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Illinois General Assembly· SB 3113Governor Approved

CREDIT UNIONS-VARIOUS, the official text

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SB3113 Enrolled                     LRB104 19645 BAB 33094 b

1   AN ACT concerning regulation.

2   Be it enacted by the People of the State of Illinois,

3 represented in the General Assembly:

4   Section 5. The Illinois Oil and Gas Act is amended by

5 changing Sections 1, 6, 8a, 8e, 14, and 26 as follows:

6   (225 ILCS 725/1) (from Ch. 96 1/2, par. 5401)

7   Sec. 1. Unless the context otherwise requires, the words

8 defined in this Section have the following meanings as used in

9 this Act.

10  "Department" means the Department of Natural Resources.

11  "Director" means the Director of Natural Resources.

12  "Drilling unit" means the surface area allocated by an

13 order or rule of the Department to the drilling of a single

14 well for the production of oil or gas from an individual pool.

15  "Enhanced recovery method" means any method used in an

16 effort to recover hydrocarbons from a pool by the injection of

17 fluids, gases, or other substances to maintain, restore, or

18 augment natural reservoir energy, or by introducing immiscible

19 or miscible gases, chemicals, or other substances, or heat, or

20 by in-situ combustion, or by any combination thereof.

21  "Field" means the same general surface area that is

22 underlaid or appears to be underlaid by one or more pools.

23  "Fresh water" means surface and subsurface water in its
    SB3113 Enrolled     -2-  LRB104 19645 BAB 33094 b

1 natural state useful as drinking water for human consumption,

2 domestic livestock, irrigation, industrial, municipal, and

3 recreational purposes, and that will support aquatic life and

4 contains less than 10,000 ppm of total dissolved solids.

5   "Person" means any natural person, corporation,

6 association, partnership, governmental agency or other legal

7 entity, receiver, trustee, guardian, executor, administrator,

8 fiduciary or representative of any kind.

9   "Oil" means natural crude oil or petroleum and other

10 hydrocarbons, regardless of gravity, which are produced at the

11 well in liquid form by ordinary production methods or by the

12 use of an oil and gas separator and which are not the result of

13 condensation of gas after it leaves the underground reservoir.

14  "Gas" means all natural gas, including casinghead gas, and

15 all other natural hydrocarbons not defined above as oil.

16  "Mineral owner's royalty" means the share of oil and gas

17 production reserved in an oil and gas lease, free of all costs

18 by an owner of the minerals, whether denominated royalty or

19 overriding royalty.

20  "Mining Board" means the State Mining Board in the

21 Department of Natural Resources Office of Mines and Minerals.

22  "Oil" means natural crude oil or petroleum and other

23 hydrocarbons, regardless of gravity, which are produced at the

24 well in liquid form by ordinary production methods or by the

25 use of an oil and gas separator, which are not the result of

26 condensation of gas after it leaves the underground reservoir.
    SB3113 Enrolled  -3-  LRB104 19645 BAB 33094 b

1   "Orphan well" means a well for which: (1) no fee

2 assessment under Section 19.7 of this Act has been paid or no

3 other bond coverage has been provided for 2 consecutive years;

4 (2) no oil or gas has been produced from the well or from the

5 lease or unit on which the well is located for 2 consecutive

6 years; and (3) no permittee or owner can be identified or

7 located by the Department. "Orphan well" includes a well that

8 has been drilled for purposes other than those for which a

9 permit is required under this Act if the well is a conduit for

10 oil or salt water intrusions into fresh water zones or onto the

11 surface, which may be caused by oil and gas operations.

12  "Owner" means the person who has the right to drill into

13 and produce from any pool and to appropriate the production

14 either for the person or for the person and another, others, or

15 solely for others, excluding the mineral owner's royalty, if

16 the right to drill and produce has been granted under an oil

17 and gas lease. "Owner" includes a person granted the right to

18 drill and operate an injection (Class II UIC) well independent

19 of the right to drill for and produce oil or gas. When the

20 right to drill, produce, and appropriate production is held by

21 more than one person, then all persons holding these rights

22 may designate the owner by a written operating agreement or

23 similar written agreement. In the absence of such an

24 agreement, and subject to the provisions of Sections 22.2 and

25 23.1 through 23.16 of this Act, the owner shall be the person

26 designated in writing by a majority of the persons in interest
    SB3113 Enrolled      -4-  LRB104 19645 BAB 33094 b

1 holding these rights.

2   "Permit" means the Department's written authorization

3 allowing a well to be drilled, deepened, converted, or

4 operated by an owner.

5   "Permittee" means the owner holding or required to hold

6 the permit, and who is also responsible for paying assessments

7 in accordance with Section 19.7 of this Act, and, where

8 applicable, executing and filing the bond associated with the

9 well as principal, and who is responsible for compliance with

10 all statutory and regulatory requirements pertaining to the

11 well.

12  When the right and responsibility for operating a well is

13 vested in a receiver or trustee appointed by a court of

14 competent jurisdiction, the permit shall be issued to the

15 receiver or trustee.

16  "Person" means any natural person, corporation,

17 association, partnership, governmental agency, including any

18 other legal entity, receiver, trustee, guardian, executor,

19 administrator, fiduciary, or representative of any kind.

20  "Pool" means a natural, underground reservoir containing

21 in whole or in part, a natural accumulation of oil or gas, or

22 both. Each productive zone or stratum of a general structure,

23 which is completely separated from any other zone or stratum

24 in the structure, is deemed a separate "pool" as used herein.

25  "Produced water" means water, regardless of chloride and

26 total dissolved solids content that is produced in conjunction
    SB3113 Enrolled       -5-  LRB104 19645 BAB 33094 b

1 with oil and natural gas production or natural gas storage

2 operations.

3   "Temporary abandonment status" means a well that has

4 received an authorization for temporary abandonment status

5 from the Department.

6   "Vacuum" means pressure that is reduced below the pressure

7 of the atmosphere.

8   "Field" means the same general surface area which is

9 underlaid or appears to be underlaid by one or more pools.

10  "Permit" means the Department's written authorization

11 allowing a well to be drilled, deepened, converted, or

12 operated by an owner.

13  "Permittee" means the owner holding or required to hold

14 the permit, and who is also responsible for paying assessments

15 in accordance with Section 19.7 of this Act and, where

16 applicable, executing and filing the bond associated with the

17 well as principal and who is responsible for compliance with

18 all statutory and regulatory requirements pertaining to the

19 well.

20  When the right and responsibility for operating a well is

21 vested in a receiver or trustee appointed by a court of

22 competent jurisdiction, the permit shall be issued to the

23 receiver or trustee.

24  "Orphan Well" means a well for which: (1) no fee

25 assessment under Section 19.7 of this Act has been paid or no

26 other bond coverage has been provided for 2 consecutive years;
    SB3113 Enrolled  -6-          LRB104 19645 BAB 33094 b

1 (2) no oil or gas has been produced from the well or from the

2 lease or unit on which the well is located for 2 consecutive

3 years; and (3) no permittee or owner can be identified or

4 located by the Department. Orphaned wells include wells that

5 may have been drilled for purposes other than those for which a

6 permit is required under this Act if the well is a conduit for

7 oil or salt water intrusions into fresh water zones or onto the

8 surface which may be caused by oil and gas operations.

9   "Owner" means the person who has the right to drill into

10 and produce from any pool, and to appropriate the production

11 either for the person or for the person and another, or others,

12 or solely for others, excluding the mineral owner's royalty if

13 the right to drill and produce has been granted under an oil

14 and gas lease. An owner may also be a person granted the right

15 to drill and operate an injection (Class II UIC) well

16 independent of the right to drill for and produce oil or gas.

17 When the right to drill, produce, and appropriate production

18 is held by more than one person, then all persons holding these

19 rights may designate the owner by a written operating

20 agreement or similar written agreement. In the absence of such

21 an agreement, and subject to the provisions of Sections 22.2

22 and 23.1 through 23.16 of this Act, the owner shall be the

23 person designated in writing by a majority in interest of the

24 persons holding these rights.

25  "Department" means the Department of Natural Resources.

26  "Director" means the Director of Natural Resources.
    SB3113 Enrolled          -7-  LRB104 19645 BAB 33094 b

1   "Mining Board" means the State Mining Board in the

2 Department of Natural Resources, Office of Mines and Minerals.

3   "Mineral Owner's Royalty" means the share of oil and gas

4 production reserved in an oil and gas lease free of all costs

5 by an owner of the minerals whether denominated royalty or

6 overriding royalty.

7   "Waste" means "physical waste" as that term is generally

8 understood in the oil and gas industry, and further includes:

9   (1) the locating, drilling, and producing of any oil

10  or gas well or wells drilled contrary to the valid order,

11  rules and regulations adopted by the Department under the

12  provisions of this Act;

13  (2) permitting the migration of oil, gas, or water

14  from the stratum in which it is found, into other strata,

15  thereby ultimately resulting in the loss of recoverable

16  oil, gas or both;

17  (3) the drowning with water of any stratum or part

18  thereof capable of producing oil or gas, except for

19  secondary recovery purposes;

20  (4) the unreasonable damage to underground, fresh or

21  mineral water supply, workable coal seams, or other

22  mineral deposits in the operations for the discovery,

23  development, production, or handling of oil and gas;

24  (5) the unnecessary or excessive surface loss or

25  destruction of oil or gas resulting from evaporation,

26  seepage, leakage or fire, especially such loss or
    SB3113 Enrolled    -8-  LRB104 19645 BAB 33094 b

1   destruction incident to or resulting from the escape of

2   gas into the open air in excessive or unreasonable

3   amounts, provided, however, it shall not be unlawful for

4   the operator or owner of any well producing both oil and

5   gas to burn such gas in flares when such gas is, under the

6   other provisions of this Act, lawfully produced, and where

7   there is no market at the well for such escaping gas; and

8   where the same is used for the extraction of casinghead

9   gas, it shall not be unlawful for the operator of the plant

10  after the process of extraction is completed, to burn such

11  residue in flares when there is no market at such plant for

12  such residue gas;

13        (6) permitting unnecessary fire hazards; and

14        (7) permitting unnecessary damage to or destruction of

15  the surface, soil, animal, fish or aquatic life or

16  property from oil or gas operations.

17  "Drilling Unit" means the surface area allocated by an

18 order or regulation of the Department to the drilling of a

19 single well for the production of oil or gas from an individual

20 pool.

21  "Enhanced Recovery Method" means any method used in an

22 effort to recover hydrocarbons from a pool by injection of

23 fluids, gases or other substances to maintain, restore or

24 augment natural reservoir energy, or by introducing immiscible

25 or miscible gases, chemicals, other substances or heat or by

26 in-situ combustion, or by any combination thereof.
    SB3113 Enrolled     -9-               LRB104 19645 BAB 33094 b

1   "Well-Site Equipment" means any production-related

2 equipment or materials specific to the well, including motors,

3 pumps, pump jacks, tanks, tank batteries, separators,

4 compressors, casing, tubing, and rods.

5   "Temporary abandonment status" means a well that has

6 received an authorization for temporary abandonment status

7 from the Department.

8 (Source: P.A. 102-1017, eff. 1-1-23.)

9   (225 ILCS 725/6) (from Ch. 96 1/2, par. 5409)

10  Sec. 6. The Department shall have the authority to conduct

11 hearings and to make such reasonable rules as may be necessary

12 from time to time in the proper administration and enforcement

13 of this Act, including the adoption of rules and the holding of

14 hearings for the following purposes:

15  (1) To require the drilling, casing and plugging of

16  wells to be done in such a manner as to prevent the

17  migration of oil or gas from one stratum to another; to

18  prevent the intrusion of water into oil, gas or coal

19  strata; to prevent the pollution of fresh water supplies

20  by oil, gas or salt water.

21  (2) To require the person desiring or proposing to

22  drill, deepen or convert any well for the exploration or

23  production of oil or gas, for injection or water supply in

24  connection with enhanced recovery projects, for the

25  disposal of salt water, brine, or other oil or gas field
    SB3113 Enrolled  - 10 - LRB104 19645 BAB 33094 b

1   wastes, or for input, withdrawal, or observation in

2   connection with the storage of natural gas or other liquid

3   or gaseous hydrocarbons before commencing the drilling,

4   deepening or conversion of any such well, to make

5   application to the Department upon such form as the

6   Department may prescribe and to comply with the provisions

7   of this Section. The drilling, deepening or conversion of

8   any well is hereby prohibited until such application is

9   made and the applicant is issued a permit therefor as

10  provided by this Act. Each application for a well permit

11  shall include the following: (A) The exact location of the

12  well, (B) the name and address of the manager, operator,

13  contractor, driller, or any other person responsible for

14  the conduct of drilling operations, (C) the proposed depth

15  of the well, (D) lease ownership information, and (E) such

16  other relevant information as the Department may deem

17  necessary or convenient to effectuate the purposes of this

18  Act.

19  (2.5) Additionally, for each applicant who has not

20  been issued a permit that is (i) not of record with the

21  Department on the effective date of this amendatory Act of

22  the 104th General Assembly, or (ii) a permittee on record

23  with the Department but who has failed to make payments of

24  the assessments as required under Section 19.7 of this Act

25  at any time in the preceding 5 years of the application,

26  the permittee or applicant shall execute, as principal,
    SB3113 Enrolled     - 11 - LRB104 19645 BAB 33094 b

1   and file with the Department a bond, executed by a surety

2   authorized to transact business in this State, in an

3   amount estimated to cover the cost of plugging the well

4   and restoring the well site and shall set at the following

5   rates:

6             (A) $10,000 for one well;

7             (B) $25,000 in total covering a blanket bond for

8   up to 10 wells;

9             (C) $50,000 in total covering a blanket bond for

10  up to 50 wells; or

11            (D) $100,000 in total covering a blanket bond for

12  up to 100 wells.

13  A blanket bond covering more than 100 wells shall be

14  increased to include the bond amount, as provided in this

15  paragraph (2.5), for the total number of wells more than

16  100 that are covered by the blanket bond. Such bond shall

17  be submitted to the Department before drilling, deepening,

18  converting, or operating any well for which a new or

19  transfer permit is required and that has not previously

20  been plugged and abandoned in accordance with the Act. The

21  Department shall release the bond if any of the following

22  are met:

23            (i) all wells covered by the bond are plugged and

24  all well sites are restored in accordance with this

25  Act and administrative rules;

26            (ii) all wells covered by the bond are transferred
    SB3113 Enrolled           - 12 - LRB104 19645 BAB 33094 b

1   in accordance with this Act and administrative rules;

2   or

3       (iii) the permittee pays assessments to the

4   Department in accordance with Section 19.7 of this Act

5   for 5 consecutive years from the date of issuance of a

6   permit after the effective date of this amendatory Act

7   of the 104th General Assembly and the permittee is not

8   in violation of this Act or any administrative rules.

9   In lieu of a surety bond, the applicant may provide

10  certificates of deposit or irrevocable letters of credit

11  under such terms and conditions as the Department may

12  provide by rule.

13  The sureties on all bonds in effect on this amendatory

14  Act of the 104th General Assembly shall remain liable as

15  sureties in accordance with their undertakings until

16  released by the Department from further liability under

17  the Act. The principal on each bond in effect on the

18  effective date of this amendatory Act of the 104th General

19  Assembly shall be released from the obligation of

20  maintaining the bond if the well covered by a surety bond

21  has been plugged and the well site restored in accordance

22  with the Department's rules or the principal of the surety

23  has paid the initial assessment in accordance with Section

24  19.7 and no well or well site covered by the surety bond is

25  in violation of the Act.

26  No permit shall be issued to a corporation
    SB3113 Enrolled          - 13 - LRB104 19645 BAB 33094 b

1   incorporated outside of Illinois until the corporation has

2   been authorized to do business in Illinois.

3   No permit shall be issued to an individual,

4   partnership, or other unincorporated entity that is not a

5   resident of Illinois until that individual, partnership,

6   or other unincorporated entity has irrevocably consented

7   to be sued in Illinois.

8   (3) To require the person assigning, transferring, or

9   selling any well for which a permit is required under this

10  Act to notify the Department of the change of ownership.

11  The notification shall be on a form prescribed by the

12  Department, shall be executed by the current permittee and

13  by the new permittee, or their authorized representatives,

14  and shall be filed with the Department within 30 days

15  after the effective date of the assignment, transfer or

16  sale. Within the 30-day 30 day notification period and

17  prior to operating the well, the new permittee shall pay

18  the required well transfer fee and, where applicable, file

19  with the Department the bond required under subsection

20  (2.5) of this Section.

21  (4) To require the filing with the State Geological

22  Survey of all geophysical logs, a well drilling report and

23  drill cuttings or cores, if cores are required, within 90

24  days after drilling ceases; and to file a completion

25  report with the Department within 30 days after the date

26  of first production following initial drilling or any
    SB3113 Enrolled      - 14 - LRB104 19645 BAB 33094 b

1   reworking, or after the plugging of the well, if a dry

2   hole. A copy of each completion report submitted to the

3   Department shall be delivered to the State Geological

4   Survey. The Department and the State Geological Survey

5   shall keep the reports confidential, if requested in

6   writing by the permittee, for 2 years after the date the

7   permit is issued by the Department. This confidentiality

8   requirement shall not prohibit the use of the report for

9   research purposes, provided the State Geological Survey

10  does not publish specific data or identify the well to

11  which the completion report pertains.

12  (5) To prevent "blowouts", "caving" and "seepage" in

13  the same sense that conditions indicated by such terms are

14  generally understood in the oil and gas business.

15  (6) To prevent fires.

16  (7) To ascertain and identify the ownership of all oil

17  and gas wells, producing leases, refineries, tanks,

18  plants, structures, and all storage and transportation

19  equipment and facilities.

20  (8) To regulate the use of any enhanced recovery

21  method in oil pools and oil fields.

22  (9) To regulate or prohibit the use of vacuum,

23  including charging a vacuum permit application fee of up

24  to $300 per permit.

25  (10) To regulate the spacing of wells, the issuance of

26  permits, and the establishment of drilling units.
    SB3113 Enrolled  - 15 - LRB104 19645 BAB 33094 b

1   (11) To regulate directional drilling of oil or gas

2   wells.

3   (12) To regulate the plugging of wells.

4   (13) To require that wells for which no logs or

5   unsatisfactory logs are supplied shall be completely

6   plugged with cement from bottom to top.

7   (14) To require a description in such form as is

8   determined by the Department of the method of well

9   plugging for each well, indicating the character of

10  material used and the positions and dimensions of each

11  plug.

12  (15) To prohibit waste, as defined in this Act.

13  (16) To require the keeping of such records, the

14  furnishing of such relevant information and the

15  performance of such tests as the Department may deem

16  necessary to carry into effect the purposes of this Act.

17  (17) To regulate the disposal of salt or

18  sulphur-bearing water and any oil field waste produced in

19  the operation of any oil or gas well.

20  (18) To prescribe rules, conduct inspections and

21  require compliance with health and safety standards for

22  the protection of persons working underground in

23  connection with any oil and gas operations. For the

24  purposes of this paragraph, oil and gas operations include

25  drilling or excavation, production operations, plugging or

26  filling in and sealing, or any other work requiring the
    SB3113 Enrolled          - 16 - LRB104 19645 BAB 33094 b

1   presence of workers in shafts or excavations beneath the

2   surface of the earth. Rules promulgated by the Department

3   may include minimum qualifications of persons performing

4   tasks affecting the health and safety of workers

5   underground, minimum standards for the operation and

6   maintenance of equipment, and safety procedures and

7   precautions, and shall conform, as nearly as practicable,

8   to corresponding qualifications, standards and procedures

9   prescribed under the Coal Mining Act.

10  (19) To deposit the amount of any forfeited surety

11  bond or other security in the Plugging and Restoration

12  Fund, a special fund in the State treasury which is hereby

13  created; to deposit into the Fund any amounts collected,

14  reimbursed or recovered by the Department under Sections

15  19.5, 19.6 and 19.7 of this Act; to accept, receive, and

16  deposit into the Fund any grants, gifts or other funds

17  which may be made available from public or private sources

18  and all earnings received from investment of monies in the

19  Fund; and to make expenditures from the Fund for the

20  purposes of plugging, replugging or repairing any well,

21  and restoring the site of any well, determined by the

22  Department to be abandoned or ordered by the Department to

23  be plugged, replugged, repaired or restored under Sections

24  8a, 19 or 19.1 of this Act, including expenses in

25  administering the Fund.

26  For the purposes of this Act, the State Geological Survey
    SB3113 Enrolled  - 17 - LRB104 19645 BAB 33094 b

1 shall co-operate with the Department in making available its
2 scientific and technical information on the oil and gas
3 resources of the State, and the Department shall in turn
4 furnish a copy to the State Geological Survey of all drilling
5 permits as issued, and such other drilling and operating data
6 received or secured by the Department which are pertinent to
7 scientific research on the State's mineral resources.
8 (Source: P.A. 104-150, eff. 1-1-26.)

9   (225 ILCS 725/8a) (from Ch. 96 1/2, par. 5413)

10  Sec. 8a. When an inspector or other authorized employee or

11 agent of the Department determines that any permittee, or any

12 person engaged in conduct or activities required to be

13 permitted under this Act, is in violation of any requirement

14 of this Act or the rules adopted hereunder or any permit

15 condition, or has falsified or otherwise misstated any

16 information on or relative to any application, permit,

17 required record, or other document required to be submitted to

18 the Department by this Act or any rules or procedures adopted

19 under this Act, a notice of violation shall be completed and

20 delivered to the Director or his designee.

21  The notice shall contain:

22  1. the nature of the violation;

23  2. the action needed to abate the violation, including

24  any appropriate remedial measures to prevent future

25  violation such as replacement, repair, testing and
    SB3113 Enrolled  - 18 - LRB104 19645 BAB 33094 b

1   reworking a well and any appurtenances and equipment;

2   3. the time within which the violation is to be

3   abated; and

4   4. any factors known to the person completing the

5   notice of violation in aggravation or mitigation and the

6   existence of any factors indicating that the permit should

7   be conditioned or modified.

8   Upon receipt of a notice of violation, the Director shall

9 conduct his investigation and may affirm, vacate or modify the

10 notice of violation. In determining whether to take actions in

11 addition to remedial action necessary to abate a violation,

12 the Director shall consider the person's or permittee's

13 history of previous violations including violations at other

14 locations and under other permits, the seriousness of the

15 violation including any irreparable harm to the environment or

16 damage to property, the degree of culpability of the person or

17 permittee and the existence of any additional conditions or

18 factors in aggravation or mitigation including information

19 provided by the person or permittee.

20  The Director shall serve the person or permittee with his

21 decision at the conclusion of the investigation. Modification

22 of the notice of violation may include:

23  1. any different or additional remedial action

24  required to abate the violation and the time within which

25  the violation must be abated;

26  2. the assessment of civil penalties not to exceed
    SB3113 Enrolled  - 19 - LRB104 19645 BAB 33094 b

1   $5,000 for each and every falsification or misstatement of

2   information and civil penalties not to exceed $4,000 per

3   and $1,000 a day for each and every act of violation not

4   including a falsification or misstatement of information;

5   3. probationary or permanent modification or

6   conditions on the permit which may include special

7   monitoring or reporting requirements; and

8   4. revocation of the permit.

9   The Director's decision shall provide that the person or

10 permittee has the right to request a hearing.

11  The Director's decision affirming, vacating or modifying

12 the notice of violation shall be considered served when mailed

13 by first class mail to the person or permittee at his last

14 known address.

15  A person or permittee shall have 30 days from the date of

16 service of the Director's decision to request a hearing. If

17 the Director's decision includes the assessment of a civil

18 penalty, the person or permittee charged with the penalty

19 shall pay the penalty in full or, if the person or permittee

20 wishes to contest either the amount of the penalty or the fact

21 of the violation, submit the assessed amount, with the request

22 for a hearing, to be held in escrow. The filing of a request

23 for a hearing shall not operate as a stay of the Director's

24 decision. All civil penalties finally assessed and paid to the

25 Department shall be deposited in the Underground Resources

26 Conservation Enforcement Fund.
    SB3113 Enrolled           - 20 - LRB104 19645 BAB 33094 b

1   Any person who willfully or knowingly authorized, ordered,

2 or carried out any violation cited in the Director's decision

3 shall be subject to the same actions, including civil

4 penalties, which may be imposed on the person or permittee

5 under this Section.

6   Upon receipt of a request, the Department shall provide an

7 opportunity for a formal hearing upon not less than 5 days

8 notice. The hearing shall be conducted by the Director or

9 anyone designated by him for such purpose, and shall be

10 located and conducted in accordance with the rules of the

11 Department. Failure of the person or permittee to timely

12 request a hearing or, if a civil penalty has been assessed, to

13 timely tender the assessed civil penalty, shall constitute a

14 waiver of all legal rights to contest the Director's decision,

15 including the amount of any civil penalty. Within 30 days of

16 the close of the hearing record or expiration of the time to

17 request a hearing, the Department shall issue a final

18 administrative order.

19  If, at the expiration of the period of time originally

20 fixed in the Director's decision or in any subsequent

21 extension of time granted by the Department, the Department

22 finds that the violation has not been abated, it may

23 immediately order the cessation of operations or the portions

24 thereof relevant to the violation. Such cessation order shall

25 be served in the manner and within the time prescribed in

26 Section 19.1 of this Act.
    SB3113 Enrolled  - 21 - LRB104 19645 BAB 33094 b

1   Pending the holding of any hearing or entry of a final

2 administrative order under this Section, the person or

3 permittee to whom the cessation order was issued may file a

4 written request for temporary relief subject to the same terms

5 and conditions as are provided for in Section 19.1 of this Act.

6   If the Department finds that a person or permittee has

7 failed to comply with a final administrative order, the

8 Department may immediately order the cessation of operations

9 or the portions thereof relevant to the final administrative

10 order. Such cessation order shall be served in the manner and

11 within the time prescribed in Section 19.1 of this Act. The

12 Department shall commence a hearing within 5 days after

13 issuance of a cessation order and shall conclude such hearing

14 without appreciable delay. At the hearing the Department shall

15 have the burden of proving that the person or permittee has not

16 complied with the final administrative order. A cessation

17 order issued under this paragraph shall continue in effect

18 until modified, vacated, or terminated by the Department.

19  The Department shall refuse to issue a permit or permits,

20 and shall revoke any permit or permits previously issued if:

21  (1) the applicant has falsified or otherwise misstated

22  any information on or relative to the permit application;

23  (2) the applicant has failed to abate a violation of

24  the Act specified in a final administrative decision of

25  the Department;

26  (3) an officer, director, partner, or person with an
    SB3113 Enrolled    - 22 - LRB104 19645 BAB 33094 b

1   interest in the applicant exceeding 5% failed to abate a

2   violation of the Act specified in a final administrative

3   decision of the Department; or

4           (4) the applicant is an officer, director, partner, or

5   person with an interest exceeding 5% in another entity

6   that has failed to abate a violation of the Act specified

7   in a final administrative decision of the Department.

8 (Source: P.A. 99-137, eff. 1-1-16.)

9   (225 ILCS 725/8e)

10  Sec. 8e. Temporary abandonment status fees.

11  (a) The Department shall assess and collect annual fees of

12 $100 per well for each well that is in temporary abandonment

13 status.

14  (b) All annual fees collected pursuant to subsection (a)

15 shall be deposited into the Plugging and Restoration Fund, and

16 one-half of all such deposited fees shall be used solely for

17 the Landowner Grant Program. deposited as follows: (1)

18 one-half of all such fees shall be placed in the Plugging and

19 Restoration Fund; and (2) one-half of all such fees shall be

20 placed in the Landowner Grant Program.

21 (Source: P.A. 102-1017, eff. 1-1-23.)

22  (225 ILCS 725/14) (from Ch. 96 1/2, par. 5420)

23  Sec. 14. Each application for a permit to drill, deepen,

24 convert, or amend shall be accompanied by the required fee of
    SB3113 Enrolled   - 23 - LRB104 19645 BAB 33094 b

1 $400. The fee for an application for a permit to oil lease road

2 shall be $150. A fee of $75 for the first 100 wells and $50 for

3 each well in excess of 100 shall be paid by the new owner for

4 each transfer of well ownership. Except for the assessments

5 required to be deposited in the Plugging and Restoration Fund

6 under Section 19.7 of this Act and any other deposits required

7 to be deposited in the Plugging and Restoration Fund under

8 this Act, all fees assessed and collected under this Act shall

9 be deposited in the Underground Resources Conservation

10 Enforcement Fund. The moneys monies deposited into the

11 Plugging and Restoration Fund or the Underground Resources

12 Conservation Enforcement Fund under this Section or deposited

13 into the Plugging and Restoration Fund under Section 26 shall

14 not be subject to administrative charges or chargebacks unless

15 otherwise authorized by this Act.

16  On and after July 1, 2022, any fees that are created by or

17 increased by this amendatory Act of the 102nd General Assembly

18 in this Section shall be deposited into the Plugging and

19 Restoration Fund.

20 (Source: P.A. 102-1017, eff. 1-1-23.)

21  (225 ILCS 725/26) (from Ch. 96 1/2, par. 5456)

22  Sec. 26. (a) Any person who violates any provision of this

23 Act or any valid rule, regulation, permit or order of the

24 Department made hereunder, or who repeats or continues the

25 violation thereof, shall be subject to a civil penalty not to
    SB3113 Enrolled           - 24 - LRB104 19645 BAB 33094 b

1 exceed:

2          (1) $1,000 a day for each and every act of violation

3   lasting 90 days or less.

4          (2) $2,000 a day for any violation lasting more than

5   90 days but less than 180 days.

6          (3) $4,000 a day for any violation lasting 180 days or

7   more.

8   Any civil penalties that are assessed in excess of $1,000

9 per day shall be deposited into the Plugging and Restoration

10 Fund.

11  Civil penalties may not be assessed until notice has been

12 sent to the permittee. Such notice may be sent electronically

13 at the time the notice of violation is sent to the Springfield

14 office of the Department.

15  A permittee may notify the Department if an extraordinary

16 circumstance prevents abatement of a violation for which civil

17 penalties are sought to be assessed against the permittee. If

18 the permittee notifies the Department, the permittee shall

19 then provide evidence of the extraordinary circumstance to the

20 Department, as set forth by rule. The assessment of a civil

21 penalty shall not begin until the extraordinary circumstance

22 terminates, as set forth by rule. The process to declare an

23 extraordinary circumstance, the Department's review and

24 approval of the extraordinary circumstance, and any appeal of

25 the Department's determination shall be set by rule. An

26 extraordinary circumstance shall include, but not be limited
   SB3113 Enrolled          - 25 - LRB104 19645 BAB 33094 b

1 to, roads being posted with a weight limit that prevents the

2 movement of equipment, wet field conditions that prevent

3 mitigation activities, or flooding that prevents the movement

4 of equipment for the abatement.

5  (b) Any person willfully wilfully aiding or abetting any

6 other person in the violation of any provision of this Act, or

7 any rule, regulation and order made hereunder, shall be

8 subject to the same penalties as are prescribed herein for the

9 violation by such other person.

10 (Source: P.A. 85-1334.)
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