Part 240: THE ILLINOIS OIL AND GAS ACT

Section 240.1380 Transfer of Permits (Recodified) (Source: Recodified to Section 240.980 at 15 Ill. Reg. 8566)

Section 240.1385 Revocation of Oil Field Brine Hauling Permit (Recodified) (Source: Recodified to Section 240.985 at 15 Ill. Reg. 8566)

Section 240.1390 Records and Reporting Requirements (Recodified) (Source: Recodified to Section 240.990 at 15 Ill. Reg. 8566)

Section 240.1395 Bonds--Blanket Surety Bond (Recodified) (Source: Recodified to Section 240.995 at 15 Ill. Reg. 8566) SUBPART N: ISSUANCE OR TRANSFER OF PERMIT TO OPERATE

Section 240.140 Notice of Noncompliance a) When an inspector or other authorized employee or agent of the Department determines that any permittee has not fully complied with any requirement of the Act or this Part or any permit condition, and the inspector or other authorized em…

Section 240.1400 Definitions As used in this Subpart: "Current Permittee" means the individual or entity required to hold the permit or to whom the permit has been issued and who is the owner of the right to drill and/or produce the well or wells, possesses the full rights and re…

Section 240.1405 Transfer of Management (Repealed) (Source: Repealed at 16 Ill. Reg. 2576, effective February 3, 1992)

Section 240.1410 Applicability a) The provisions of this Subpart apply to all assignments, transfers (whether voluntary or involuntary) and sales of the interest of the individual or entity required to hold and to whom the permit is issued (permittee), including: 1) a change of o…

Section 240.1420 Notification of Transfer a) The current permittee shall provide notification to the Department and new permittee, on a form prescribed by the Department, of the assignment, transfer or sale of any permitted well or any well required to be permitted under the Act …

Section 240.1425 Authority of Person Signing Notification of Transfer a) The notification to transfer a permitted well or a well required to be permitted under the Act shall provide information to indicate whether the owner of the right to drill and to operate the well is an indi…

Section 240.1430 Responsibilities of Current Permittee a) The current permittee shall notify the Department and the new permittee of the assignment, transfer or sale on a form prescribed by the Department. A separate form shall be completed for each lease, well or other unit assi…

Section 240.1440 Responsibilities of New Permittee Prior to the Department giving effect to the transfer, the new permittee shall: a) Confirm with the Department and the current permittee the acceptance of the transfer or sale on a form prescribed by the Department. The form shal…

Section 240.1450 Authority of Person Signing Notification of Acceptance a) The notification of acceptance shall be signed by the new permittee or by the new permittee's authorized representative. b) If the new permittee is an individual, the notification of acceptance shall be si…

Section 240.1460 Conditions for and Effect of Issuance or Transfer of Permit to Operate a) When the Department receives the current permittee's notice of transfer, the wells listed in the notice of transfer shall be transferred to the new permittee's well list and the new permitt…

Section 240.1465 Condition for and Effect of Transfer of PRF Wells a) Upon review and acceptance of the transfer documents and prior to approval of the transfer request, the new permittee shall be required to: 1) pay a salvage value for the downhole well equipment as follows (wel…

Section 240.1470 Revocation of Permit to Operate a) The Department may revoke a permit to operate if: 1) The transfer of the permit to operate was issued in error; 2) The new permittee fails to maintain permit conditions; or 3) The new permittee is not in compliance with Section …

Section 240.1480 Involuntary Transfer a) The Department may administratively transfer a permit to a person required to be the permittee under the Act when the Department determines, based on records or documents of title submitted to or collected by the Department that may indica…

Section 240.1485 Administrative Record Correction a) The Department may administratively correct a permit to reflect the person or entity required to be the permittee under the Act, when the Department determines, based on Department records, that the transfer was not made by the…

Section 240.1490 Transfer Hearings a) A current or new permittee may request a hearing to challenge a permit transfer or denial decision if that hearing is requested in writing within 30 days after the date of the transfer or denial notice. All requests for hearing must be accomp…

Section 240.150 Notice of Violation a) When an inspector or other authorized employee or agent of the Department determines that any permittee, or any person engaged in conduct or activities required to be permitted under the Act is in violation of any requirement of the Act or t…

Section 240.1500 When Required, Amount and When Released a) To Drill, Deepen, Convert or Operate an Oil or Gas Well 1) A bond, in the amount provided in this Section, shall be submitted, along with an application to drill, deepen, convert, operate or transfer a production or Clas…

Section 240.1510 Definitions a) Bond means surety bond or other security in lieu thereof. b) Surety bond means an indemnity agreement in a sum certain payable to the Department, executed by the permittee as principal and which is supported by the guarantee of a corporation author…

Section 240.1520 Bond Requirements a) Form Bonds shall be in such form and content as the Department prescribes, payable to the "Illinois Department of Natural Resources." b) Conditions Generally 1) Each bond shall conform with the requirements of the Act and this Part and with t…

Section 240.1530 Forfeiture of Bonds a) A permittee's failure to comply with the Department's order to plug, replug or repair a well, or to restore a well site, within thirty (30) days of the issuance of such order constitutes grounds for bond forfeiture, pursuant to Sections 6 a…

Section 240.155 Civil Complaint a) The Department may elect to file an action with the Attorney General with or without issuing a notice of violation pursuant to Section 240.150. b) In accordance with Section 11 of the Act, the Department through the Attorney General shall bring …

Section 240.160 Director's Decision a) Upon receipt of a notice of violation, the Director shall conduct an investigation and may affirm, vacate or modify the notice of violation. In determining whether to take action in addition to remedial action necessary to abate a violation,…

Section 240.1600 Definitions The following definitions are applicable to this Subpart: "Abandoned Well" means: A well: for which the underlying lease has been released in writing by the lessee or has been declared forfeited or invalid by a court order, the order is final and the …

Section 240.1610 Plugging Leaking or Abandoned Wells a) If the Department finds, upon inspection, that a well drilled for the exploration, development, storage or production of oil or gas, or for injection, saltwater disposal, saltwater source, observation, and geological or stru…

Section 240.1620 Plugging Orphaned Wells a) If upon review of Department records a determination is made that no permittee can be located, no bond exists and no fees have been paid in accordance with Section 19.7 of the Act, the well shall be deemed an orphaned well and placed in…

Section 240.1625 Plugging Abandoned Wells Through Landowner Grant a) The provisions of this Section apply to: 1) Wells determined to be abandoned in accordance with this Subpart P and placed into the Department Plugging and Restoration Program. 2) Abandoned wells and associated w…

Section 240.1630 Emergency Well Plugging, Emergency Repair Work, Emergency Projects a) If the Department determines that any condition or practice exists, or that any person or permittee is in violation of any requirement of the Act, this Part or any permit condition, and this pr…

Section 240.1635 Emergency Well Plugging and Emergency Project Reimbursement a) If the Department determines that any condition or practice exists, as specified in Section 240.1630 of this Part, endangers the waters of the U.S. as a result of a crude oil spill or indicates the po…

Section 240.1640 Repayment of Funds a) The permittee must reimburse PRF for all funds expended from the PRF, excepting OPA reimbursed monies, for repair, plugging, restoration or remediation work on the permittee's wells or sites, together with all interest accrued, as provided u…

Section 240.1650 Authorization for a Permittee to Operate Its Wells Placed into the Plugging and Restoration Fund Program for Abandonment a) A permittee shall not work on, operate or produce any of its wells or facilities that have been placed into the PRF Program without first o…

Section 240.1660 Authorization for a Permittee to Operate Their Wells Placed into the Plugging and Restoration Fund Program for Non-payment of Annual Well Fees a) A permittee shall not work on, operate or produce any of its wells or facilities that have been placed into the PRF P…

Section 240.170 Cessation Order (Repealed) (Source: Repealed at 22 Ill. Reg. 8422, effective April 28, 1998)

Section 240.1700 Fee Liability a) The Department shall assess annual well fees during each fiscal year for all permits of record as of July 1, including wells reported to be transferred pursuant to Subpart N but not yet approved for transfer by the Department. The permittee for e…

Section 240.1705 Amount of Assessment Well fees shall be assessed for total permits issued to the permittee as of July 1 of each year as follows: a) $100 per well for the first 100 wells attributed to each permittee; b) $75 per well for any wells in excess of 100 wells attributed…

Section 240.1710 Annual Permittee Reporting a) Permittees are required to submit, on a form prescribed by the Department, an annual verification of address and status. The address submitted under this Section will be used by the Department to provide notice of any hearings or oth…

Section 240.1720 When Annual Well Fees are Due Annual well fees shall become due on September 1 of each year and shall be deemed delinquent if not paid by November 1 of each year. The Department may cease mailing the annual well fee bill to a permittee if those fees have been unp…

Section 240.1730 Opportunity to Contest Billing a) Permittees may contest the amount of fees or the wells for which the permittee is listed as the permittee of record as of July 1 by submitting a written objection to the billing on or before October 30 of each year. The objection…

Section 240.1740 Delinquent Permittees Fees not received by November 1 of each year shall be deemed delinquent and the wells covered by the fees shall be determined to be abandoned in accordance with Section 240.1600 and subject to plugging in accordance with Section 240.1610. (S…

Section 240.180 Enforcement Hearings a) A person or permittee shall have 30 days from the date of service of the Director's decision to request a hearing. (Section 8a of the Act) A person or permittee seeking to contest any Director's decision in which a civil penalty has been as…

Section 240.1800 Applicability The provisions of this Subpart apply to the design, installation, testing, construction, extension, replacement, maintenance, groundwater protection requirements and operating requirements of Underground Gas Storage Fields; the drilling and conversi…

Section 240.1805 Definitions "Act", for the purposes of this Subpart, means the Illinois Underground Natural Gas Storage Safety Act [415 ILCS 160]. "Downhole" means the portion of an underground natural gas storage facility from the first flange attaching the wellhead to the pipe…

Section 240.1810 Submission of Underground Gas Storage Field Map a) Each gas storage operator shall submit to the Department, by January 1, 2020, a map for every underground gas storage field in operation on October 15, 2019. For an underground gas storage field that was not in o…

Section 240.1820 Permit Requests in a Underground Gas Storage Field a) When the proposed location to drill, deepen, convert or amend an oil or gas production or Class II well, as defined in Subparts B and C, or a test hole, as defined in Subpart L, occurs within the limits of an …