The Division of Mineral Resources Management regulates Ohio gas well drilling.
The Ohio Division of Mineral Resources Management sets strict regulations on natural gas well drilling in Ohio under the authority of the Ohio Administrative Code Chapter 1501:9---Oil Well Drilling. Drilling any kind of oil or natural gas well, without first following these laws, will result in civil and criminal penalties.
Permit
All businesses that drill a natural gas well in Ohio must submit an application to the Division of Mineral Resources Management for a state drilling permit. This application must include a plan for waste substance disposal. Drilling companies may produce waste as a byproduct of drilling for natural gas. A business should identify a disposal well so that waste substances can be contained without harm to the environment. It should also submit a map that shows where the well will be drilled and the property lines of the intended drill area. This map must also show buildings, roads, railroads and natural bodies of water within 200 feet of the intended drill site. Applicants should include a color aerial photograph of the area with their application.
Best Management Practices
All businesses that intend to drill for natural gas must comply with Ohio Best Management Practices. These practices govern the construction, safety and environment controls for businesses that construct wells and extract natural gas. Businesses should construct and maintain an access road that allows fire and emergency teams to visit the site in case of an emergency. Companies must maintain these roads and keep them clear of debris. As part of BMPs, the owner of the natural gas well must test all water wells within 300 feet of the drill site, so that the Division of Mineral Resources Management (DMRM) can test water supplies to ensure that they have not become polluted as a result of drilling. The DMRM may send inspectors to the site to make sure that natural gas drilling complies with all regulations.
Time Frame
After all of these requirements have been met, the business may start to extract natural gas. Businesses must start the actual drilling of the well no later than a year after the division issues a permit or else the permit will expire. The Ohio Department of Natural Resources (DNR) will have to approve any revisions to a drilling plan.
Bond
All individuals or companies that want to drill a natural gas well in Ohio must obtain a surety bond in the minimum amount of $5,000 for a single well or $15,000 for multiple wells on the same site. The surety company must be licensed in Ohio. If the DNR finds any violations of Ohio Best Management Practices, the chief of the DNR may issue a bond forfeiture, in which case the Ohio DNR will seize the bond to compensate injured parties. The DNR will accept financial statements that prove a certain net worth as security for domestic natural gas well owners.
Well Spacing
Wells must be located at least 200 feet apart from adjacent wells. Permits to drill zero to 1,000 feet for natural gas will not be issued until the land tract is at least one acre. Drilling between 1,000 and 2,000 feet into the ground requires at least a 10-acre parcel of land, while gas wells between 2,000 and 4,000 feet must be located on 20 acres of land. As oil well depth increases, the well must be further away from the property lines of other land owners.
