposed hydraulic fracturing operations;
5        (16.5) written consent of each surface owner affected
6    by the conduct of the proposed hydraulic fracturing
7    operations, unless he or she is the mineral interest owner
8    and has provided consent under paragraph (16.3) of this
9    subsection (b);
10        (17) drafts of the specific public notice and general
11    public notice as required by Section 1-40 of this Act;
12        (18) a statement that the well site at which the high
13    volume horizontal hydraulic fracturing operation will be
14    conducted will be restored in compliance with Section
15    240.1181 of Title 62 of the Illinois Administrative Code
16    and Section 1-95 of this Act;
17        (19) proof of insurance to cover injuries, damages, or
18    loss related to pollution in the amount of at least
19    $5,000,000; and
20        (20) any other relevant information which the
21    Department may, by rule, require.
22    (c) Where an application is made to conduct high volume
23horizontal fracturing operations at a well site located within
24the limits of any city, village, or incorporated town, the
25application shall state the name of the city, village, or
26incorporated town and be accompanied with a certified copy of



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1the official consent for the hydraulic fracturing operations to
2occur from the municipal authorities where the well site is
3proposed to be located. No permit shall be issued unless
4consent is secured and filed with the permit application. In
5the event that an amended location is selected, the original
6permit shall not be valid unless a new certified consent is
7filed for the amended location.
8    (d) The hydraulic fracturing permit application shall be
9accompanied by a bond as required by subsection (a) of Section
101-65 of this Act.
11    (e) Each application for a permit under this Act shall
12include payment of a non-refundable fee of $13,500. Of this
13fee, $11,000 shall be deposited into the Oil and Gas Resource
14Management Fund for the Department to use to administer and
15enforce this Act and otherwise support the operations and
16programs of the Office of Oil and Gas Resource Management. The
17remaining $2,500 shall be deposited into the Illinois Clean
18Water Fund for the Agency to use to carry out its functions
19under this Act. The Department shall not initiate its review of
20the permit application until the applicable fee under this
21subsection (e) has been submitted to and received by the
23    (f) Each application submitted under this Act shall be
24signed, under the penalty of perjury, by the applicant or the
25applicant's designee who has been vested with the authority to
26act on behalf of the applicant and has direct knowledge of the



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1information contained in the application and its attachments.
2Any person signing an application shall also sign an affidavit
3with the following certification:
4        "I certify, under penalty of perjury as provided by law
5    and under penalty of refusal, suspension, or revocation of
6    a high volume horizontal hydraulic fracturing permit, that
7    this application and all attachments are true, accurate,
8    and complete to the best of my knowledge.".
9    (g) The permit application shall be submitted to the
10Department in both electronic and hard copy format. The
11electronic format shall be searchable.
12    (h) The application for a high volume horizontal hydraulic
13fracturing permit may be submitted as a combined permit
14application with the operator's application to drill on a form
15as the Department shall prescribe. The combined application
16must include the information required in this Section. If the
17operator elects to submit a combined permit application,
18information required by this Section that is duplicative of
19information required for an application to drill is only
20required to be provided once as part of the combined
21application. The submission of a combined permit application
22under this subsection shall not be interpreted to relieve the
23applicant or the Department from complying with the
24requirements of this Act or the Illinois Oil and Gas Act.
25    (i) Upon receipt of a permit application, the Department
26shall have no more than 60 calendar days from the date it



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1receives the permit application to approve, with any conditions
2the Department may find necessary, or reject the application
3for the high volume horizontal hydraulic fracturing permit. The
4applicant may waive, in writing, the 60-day deadline upon its
5own initiative or in response to a request by the Department.
6    (j) If at any time during the review period the Department
7determines that the permit application is not complete under
8this Act, does not meet the requirements of this Section, or
9requires additional information, the Department shall notify
10the applicant in writing of the application's deficiencies and
11allow the applicant to correct the deficiencies and provide the
12Department any information requested to complete the
13application. If the applicant fails to provide adequate
14supplemental information within the review period, the
15Department may reject the application.
16(Source: P.A. 98-22, eff. 6-17-13; 98-756, eff. 7-16-14;
1799-139, eff. 7-24-15.)
18    (225 ILCS 732/1-90 new)
19    Sec. 1-90. Mineral interest owner consent.
20    (a) Notwithstanding any other provision of statutory or
21common law, a person shall not conduct hydraulic fracturing
22operations or remove minerals as a result of any means
23regulated by this Act, including, but not limited to,
24horizontal wells, without the express, written consent of each
25owner of a mineral interest affected by the hydraulic



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1fracturing operations or removal of minerals in the conduct of
2the hydraulic fracturing operations.
3    (b) Any person who violates or refuses to comply with any
4of the provisions of this Section shall be subject to the
5provisions of Sections 8a and 19.1 of the Illinois Oil and Gas
7    (c) If the Department finds that a person or permittee has
8violated this Section, in addition to permanent cessation of
9the operations in violation of this Section and any civil or
10other penalty assessed by the Department, the person or
11permittee shall be ordered to pay treble the full market value
12of the mineral resource extracted in violation of this Act to
13the owner of the mineral interest.
14    (d) Nothing in this Section shall be construed to prohibit
15any owner of a mineral interest from initiating a civil cause
16of action in any court with jurisdiction for an alleged
17violation of this Section for compensatory or punitive damages,
18or both.