To enact sections 1509.031, 1509.063, 1509.064, 1509.191, 1509.192, 1509.227, and 6111.70 of the Revised Code to establish requirements governing well stimulation, brine disposal, and water that is used in the drilling and operation of oil and gas wells, including a requirement that oil and gas permittees pay a seven per cent overriding royalty for each well that is stimulated.

Section 1. That sections 1509.031, 1509.063, 1509.064, 1509.191, 1509.192, 1509.227, and 6111.70 of the Revised Code be enacted to read as follows:

Sec. 1509.031.  The director of environmental protection or the director's designee and the health commissioner of the health district in which a well is located or the commissioner's designee may enter at any time on lands, public or private, to sample and analyze fluids used to stimulate a well.

Sec. 1509.063.  (A) After the issuance of a permit for a new well under section 1509.06 of the Revised Code, the chief of the division of oil and gas resources management shall notify the director of environmental protection of the issuance of the permit. The notice shall contain all of the information that is necessary for the director to conduct the activities required by this section, including the identification of the owner and the location of the proposed well.

After receipt of the notice and prior to the commencement of any activity at the site of the proposed well, the director shall conduct baseline testing of surface water and ground water for quality and quantity, including annual flow measurements. After completion of the testing, the director shall notify the chief and the owner. The owner may commence drilling or other operations at the site of the proposed well after receipt of the notification from the director.

(B) Prior to the stimulation of an existing well, an owner shall notify the director, in a manner that is prescribed by the director, of the owner's intent to stimulate the well. After receipt of the notice, the director shall conduct baseline testing of surface water and ground water for quality and quantity, including annual flow measurements. After completion of the testing, the director shall notify the chief and the owner. The owner may stimulate the well after receipt of the notification from the director.

Sec. 1509.064.  (A) A person that is conducting operations or activities at a well site shall recycle, capture, or treat all liquids and solids used in the operations or activities.

(B) The director of environmental protection shall adopt rules in accordance with Chapter 119. of the Revised Code that require a person that is conducting operations or activities at a well site to document the quantity of water used in the operations or activities. The rules shall require the person to submit quarterly reports to the environmental protection agency and to the division of oil and gas resources management that identify all methods of handling the liquids and solids used in the stimulation of the well. In addition, the quarterly reports shall identify all methods of disposal and recycling of all liquids and solids used in the stimulation of the well.

(C) The agency and the division shall post in their entirety the quarterly reports received under division (B) of this section on the agency's and division's publicly accessible web sites. Each web site shall enable a person to request automatic notification that a quarterly report has been posted. The agency and the division jointly shall establish procedures and requirements that are necessary for the implementation of this division.

Sec. 1509.191. Prior to the commencement of any activity at the proposed site of a well, the owner shall submit to the environmental protection agency and to the board of health of the health district in which the well is or is to be located a complete listing of all of the chemicals and other substances that will be used to stimulate the well. The list shall be submitted on a form or in a manner prescribed by the director of environmental protection. Not later than five days after receipt of the list, the director shall post the list on the environmental protection agency's publicly accessible web site.

Sec. 1509.192.  On and after the effective date of this section, if well stimulation is used in a well, the person who has been issued a permit under section 1509.06 of the Revised Code for the well shall pay a seven per cent overriding royalty to the director of environmental protection who shall deposit the money from the royalty in the state treasury to the credit of the clean water restoration fund created in section 6111.70 of the Revised Code. The director shall adopt rules in accordance with Chapter 119. of the Revised Code establishing procedures and requirements that are necessary for the implementation of this section.

Sec. 1509.227.  Prior to commencing the drilling of a well, the owner shall submit to the director of environmental protection, the chief of the division of oil and gas resources management, and the health commissioner of the health district in which the well is to be located documentation identifying where and how the owner will handle brine or other waste substances resulting from, obtained from, or produced from oil and gas production at the well. In addition, the documentation shall identify where and how the owner will dispose of or recycle brine or other waste substances resulting from, obtained from, or produced from oil and gas production at the well. The director shall establish appropriate procedures for the purpose of implementing this section.

Sec. 6111.70.  There is hereby created in the state treasury the clean water restoration fund consisting of money credited to the fund under section 1509.192 of the Revised Code. The director of environmental protection shall use money in the fund to perform baseline testing of surface water and ground water for quantity and quality under section 1509.063 of the Revised Code and to sample and analyze fluids under section 1509.031 of the Revised Code. In addition, money in the fund shall be used to remediate and repair any water well or ground water adversely affected by the drilling or operation of an oil or natural gas well.