The bill amends various sections of the Revised Code concerning the management and leasing of oil and gas resources in Ohio, introducing new provisions related to federal mineral royalty payments. A new section, 131.52, defines "federal mineral royalty" and "county of origin," and requires the state treasurer to deposit all federal mineral royalties into a newly created federal mineral royalty clearing fund. This fund will distribute royalties to counties based on the origin of mineral production, allowing them to utilize these funds for planning and public services. Additionally, the bill revises the leasing process for oil and gas formations on state-controlled land, mandating good faith leasing and outlining a nomination and bidding process while ensuring confidentiality until a selection is made.

The legislation also establishes stricter regulations for drilling permits, including detailed application requirements and notification obligations for nearby property owners. It introduces a nonrefundable filing fee for expedited permit requests and limits the number of such applications per year. Furthermore, the bill enhances safety measures by specifying liability insurance requirements for well owners and detailing the management of orphaned wells, including procedures for plugging and the rights to carbon credits from these wells. Overall, the bill aims to streamline the leasing and permitting processes while ensuring environmental protections and responsible management of Ohio's natural resources.

Statutes affected:
As Introduced: 1509.01, 1509.02, 1509.06, 1509.07, 1509.071, 1509.28, 1509.31, 1509.38, 2305.041, 5577.02, 5727.02
As Reported By Senate Committee: 155.33, 155.34, 1503.35, 1509.01, 1509.02, 1509.03, 1509.06, 1509.07, 1509.071, 1509.13, 1509.22, 1509.221, 1509.23, 1509.28, 1509.31, 1509.36, 2305.041, 5577.02, 5727.02, 343.30, H.B, 131.52
As Passed By Senate: 155.33, 155.34, 1503.35, 1509.01, 1509.02, 1509.03, 1509.06, 1509.07, 1509.071, 1509.13, 1509.22, 1509.221, 1509.23, 1509.28, 1509.31, 1509.36, 2305.041, 5577.02, 5727.02, 343.30, H.B, 131.52