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Public Act 099-0139 | ||||
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AN ACT concerning Finance.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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Section 5. The Department of Natural Resources Act is | ||||
amended by changing Section 10-5 as follows:
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(20 ILCS 801/10-5)
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Sec. 10-5. Office of Mines and Minerals.
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(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.
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(b) The Office of Mines and Minerals shall
have a Director | ||||
and a Manager.
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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
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examiner issued by the Illinois Mining Board.
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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.
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(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.)
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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)
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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:
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(1) the name and address of the registrant and any | ||
parent, subsidiary, or affiliate thereof;
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(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
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(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.
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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.
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(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:
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(1) the name and address of the applicant and any | ||
parent, subsidiary, or affiliate thereof;
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(2) the proposed well name and address and legal | ||
description of the well site and its unit area;
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(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;
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(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:
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(A) the approximate total depth to which the well | ||
is to be drilled or deepened;
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(B) the proposed angle and direction of the well;
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(C) the actual depth or the approximate depth at | ||
which the well to be drilled deviates from vertical;
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(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
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(E) the estimated length and direction of the | ||
proposed horizontal lateral or wellbore;
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(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;
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(6) a detailed description of the proposed high volume | ||
horizontal hydraulic fracturing operations, including, but | ||
not limited to, the following:
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(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;
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(B) the anticipated surface treating pressure | ||
range;
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(C) the maximum anticipated injection treating | ||
pressure;
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(D) the estimated or calculated fracture pressure | ||
of the producing and confining zones; and
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(E) the planned depth of all proposed perforations | ||
or depth to the top of the open hole section;
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(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;
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(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:
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(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;
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(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;
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(C) each chemical anticipated to be intentionally | ||
added to the base fluid, including for each chemical, | ||
the Chemical Abstracts Service number, if applicable; | ||
and
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(D) the anticipated concentration in the base | ||
fluid, in percent by mass, of each chemical to be | ||
intentionally added to the base fluid;
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(9) a certification of compliance with the Water Use | ||
Act of 1983 and applicable regional water supply plans;
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(10) a fresh water withdrawal and management plan that | ||
shall include the following information:
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(A) the source of the water, such as surface or | ||
groundwater, anticipated to be used for water | ||
withdrawals, and the anticipated withdrawal location;
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(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;
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(D) the methods to be used to minimize water | ||
withdrawals as much as feasible; and
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(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;
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(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;
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(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;
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(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;
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(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;
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(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;
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(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;
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(17) drafts of the specific public notice and general | ||
public notice as required by Section 1-40 of this Act;
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(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;
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(19) proof of insurance to cover injuries, damages, or | ||
loss related to pollution in the amount of at least |
$5,000,000; and
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(20) any other relevant information which the | ||
Department may, by rule, require.
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(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.
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(d) The hydraulic fracturing permit application shall be | ||
accompanied by a bond as required by subsection (a) of Section | ||
1-65 of this Act.
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(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.
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(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:
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"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.".
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(g) The permit application shall be submitted to the | ||
Department in both electronic and hard copy format. The | ||
electronic format shall be searchable.
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(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.
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(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.
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(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.
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(Source: P.A. 98-22, eff. 6-17-13; 98-756, eff. 7-16-14.) |
(225 ILCS 732/1-65)
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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.
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(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.
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(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.
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(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.
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(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.
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(Source: P.A. 98-22, eff. 6-17-13.) | ||
(225 ILCS 732/1-135)
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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.
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(Source: P.A. 98-22, eff. 6-17-13.)
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Section 99. Effective date. This Act takes effect upon | ||
becoming law.
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