Chapter 1501:9-1 Oil Well Drilling

(A) Definitions:

(1) “Access road” means any road used as primary ingress and egress to the wellhead, tank battery, and associated equipment used in the production of a well.

(2) “Applicant” or “person” means a natural person, corporation, association, partnership, receiver, trustee, executor, administrator, guardian, fiduciary, or other representative of any kind, and includes any government or a political subdivision or agency thereof. The masculine gender, in referring to a person, includes the feminine and the neuter genders.

(3) “Authorized representative “means any contractor, sub-contactor or person directed by an owner or owner holding a permit, to complete any aspect of well site construction, drilling, production, and restoration.

(4) “Best Management Practices (BMP’s) – Oil and Gas Well Site Construction Manual” means practices, procedures and structures used to minimize accelerated erosion from oil and gas well site construction and well site restoration outlined in the manual, dated April 30, 2005 can be located at http://www.dnr.state.oh.us/mineral/oil/index.html or by contacting the division of mineral resources management.

(5) “BMP’s Pre-drilling Water Sampling Manual” means methods for ground water sampling from private or public supplies using practices, processes and procedures outlined in the manual, dated April 30, 2005 can be located at http://www.dnr.state.oh.us/mineral/oil/index.html or by contacting the division of mineral resources management..

(6) “Cage” means a wire, wood, metal or similar material surrounding a wellhead.

(7) “Chief” means chief, division of mineral resources management.

(8) “Condensate” means liquid hydrocarbons that were originally in the gaseous phase in the reservoir.

(9) “Contractor” means any third party engaged by an owner to conduct drilling, producing, and other operations.

(10) “Direct notification” means, person to person or phone contact between a well owner, owner holding a permit or their authorized representative and a division inspector and/or division field office staff. Voice mail messages are not considered direct notification.

(11) “Division” means division of mineral resources management, department of natural resources

(12) “Drilling unit” means the minimum acreage on which one well may be drilled, but does not apply to a well for injecting gas into or removing gas from a gas storage reservoir.

(13) “Field” means the general area underlaid by one or more pools.

(14) “Gas” means all natural gas and all other fluid hydrocarbons not defined above as oil, including condensate.

(15) “GPS” (Global Positioning System) is a global satellite-based system for determining precise location on Earth.

(16) “Inhabited structure” means any inhabited private dwelling house and any public building which may be used as a place of resort, assembly, education, entertainment, lodging, trade, manufacture, repair, storage, traffic, or occupancy by the public.

(17) “Inspector” means the person who has been designated by the chief under section 1509.03 of the Revised Code, to administer and enforce provisions of Chapter 1509. of the Revised Code or rules thereunder.

(18) “Manager” means the operator, whether the owner or not, of a well or wells.

(19) “Map” means a graphic representation of the location and size of the existing or proposed objects it is made to represent, accurately drawn to a scale no smaller than four hundred feet to the inch.

(20) “Oil” means crude petroleum oil and all other hydrocarbons, regardless of gravity, that are produced in liquid form by ordinary production methods, but does not include liquid hydrocarbons that were originally in a gaseous phase in the reservoir.

(21) “Oil and gas” means oil or gas or both. The use of the plural includes the singular, and the use of the singular includes the plural.

(22) “Owner” means the person who has the right to drill on a tract or drilling unit and to drill into and produce from a pool and to appropriate the oil or gas that he produces there ffrom either for himself or for others.

(23) “Pool” means an underground reservoir containing a common accumulation of oil or gas, or both, but does not include a gas storage reservoir. Each zone of a geological structure and each zone of a geological feature that is completely separated from any other zone in the same structure or feature may contain a separate pool.

(24) “Producer” means the owner of a well capable of or producing oil or gas or both.

(25) “Protection of correlative rights” means administration and enforcement of these rules and regulations by the chief in such a manner as to afford reasonable opportunity to every person entitled thereto to recover and receive the oil and gas in and under his tract or tracts, or the equivalent thereof, without having to drill unnecessary wells or to incur other unnecessary expense.

(26) “Spudding” means to begin drilling, to start the hole.

(27) “Subject tract or drilling unit” means a tract upon which a person proposes to drill, reopen, deepen, plug back, or re-work a well for producing oil and natural gas.

(28) “Tank battery” means any combination of oil collection tanks, brine collection tanks, and associated equipment within a containment dike.

(29) “Tract” means a single, individually taxed parcel of land appearing on the tax list.

(30) “Urbanized area” means an area where a well or production facilities of a well are located within a municipal corporation or within a township that has an unincorporated population of more than five thousand in the most recent federal decennial census prior to the issuance of the permit for the well or production facilities.

(31) “Vault” means a structure normally made of concrete surrounding the wellhead, recessed into the ground, all or portion that is placed below ground surfaces.

(32) “Waste” means and includes:

(a) Physical waste, such as the term is understood generally in the oil and gas industry;

(b) Inefficient, excessive, or improper use, or the unnecessary dissipation of reservoir energy;

(c) Inefficient storing of oil or gas;

(d) Locating, drilling, equipping, operating, or producing an oil or gas well in a manner that reduces or tends to reduce the quantity of oil or gas ultimately recoverable under prudent and proper operation from the pool into which it is drilled, or that causes or tends to cause unnecessary or excessive surface loss or destruction of oil or gas;

(e) Other underground or surface waste in the production, transportation, or storage of oil, gas, or condensate, however caused.

(33) “Well” means any borehole, whether drilled or bored, for stratigraphic exploration or for the production, extraction or injection of any gas or liquid mineral, excluding potable water to be used as such, but including natural or artificial brines and oil field waters, sewage, and any liquid used in or resulting from any process of industry, manufacture, trade, business, or agriculture.

(34) “Well site construction” means any activity by an owner holding a permit, well owner or the owners authorized representative to build the access roads, prepare the drill site location for the drilling rig or tank battery and associated equipment and restoration of the well site.

(B) Rules for giving public notice – adoption, amendment, or rescission of rules.

(1) Public notice of hearings to be conducted by the division of mineral resources management, department of natural resources, shall be published with the Register of Ohio.

(2) At least thirty days notice of the time and place of a public hearing shall be given by said notice which shall state the division’s intention to consider adopting, amending, or rescinding a rule; a synopsis or the full text of the proposed rule, amendment, or rule to be rescinded or a general statement of the subject matter to which such proposed rule relates; and the date, time, and place of the hearing on said proposed action.

(C) Forms:

The division shall prescribe forms required under the rules and regulations herein and, upon request, furnish such forms to any interested person requiring use of same.

Replaces: 1501:9-9-01

Effective: 08/11/2005

R.C. 119.032 review dates: 05/05/2005 and 08/11/2010

Promulgated Under: 119.03

Statutory Authority: 1509.01, 1509.03, 1509.23

Rule Amplifies: 1509.01, 1509.02, 1509.03, 1509.05, 1509.06, 1509.23

Prior Effective Dates: 11/1/67, 1/31/83, 4/15/04

(A) Application for permit — supplementary statutory requirements:

(1) The date of application;

(2) Designation of the well by name and number;

(3) The plan for disposal of water and other waste substances resulting from, obtained, or produced in connection with exploration, drilling, or production of oil or gas. The plan for disposal of salt water shall include identification of any disposal well or disposal wells to be used. A statement that one of the named disposal wells on the application shall be used, is sufficient. Where the applicant finds that the disposal well to be used is different from that indicated on the permit, the applicant shall so notify the division immediately in writing. The plan for disposal may include such other methods as are approved by the chief. Such plan shall include the name of the person or company disposing of the salt water and the ultimate location of its disposal. Any change in the plan for disposal shall be timely submitted to the chief.

(4) An affidavit that the applicant is the owner as defined in section 1509.01 of the Revised Code.

(5) A map showing:

(a) The subject tract of land or drilling unit upon which the well is to be drilled and property lines with surface and mineral owner name(s) within.

(b) The location of the proposed well on the subject tract of land or drilling unit established by a field survey showing the distances in feet from the proposed well site to the boundary lines of the subject tract or drilling unit, and to the nearest permanent geographic subdivision boundaries.

The proposed well location also shall be designated by plane coordinates as provided by Chapter 157. of the Revised Code (Ohio coordinate system. Indicate if the coordinates are NAD 27 or NAD 83). Coordinates may be established by map scale to the nearest fifty (50) feet; or by GPS.

(c) Location of drilling or producing wells, which are within the distances required according to depth of drilling as set forth in rule 1501:9-1-04 of the Administrative Code, and a showing of the distances between such drilling or producing wells and the proposed well;

(d) The location of all buildings, public roads, railroads and streams within two hundred (200) feet of the proposed well site, and their distances from the proposed well site.

(e) A title block to the map certifying the above information and including the applicants name, well name, county, civil township, permanent geographic subdivisions (section, lot and/or tract) and surface elevation for the well location, USGS quadrangle name, date map prepared, name of surveyor preparing the map and phone number, and map scale

(f) If the proposed well is to be in an urbanized area, the map shall include the name of the urbanized area in addition to the original civil township name;

An additional color map (three copies) based on aerial photography, where available, at a scale of 1 inch to 100 feet (1” :100’) or 1 inch to 200 feet (1” :200’) showing the location of the tank battery, access road, and gas sales line and a five hundred (500) foot radius around the well location;

As an overlay on the base aerial map, include three additional copies of the map including topographic contours (where available).

(B) Procedure for review of application for permit:

(1) All complete applications shall be date-stamped upon receipt by the division. Within twenty-one days of filing of the application the chief shall either issue the permit or notify the applicant of objections to the application.

(a) Notice of objections by the division to the application may be given in person, by telephone or by mail to the address on the application at the discretion of the division.

(b) Any record of telephoning or mailing the notice, made in the normal course of business by the division, shall constitute notice of objection to the applicant.

(c) Applicants will be given a reasonable opportunity to correct any objections to the application and to request an informal hearing with the chief. Except as otherwise required, amendments to applications need not be separately signed by the applicant.

(d) If an application does not contain required information, the division shall notify the applicant of the omitted data by mail or telephone. If the omissions are substantial, the division may return the application by mail with the omitted items indicated.

(2) When the chief finds that efforts to cure objections to an application will be unavailing and that the application is not in accordance with the requirements of Chapter 1509. of the Revised Code and applicable rules, or that the applicant failed to respond to objections within thirty days of notice, the chief shall issue an order denying the application for permit.

(a) The applicant has a right to an informal meeting with the chief within fifteen days after such order is issued. If, as a result of this meeting, the chief believes the application meets, or if the application is amended to meet, the requirements of Chapter 1509. of the Revised Code and applicable rules, he shall within ten days vacate or modify his order as appropriate.

(b) The applicant need not exercise his right to an informal meeting with the chief, but may treat the order issued as final and appealable pursuant to Chapter 1509. of the Revised Code.

(C) Notification:

Each drilling permit issued in an urbanized area will be conditioned on the division inspector and or the respective division regional office receiving direct notification a minimum of 48 hours prior to:

(1) Commencement of site construction;

(2) Pit construction and closure;

(3) Spudding of the well;

(4) Placement of the surface casing;

A 24-hour (or less) direct notification may be approved if prior communications have been initiated with the division inspector and/or respective regional office.

(D) Commencement:

No well site construction shall commence in an urbanized area until a permit is issued, received by the applicant and is available on-site unless the chief waives this requirement.

(1) Site construction shall comply with best management practices (BMPs) for oil and gas well site construction manual, dated April 30, 2005 that can be located at http://www.dnr.state.oh.us/mineral/oil/index.html or by contacting the division of mineral resources management, as provided by the chief. Site clearing and surface affectment shall be minimized.

(E) For wells permitted after September 15, 2004 in urbanized areas or where there is no reasonable emergency response access to the wellhead or tank battery at the ingress point to the access road, an apron of durable material shall be placed. The apron shall be sufficient in width and length to enable unobstructed access to the access road.

(1) The access road shall be constructed and maintained in a manner to permit the ingress and egress for fire and emergency response.

(2) Mud and debris deposited on public roads from the well site during drilling, production, and restoration operations shall be immediately removed by the well owner or their authorized representative.

(3) Where the well head/tank battery is in excess of one hundred fifty (150) feet from the ingress point to the access road, the access road to the well head/tank battery shall be reasonably passable by any equipment expected to access the well head/tank battery. It is recommended that a durable surface be maintained on the lease road. The durable surface may include, gravel, crushed stone, crushed concrete, slag (when approved by the chief), crushed brick, asphalt, or concrete.

(4) Where the access road is in excess of one hundred fifty (150) feet in length, turnaround areas shall be located as practical based on the existing site conditions (topography, land use, forest cover, and natural drainage – perennial/intermittent streams). Turnarounds located prior to any natural drainage area not having a constructed crossing sufficient to handle equipment expected to access the site may be needed.

(5) All equipment and vehicles used in the site construction, drilling, production and restoration shall not be parked on public roads without the approval of the local road authority.

(F) Water Sampling

The well owner shall sample all water wells within three hundred (300) feet of the proposed well location in urbanized areas prior to drilling under the guidelines provided in the divisions BMPs for pre-drilling water sampling manual, dated April 30, 2005 that can be located at http://www.dnr.state.oh.us/mineral/oil/index.html or by contacting the division of mineral resources management. The chief may require modification of this distance if determined necessary to protect water supplies or site conditions may warrant.

(G) Permit not transferable:

A permit issued pursuant to these rules and regulations shall not be transferable. It may be reissued as a new permit to a successor owner.

(H) Well deviation:

The maximum point at which a well penetrates the producing formation shall not vary unreasonably from the vertical drawn from the center of the hole at the surface, with the exception of approved directional drilling. Such approval must be in writing from the chief.

(I) Expiration of permit:

Once a permit to drill has been issued pursuant to this rule, actual drilling of the well authorized by the permit shall be commenced within twelve months of the date of issuance of such permit or the permit shall expire; if drilling is commenced but not completed within said twelve month period, drilling shall be continued with due diligence following the twelve month period or the permit shall expire.

(J) Revising subject tract or drilling unit:

A subject tract or drilling unit of a well or proposed well, previously approved by the division may be revised by the owner with the filing of a revised map complying with this rule and section 1509.06 of the Revised Code and a non-refundable fifty dollar fee. One fee is required if revising a subject tract with multiple wells; however, an original revised map is required for each well within the subject tract.

(K) Revising location:

The location of a proposed well may be changed only if the owner submits an application, non-refundable two hundred fifty dollar fee and revised map complying with this rule, section 1509.06 and section 1509.09 of the Revised Code.

(L) Post drilling map:

The post drilling map required by conditions of the permit must be accompanied by a non-refundable fifty dollar fee.

Effective: 08/11/2005

R.C. 119.032 review dates: 05/05/2005 and 08/11/2010

Promulgated Under: 119.03

Statutory Authority: 1509.03, 1509.06, 1509.23

Rule Amplifies: 1509.02, 1509.03, 1509.05, 1509.06, 1509.09, 1509.23

Prior Effective Dates: 1/22/75, 1/31/83, 8/9/93, 9/16/03

(A) Amount:

The surety bond provided for in section 1509.07 of the Revised Code shall be executed by a surety company authorized to do business in the state of Ohio and shall be in the following amount:

For an individual bond covering a single well, five thousand dollars; for a blanket bond covering all such wells operated by the principal, fifteen thousand dollars;

(B) Delinquent restoration.

If the oil or gas well owner, permittee, or his agent fails to complete the initial restoration as required under division (A) of section 1509.072 of the Revised Code, the chief, prior to issuing a bond forfeiture order for such failure, shall issue to such person a written notice of violation. The notice of violation shall:

(1) Set forth with reasonable specificity:

(a) The nature of the failure;

(b) The remedial action required;

(c) A reasonable time for completion of the restoration; and

(d) A description of the area to be restored.

(2) State that if the notice is not compiled with within the time allowed in the notice and any extensions given for good cause, the chief will forfeit the total amount of the performance bond.

(C) Forfeiture criteria and amount.

The chief shall forfeit the total amount of the performance bond when he or she finds that the oil or gas well owner or permittee has:

(1) Failed to comply with a notice of violation issued under paragraph (B) of this rule;

(2) Failed to comply with the final restoration requirements of division (B) of section 1509.072 of the Revised Code;

(3) Failed to comply with the plugging requirements of section 1509.12 of the Revised Code, the permit provisions of section 1509.13 of the Revised Code or rules adopted thereunder.

(D) Forfeiture procedures.

When performance bond is to be forfeited, the chief shall issue an order to the owner or permittee, which order shall be referred to in this rule as the bond forfeiture order. The bond forfeiture order shall:

(1) Set forth the violation giving rise to the order;

(2) Declare that the entire amount of the bond is forfeited;

(3) If the performance bond filed with the division is supported by or in the form of cash or negotiable certificates of deposit, declare the cash or certificates property of the state;

(4) If the performance bond filed with the division is in the form of a surety bond, the chief shall also issue a bond forfeiture order to the surety involved and, in addition to the requirements of paragraphs (C)(1) and (C)(2) of this rule, the order shall also inform the surety of its rights and the extent of its obligations and liability.

(E) Options for the surety.

(1) Within thirty days after it receives a bond forfeiture order, each surety shall notify the chief that it will:

(a) Not correct the violation or violations resulting in the issuance of the bond forfeiture order and shall make payment for the full amount of the bond; or,

(b) Correct the violation or violations and shall submit to the chief a plan, including a time frame for performance for accomplishing the required work; or,

(c) Pay to the treasurer of the state that amount of money which it would cost the state of Ohio as determined by the chief to complete the required work.

(2) The rights of the surety to correct the violation or violations resulting in the issuance of the bond forfeiture order shall be terminated if the surety fails to:

(a) Notify the chief within thirty days after receipt of the bond forfeiture order that it will or will not correct the violation;

(b) Submit a timetable at the same time it notifies the chief that it will perform the required work; or,

(c) Commence, continue, or complete the required work in a manner and in accordance with its timetable and the provisions of Chapter 1509. of the Revised Code.

(3) When the chief determines that the rights of a surety shall be terminated, the chief shall issue an order terminating the rights of the surety and demanding payment from the surety for the entire amount of performance bond filed with the chief by the surety.

(F) Financial statements:

Sworn financial statements may be accepted in lieu of a surety bond, certificate of deposit, or cash bond only for owners classified as exempt domestic well owners or for non-domestic well owners for whom the chief has accepted a sworn financial statement prior to January 1, 1993 and who are not in material and substantial violation of Chapter 1509. of the Revised Code. Additionally, the chief may accept new financial statements for exempt domestic well owners and non-domestic well owners if an irrevocable letter of credit on a form provided by the division for the bond amount is provided from an approved financial institution along with the financial statement required in (F)(1)(d) or (F)(2)(c) or by providing a copy of a financial statement submitted to the financial institution issuing the letter of credit. The chief will not accept new financial statements to release surety bonds, certificates of deposit or cash bonds previously filed with the division.

(1) Exempt domestic well owners:

(a) New exempt domestic well owners filing a financial statement will be limited to one well under the financial statement. New exempt doemstic well owners requesting the ownership of more than one well and existing exempt domestic well onwers requesting to receive additional wells must file a certificate of deposit, surety bond or cash bond in the amount required for the total number of wells to be owned.

(b) Exempt domestic well owners shall demonstrate financial responsibility at least once every two years under a schedule established by the division.

(c) To demonstrate financial responsibility, exempt domestic well owners must show sufficient assets and income to operate, maintain, and abandon the well.

(d) Exempt domestic well owners shall submit the following information to the division:

(i) Personal financial statement on a form provided by the division;

(ii) Statement of estimated well operating, maintenance, and abandonment expenses and source of funds to use in paying for these costs;

(iii) Other information required by the chief.

(iv) The exempt domestic well owner must attest to the material accuracy of the information provided. The forms shall prescribe penalties for submission of a false statement.

(2) Non-domestic well owners:

(a) Each owner with a previously approved financial statement shall demonstrate financial responsibility annually under a schedule established by the division.

(b) To demonstrate financial responsibility, and receive approval of the financial statement, each owner shall show the following:

(i) The owner must have a sufficient capital structure to show a net financial worth in Ohio of twice the required bonding amount;

(ii) The owner must not be found to be in material or substantial violation of section 1509.01, ET SEQ., of the Ohio Revised Code or section 1501:9-1-01, ET SEQ., of the Ohio Administrative Code during the preceding year;

(iii) The owner must be in compliance with sections 1509.10 and 1509.11 of the Revised Code.

(c) In order to verify the accuracy of the financial statement each owner shall submit the following information when requested by the chief of the Division of Mineral Resources Management:

(i) Income statement;

(ii) Balance sheet;

(iii) Copy of corporate franchise tax filing for previous year (if applicable);

(iv) List of fixed assets and their current market or book value;

(v) Copy of independent appraisal or copy of the county auditor’s assessed value of all real estate listed if the book value exceeds twenty-thousand dollars;

(vi) Proof of payment of oil and gas severance tax for previous year;

(vii) List of all producing wells including type of equipment and percentage of equipment owned;

(viii) Other information required by the chief; other information approved by the chief may be accepted in lieu of the above listed items.

(ix) Annual reports (reviews or audits) prepared in the normal course of business for an owner by a certified public accountant in accordance with generally accepted accounting principles will be accepted in lieu of the information required in (F)(2)(c)(i) through (v) if the signature page of the division’s financial statement form is submitted with the annual report and signed by the owner or authorized representative.

(d) Information preparation and standards:

(i) Financial statements submitted under (F)(2)(c) pursuant to this rule shall be compilations and prepared according to generally accepted accounting principles;

(ii) All financial statements must be sworn as to the material accuracy by the owner or authorized representative of the owner and a certified public accountant must certify that each financial statement was prepared in accordance with generally accepted accounting principals. Forms shall prescribe penalty for submission of a false statement;

(iii) If the owner is a corporation, only assets and liabilities of the corporation may be included on the financial statements.

(e) Evaluation:

(i) The division may use accepted financial industry tools to evaluate financial information;

(ii) The division may review inspection and enforcement data to determine if the owner has acted in an environmentally responsible manner.

(f) Penalties:

(i) Failure of an owner to demonstrate financial responsibility as required under (F)(1)(b) through (d), (F)(2)(a) and (F)(2)(b) and/or failure to supply all the information listed under (F)(2)(c) of this rule will result in an order by the chief requiring a surety bond, certificate of deposit, or cash bond in the amount of bond required. If the order is not complied with, the owner will receive an order by the chief requiring the plugging of all wells of the owner.

HISTORY: Eff 11-1-67; 9-1-80; 11-1-84; 7-16-93; 4-15-04

Rule promulgated under: RC 119.03

Rule authorized by: RC 1509.03

Rule amplifies: RC 1509.07

RC 119.032 review dates: 9/16/03, 1/27/04, 4/15/09

(A) General spacing rules:

(1) The division of mineral resources management shall not issue a permit for the drilling of a new well, the reopening of an existing well, or the deepening or plugging back of an existing well to a different pool for the production of oil and gas unless the proposed well location and spacing substantially conform to the requirements of this rule.

(2) This rule shall not apply to any wells drilled in areas under special order from the chief for pool spacing pursuant to section 1509.25 of the Revised Code. The chief shall grant an exception to the requirements of any special order from the chief for pool spacing pursuant to section 1509.25 of the Revised Code, if an applicant can demonstrate that such exception will protect correlative rights and/or promote conservation by permitting oil and/or gas to be produced which could not otherwise be produced.

(3) Upon receipt of an application by the division, the chief shall determine if the proposed total depth is reasonable to penetrate the objective geological formation or geological zone. If the chief determines that the proposed total depth is insufficient to penetrate the proposed geological formation or zone and that, because of the insufficient proposed total depth, the spacing and acreage requirements as per paragraph (C) of this rule are not fulfilled the permit shall be denied. In any event, no well shall be drilled deeper than the proposed total depth without prior permission from the chief.

(4) A permit shall not be issued unless the proposed well satisfies the acreage requirements for the greatest depth anticipated. If oil or gas is produced at a lesser depth than the geological formation or zone for which the permit was issued, the acreage requirements may be changed to conform with paragraph (C) of this rule by application to the chief.

(B) Scope:

Paragraph (C) of this rule, location of wells, shall apply to the drilling of a new well, the reopening of an existing well, and the deepening or plugging back of an existing well regardless of its depth or the producing geological horizon or zone except in areas under temporary minimum well spacing orders of the chief pursuant to paragraph (D) of this rule.

(C) Location of wells:

(1) No permit shall be issued to drill, deepen, reopen, or plug back a well for the production of oil and gas from pools from zero to one thousand feet in depth unless the proposed well is located:

(a) Upon a tract or drilling unit containing not less than one acre;

(b) Not less than two hundred (200) feet from any well drilling to, producing from, or capable of producing from the same pool;

(c) Not less than one hundred (100) feet from any boundary of the subject tract or drilling unit.

(2) No permit shall be issued to drill, deepen, reopen, or plug back a well for the production of oil or gas from pools from one thousand feet to two thousand feet in depth unless the proposed well is located:

(a) Upon a tract or drilling unit containing not less than ten acres;

(b) Not less than four hundred sixty (460) feet from any well drilling to, producing from, or capable of producing from the same pool;

(c) Not less than two hundred thirty (230) feet from any boundary of the subject tract or drilling unit.

(3) No permit shall be issued to drill, deepen, reopen, or plug back a well for the production of oil or gas from pools from two thousand to four thousand feet unless the proposed well is located:

(a) Upon a tract or drilling unit containing not less than twenty (20) acres;

(b) Not less than six (600) hundred feet from any well drilling to, producing from, or capable of producing from the same pool;

(c) Not less than three hundred (300) feet from any boundary of the subject tract or drilling unit.

(4) No permit shall be issued to drill, deepen, reopen, or plug back a well for the production of the oil or gas from pools from four thousand (4000) feet or deeper unless the proposed well is located:

(a) Upon a tract or drilling unit containing not less than forty (40) acres;

(b) Not less than one thousand (1000) feet from any well drilling to, producing from, or capable of producing from the same pool;

(c) Not less than five hundred (500) feet from any boundary of the subject tract or drilling unit.

(5) For new applications to drill wells in urbanized areas, the proposed wellhead location shall be no closer than seventy five (75) feet to any property not within the subject tract or drilling unit. Locating the wellhead closer than seventy five (75) feet to a property not within the subject tract or drilling unit may be approved by the chief if the owner and resident of the property in question, in writing, approves of the proposed wellhead location, or the chief waives the seventy five (75) foot requirement.

(6) Wells drilled, deepened, reopened, reworked, or plugged back for purposes other than the production of oil and gas will be considered as special situations, and each will be evaluated in accordance with the issues of conservation of natural resources and of safety. Decisions as to spacing of such wells will be determined after evaluation of the special circumstances. Rules may be promulgated for some specific types of these wells.

(D) Temporary minimum well spacing in the vicinity of discovery wells:

(1) For the purpose of orderly development of a pool until such time as ultimate spacing is determined, the chief on his own motion or upon consideration of an application by an owner in an affected area, and with approval of the technical advisory council, may order temporary well spacing for wells to be drilled, deepened, reopened or plugged back to a particular pool or field in an area in the vicinity of a discovery well. Such order shall contain the following:

(a) Description of the area covered by the order;

(b) Identification of the pool, field or horizons covered by the order;

(c) Minimum distance wells may be drilled from the tract or drilling unit boundaries;

(d) Minimum distance between wells;

(e) Minimum acreage for tracts or drilling units; and may contain other requirements deemed necessary by the chief to accomplish the purpose of paragraph (D) of this rule.

(2) An order of the chief for temporary minimum well spacing in the vicinity of a discovery well shall be effective on the date the order is made and shall continue in effect until it is either rescinded or amended by the chief or until such time as an order for special drilling unit requirements is made by the chief after hearing pursuant to section 1509.25 of the Revised Code.

(3) No well shall be drilled, deepened, reopened, or plugged back to or below the particular pool or field located in the area covered by an order of the chief under paragraph (D) of this rule unless the requirements of such order are met. Permits issued prior to the effective date of such order for wells to be located in the area and to or below the pool covered by such order which do not comply with the requirements of the order and where actual drilling operations have not commenced, shall be revoked.

(E) Offset wells – spacing exception:

(1) The chief shall grant an exception to the requirements of paragraph (C) of this rule to an applicant who demonstrates that the well proposed for production of oil or gas will be an offset to a well drilled or commenced before the effective date of paragraph (C) of this rule, and which is producing or may be capable of producing on an adjacent tract, and which is so located on said adjacent tract as not to comply with any one or more of the requirements of paragraph (C) of this rule.

(2) The chief shall grant an exception to the requirements of paragraph (C) of this rule if an applicant can demonstrate that such exception will protect correlative rights and/or promote conservation by permitting oil and gas to be produced which could not otherwise be produced.

(3) A well proposed to be drilled pursuant to such exceptions shall, nevertheless, be subject to the requirements of rule 1501:9-1-05 of the Administrative Code.

Effective: 08/11/2005

R.C. 119.032 review dates: 05/05/2005 and 08/11/2010

Promulgated Under: 119.03

Statutory Authority: 1509.03, 1509.23, 1509.24

Rule Amplifies: 1509.02, 1509.23, 1509.24, 1509.03

Prior Effective Dates: 2/10/71, 1/31/83, 4/15/04

No well shall be drilled nearer than one hundred feet to any inhabited private dwelling house; nearer than one hundred feet from any public building which may be used as a place of resort, assembly, education, entertainment, lodging, trade, manufacture, repair, storage, traffic, or occupancy by the public; nearer than fifty feet to the traveled part of any public street, road, or highway; nearer than fifty feet to a railroad track; nor nearer than one hundred feet to any other well.

Rule 1501:9-1-05 of the Administrative Code does not apply to a building or structure which is incident to agricultural use of the land on which it is located, unless such building is used as a private dwelling house or in the business of retail trade. The chief may grant an exception reducing the requirement in this rule that no wellhead shall be placed nearer than one hundred feet to any other wellhead where an applicant demonstrates that the requested reduction in spacing between wellheads is necessary to reduce impact to the land surface or the owners of the affected land.

R.C. 119.032 review dates: 12/29/2003 and 12/29/2008

Promulgated Under: 119.03

Statutory Authority: 1509.23

Rule Amplifies: 1509.23

Prior Effective Dates: 11/1/67, 8/3/96

In the event any word, phrase, sentence, or other portion of these rules shall hereafter be declared invalid, such invalidity shall not affect the remaining portions and parts of the rules adopted or promulgated by the chief.

R.C. 119.032 review dates: 05/16/2005 and 05/16/2010

Promulgated Under: 119.03

Statutory Authority: 1509.13

Rule Amplifies: 1509.13

Prior Effective Dates: 11/1/67, 1/31/83

All persons engaged in any phase of operation of any well or wells shall conduct such operation or operations in a manner which will not contaminate or pollute the surface of the land, or water on the surface or in the subsurface.

(A) All persons engaged in any phase of operation of any well or wells shall conduct such operation or operations in a manner which will not contaminate or pollute the surface of the land, or water on the surface or in the subsurface

(B) In urbanized areas, to minimize off-site sedimentation, erosion and to control the surface flow of water, the well owner and or authorized representative must follow the best management practices (BMPs) for oil and gas well site construction manual, dated April 30, 2005 that can be located at http://www.dnr.state.oh.us/mineral/oil/index.html or by contacting the division of mineral resources management, as provided by the chief. BMPs and other design standards other than provided by the chief maybe used if a well owner or their authorized representative demonstrates that the alternative BMP or practices minimize erosion to the same degree as the BMP’s provided by the chief.

Effective: 08/11/2005

R.C. 119.032 review dates: 05/05/2005 and 08/11/2010

Promulgated Under: 119.03

Statutory Authority: 1509.03, 1509.23

Rule Amplifies: 1509.02, 1509.03, 1509.06, 1509.072

Prior Effective Dates: 11/1/67, 12/29/03