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Amended Oil and Gas Rules
Comments Requested on Draft Rules
The Division of Oil and Gas Resources Management is requesting comments on proposed amendments to the existing rules under Ohio Adminstrative Code 1501, which have been drafted pursuant to Senate Bill 165, effective June 30, 2010 and to complete the required five-year review of these rules. These changes are in addition to the well construction rules that were recently put out for comment.
Five-Year Rule Review - What is it?
The Ohio Revised Code (ORC) is the codified law of the state, laws created by the Ohio legislature. The Ohio Administrative Code (OAC) is a compilation of rules, policies, and standards adopted by state agencies in support of those laws.
Rule-making agencies, such as ODNR, are required by law to fully review their rules within the Ohio Administrative Code every five years. Among other things, this "housekeeping" process is to ensure that the rules do not conflict with what is written in Ohio Law.
With the passage of Senate Bill 165 in 2010, a number of revisions to the Ohio Revised Code (ORC) superseded rules in the Ohio Administrative Code (OAC). For example, there are now specific references in ORC 1509 that used to be in OAC 1501 and/or changes were made in ORC 1509 to items previously referenced in OAC 1501.
No significant changes are being proposed by the ODNR Division of Oil and Gas Resources Management, only deletion of outdated or obsolete rules, or rules now covered under the Ohio Revised Code.
We encourage you to read through the Amended Rule package; in most cases, we have included an explanation of why language is being revised or deleted. To ensure a better understanding of the rule changes, we have sampled several rule changes below.
Wastewater Disposal
ORC 1501:9-1-02 Permits (A) (3) Plan for Disposal of Water and other Waste Substances
Although the Division is proposing to eliminate a reference to an obsolete form from the rules, no laws regarding wastewater disposal have been changed. Rather, the requirement to use this form was removed in the 1990s; the rule should have been changed in previous reviews.
Ohio Law: ORC 1509 and OAC 1501 provide for our authority to oversee the disposal of waste substances and clearly set the parameters required of the industry for proper disposal.
Surety Bond
OAC 1501:9-1-03 (F)
The ORC 1509 and OAC 1501 provide for the submittal of Financial Statements to meet the bonding requirements. The OAC sets the information that must be submitted by the well owner if they are filing a finacial statement with the Division. Under the five-year rule review, we have eliminated the reference to a well owner providing an appraisal or the County Auditors tax appraised value for any real estate listed as an asset on the financial statement. We have not been requiring that information for some time since we started requiring the financial statements to be signed off by a certified public accountant. Elimination of this filing places no burden on holders of real estate in Ohio.
Safe Distances
OAC 1501:9-1-04(5), 1501:9-9-05
The Division has not reduced any setback requirements. In fact, SB 165 increased safety setback distances for wells drilled in urban areas. We are eliminating the rule references which are now spcifically in Ohio Revised Code per changes made under SB 165.
Permit Timeframe Limits
OAC 1501:9-1-02(I), 1501:9-3-06(I), 1501:9-5-05(I), 1501:9-7-07(L), 1501:9-11-02(E)
Senate Bill 165, effective June 30, 2010, changed the timeframes for when permits to drill and plug wells were valid. In urban areas (townships with a population exceeding 5,000 or municipal corporations-towns, villages, cities) permits are valid for 12 months from date of issue. In non-urban areas, permits are valid once issued for 24 months. Because permit timeframes are now in Ohio law, under the five-year rule review, we are deleting timeframe references from the rules.
We appreciate you taking the time to better understand the Five-year Rule Review process. If you have any other questions please submit them to minerals@dnr.state.oh.us.
Comments on the draft proposed amendments, rescissions and no-change rules are to be submitted to minerals@dnr.state.oh.us by December 23, 2011.
Division staff will review all comments and make necessary changes in January 2012. The formal rule filing with the Joint Committee on Agency Rule Review (JCARR) is expected by the spring of 2012.
Please note that in the attached PDF document, words that are blue and underlined are proposed new rule language, and words that are red and overstruck like this are proposed to be removed. Words in grayscale like this show that part of the currently effective rule is being moved to a new paragraph; in their new location they are wirtten in bold print like this.
 Draft Oil and Gas Rule Amendments, Rescissions, and No-Change Rules (.pdf)
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