Chavez Supports Historic Oil And Gas Modernization
COLUMBUS— The Ohio State Senate passed Senate Bill 219, sponsored by Senator Al Landis (R-Dover), legislation which greatly reforms Ohio's oil and gas laws.
"Senate Bill 219 marks the first general update to Ohio's oil and gas operation laws in over a decade," said Senator Brian Chavez (R-Marietta). "As technology modernizes, so should our laws. This legislation will help support one of Ohio's most important industries while ensuring our water and air are clean."
As part of modernizing Ohio's oil and gas laws, this legislation updates current statutes to better align with real life scenarios impacting the industry and local residents. These changes include:
- Creating standard and guidelines around Road Use Maintenance Agreements
- Reducing the statute of limitations to terminate an oil and gas lease from 21 years to 6 years
- Granting the Chief of the Division of Oil and Gas Resources Management the authority to regulate cross-state drilling
- Requiring notice of orphan well plugging to be posted on the Ohio Department of Natural Resources website or in a local newspaper
- Restricting to ten expedited permits per year for operators
- Allowing the state to capture carbon credit revenues when wells are plugged
- Redirecting certain fees well owners pay to local counties
- Providing regulatory certainty by requiring timelines on both the Division of Oil and Gas Resources Management and Industry during the state lands leasing process
- Directing the Division of Oil and Gas Resources Management to prioritize the plugging of orphan wells near active injection wells
Senate Bill 219 does not remove any regulations or oversight on oil and gas operation.
"This will not only protect health, human safety, and the environment but will also enable job creation and investment in our state, all while ensuring that Ohio can be energy dominant for decades to come," added Senator Chavez.
Senate Bill 219 has been sent to the Ohio House for further consideration.
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