Current through all regulations passed and filed through September 16, 2024
(A)
A person may only
store, recycle, treat, process or dispose of brine and other waste substances
at an oil and gas waste facility in accordance with Chapter 1509. of the
Revised Code and rules adopted under it.
(B)
No person may
allow brine or other waste substances at an oil and gas waste facility to
migrate into an underground source of drinking water.
(C)
Not later than
one hundred eighty days after the effective date of this rule, a person
operating an oil and gas waste facility under a chief's order must
either:
(1)
Obtain a permit in accordance with section
1509.22 of the Revised Code and
rule 1501:9-4-04 of the Administrative Code, obtain insurance pursuant to
paragraph (F) of this rule, and obtain financial assurance pursuant to
paragraph (G) of this rule; or
(2)
Immediately
suspend operations and begin reclamation procedures pursuant to rule
1501:9-4-07 of the Administrative Code.
(D)
Any information
deemed proprietary or confidential by the applicant must be clearly marked as
such on the applicable document or form and the proprietary or confidential
information supplied on a separate page before submission of the information to
the division. If a person requests the division to release the information
pursuant to Chapter 149. of the Revised Code, the division will notify the
applicant that the information will be provided pursuant to Chapter 149. of the
Revised Code and and provide the information, unless the applicant obtains a
court order preventing the division's release of the
information.
(E)
Any private entity submitting an infrastructure record,
as defined by division (A) of section
149.433 of the Revised Code, to
the division may include a written statement substantially similar to the
following: "This information is voluntarily submitted to a public office in
expectation of protection from disclosure as provided by section
149.433 of the Revised Code." As
provided in section 149.433 of the Revised code, an
infrastructure record accompanied by such a statement is exempt from release in
response to a public records request for a period of twenty-five years after
its creation.
(F)
Insurance
(1)
Prior to construction and operation of an oil and gas
waste facility, a person must obtain a liability insurance policy in an amount
not less than two million dollars bodily injury coverage for each occurrence
and two million dollars property damage coverage for each occurrence to pay
damages for injury to persons or property caused by the storage, recycling,
treatment, processing, or disposal of brine and other waste
substances.
(2)
A person shall provide proof of liability insurance
coverage to the chief of the division of oil and gas resources management upon
request. Upon failure of the person to provide that proof when requested, the
chief may order the suspension of the facility until the person provides proof
of the required insurance coverage.
(3)
The insurance
policy required by paragraph (F) of this rule shall be maintained in effect
during the construction and operation of the oil and gas waste facility. The
policy or policies providing the coverage shall require the insurance company
to give notice to the chief if the policy or policies lapse for any reason.
Upon such termination of the policy, the chief may order the suspension of
operations of the oil and gas waste facility until proper insurance coverage is
obtained.
(G)
Financial assurance
(1)
A person, prior
to construction and operation of an oil and gas waste facility, shall execute
and file with the division financial assurance conditioned on compliance with
Chapter 1509 of the Revised Code, Division 1501:9 of the Administrative Code,
and all rules and orders issued pursuant to either. The financial assurance
must be payable to the state as oblige and calculated by either of the
following:
(a)
Multiplying the permitted total nominal amount of storage, processing, and
treatment volume by ten dollars for each barrel of liquid and three hundred
twenty-five dollars for each cubic yard of solid waste; or
(b)
An amount
determined by performing a closure cost study that meets the requirements
established in rule 1501:9-4-07 of the Administrative Code. The study shall be
based on a third party conducting the post-closure activities. The chief may
review, accept, or require revisions to the closure cost study. If a study is
used to determine financial assurance, the study shall be performed every five
years, and if the amount changes, new financial assurance
obtained.
(2)
If the oil and gas waste facility is amended, new
financial assurance calculated according to paragraph (G)(1)(a) of this rule
shall be obtained at least ninety calendar days after verification of integrity
of the amended oil and gas waste facility.
A surface facility as defined in rule
1501:9-3-01 of the
Administrative Code does not have to obtain financial assurance under this
rule.
(3)
If certificates of deposit are deposited with the chief
instead of a surety bond, the chief will require the bank that issued any such
certificate to pledge securities of a cash value equal to the amount of the
certificate that is in excess of the amount insured by any of the agencies and
instrumentalities created under the "Federal Deposit Insurance Act," 64 Stat.
873 (1950),
12 U.S.C.
1811, as amended, and regulations adopted
under it, including at least the federal deposit insurance corporation. The
securities shall be security for the repayment of the certificate of
deposit.
(4)
Forfeiture criteria and amount. The chief will forfeit
the total amount of a financial assurance when the chief makes a finding of
fact that the person who is required to file financial assurance has failed to
comply with any of the following:
(a)
A final non-appealable chief's order
issued;
(b)
A compliance agreement entered into under section
1509.04 of the Revised Code;
and
(c)
The provisions of rule 1501:9-4-07 of the
Administrative Code.
(5)
Forfeiture
procedures.
(a)
When financial assurance is to be forfeited, the chief will
make a finding of fact and:
(i)
Set forth the violations giving rise to the order;
and
(ii)
Declare the financial assurance is
forfeited.
(b)
If the financial assurance filed with the division is
in the form of a surety bond, irrevocable letter of credit, or certificate of
deposit, the chief shall also issue a letter to the surety company or bank
involved that informs the surety company or bank of its rights under paragraphs
(G) of this rule.
(c)
If the financial assurance filed with the division
pursuant to section 1509.07 of the Revised Code is
in the form of cash, upon forfeiture, the chief will declare the cash
forfeited.
(6)
Options for the surety company or bank.
(a)
Within thirty
days after it receives the letter described in paragraph (G)(5) of this rule,
each surety company or bank shall notify the chief that it will do one of the
following:
(i)
Not correct the violation or violations resulting in the issuance of the bond
forfeiture findings of fact and shall make payment for the full amount of the
financial assurance; or
(ii)
Correct the violation or violations set forth in the
findings of fact, pursuant to a plan the surety company or the bank shall
submit to the chief, that includes a reasonable time within which the surety
company or the bank will complete the required work.
(b)
The rights of the
surety company or bank to correct the violation or violations shall terminate
if the surety company or bank fails to do any of the following:
(i)
Notify the chief
within thirty days after receipt of the letter that it will or will not correct
the violation;
(ii)
Submit a timetable at the same time it notifies the
chief that it will perform the required work; or
(iii)
Commence,
continue, or complete the required work in a manner and in accordance with the
plan submitted under paragraph (G)(6)(b) of this rule and the provisions of
Chapter 1509. of the Revised Code.
(c)
If the surety
company or bank fails to comply paragraph (G)(6) of this rule, the chief will
provide written notice to the surety company or bank that terminates the rights
of the surety company or bank and demands payment from the surety company or
bank for the entire amount of the financial assurance filed with the
division.
(7)
All moneys collected because of forfeitures of
financial assurance as provided in this rule will be deposited in the state
treasury to the credit of the oil and gas well fund created in section
1509.02 of the Revised Code and
will be used to restore the location for which the financial assurance was
provided to the condition that existed prior to the issuance of the permit or
order pursuant to division (B)(2) (a) of section
1509.22 of the Revised Code. The
chief is not obligated to spend more than the value of the forfeited bond or
other financial assurance insurance to restore an abandoned
site.
