A presentation at the 2015 Midwest Environmental Compliance Conference, May 13-14, 2015, Overland Park, KS

1. Presented by:
Thomas Beeching, CRA
Illinois Hydraulic Fracturing Rules
2nd Annual Midwest Environmental Compliance Conference
Overland Park, KS
May 13, 2015

2. 1.0 The Law and The Rule
The Law
 Illinois Hydraulic Fracturing Regulatory Act (HFRA),
June 17, 2013 (225 ILCS 732/1-1)
The Rule
 62 IAC 245,
December 5, 2014

3.  The HFRA – “Strongest package of
regulations in the Country”
– Ann Alexander, Senior Attorney, Chicago Office,
Natural Resources Defense Council
 Complexity of the Rule
– California’s draft regulations for hydraulic fracturing
were contained in 13 pages. Illinois regulations
required 130 pages.
1.0 The Law and The Rule

4. 2.0 Overview of Fracking Regulations in Illinois
 The Illinois Department of Natural Resources will have
the primary authority to administer the Act. Other
Groups with Regulatory Involvement include:
– Illinois State Geological Society
– Illinois State Water Survey
– Illinois State Fire Marshal
– Illinois Environmental Protection Agency
 The HFRA vs. the Illinois Gas and Oil Act (IGOA)
– If conflict exists, the HFRA takes precedence over the IGOA

5. 2.0 Overview of Fracking Regulations in Illinois
Applicability
 Pertains to High Volume Horizontal Hydraulic
Fracturing (HVHHF) operations in which:
– > 80,000 gallons – Stimulant (single stage); or,
– > 300,000 gallons – Stimulant (all stages)
 Medium Volume Horizontal Hydraulic
Fracturing Operations (MVHHF) operations in
which:
– > 80,000 gallons – Stimulant (all stages) and
– < 300,000 gallons – Stimulant (all stages).

6. 2.0 Overview of Fracking Regulations in Illinois
 The original HFRA signed into law by Governor Pat Quinn
included:
– Well construction standards
– Chemical Disclosure Standards (posted by IDNR)
– Standards placing health needs above privacy concerns
– Natural gas must be captured and used
– Trade secret claims can be challenged
– Citizen law suits
– Public hearings and appeals
– Open-air ponds prohibited (wastewater [WW] must be stored in closed tanks)
– WW must be tested for dangerous chemicals
– Wells must be closed if fracking fluids are released outside of shale rock
formation
– Baseline and periodic post-frack testing of water
– Mandatory setbacks from water sources
– Liability insurance provisions for environmental and health damages

7. 2.0 Overview of Fracking Regulations in Illinois
 The HFRA Rule published in December 2014 included
some modifications:
– WW can be stored in open-air ponds for extended periods of
time if closed tanks could not be emptied expeditiously
– Companies must explain why it is not economically feasible to
capture and/or use escaping gas

8. 3.0 Setbacks and Prohibitions
Fracking Wells
 No well may be located as follows:
– Within 500 feet of any residence or place of worship (w/out written
agreement)
– Within 500 feet of any school, hospital, or licensed home facility
– Within 500 feet of surface location of existing water well or spring used for
human (or domestic) consumption
– Within 300 feet of a perennial stream or ordinary high water mark of any
river, natural or artificial lake, pond, or reservoir
– Within 750 feet of a natural preserve or a site listed on the Register of Land
and Water Resources
– Within 1,500 feet of a surface water or groundwater intake of a public
water supply
 It is unlawful to discharge hydraulic fracturing fluid, produced water,
BTEX, diesel, or petroleum distillates into fresh water
 It is unlawful to perform high volume horizontal hydraulic fracturing
operations by knowingly or recklessly injecting diesel

9. 4.0 Required Permits/Information
 A permit is required to drill, deepen, or convert a horizontal well
where HVHHF operations are planned
 Permit Requirements- Applicant must first register with the IDNR, 30
days prior to applying for a permit.
– Registration Form must provide:
– Name, address and legal status of the registrant and all subsidiaries or
affiliates
– Full disclosure of any serious violations w/in past 5 years
– Proof of insurance to cover injuries, damages or loss related to pollution or
diminution in the amount of $5,000,000
 Upon successful registration, the applicant will receive a HVHHF
registration number which must be used when making application
for a HVHHF Permit. This registration number must be renewed
every two years on, or before, September 1.

10. 4.0 Required Permits/Information
 Every applicant for a permit must provide the following
information to the IDNR on the requisite permit
application form
– Name, email address, and address of applicant and the HVHHF
registration number
– The proposed well name, location, and legal description of the
well, well site, and its unit area (PE/PG certified)
– A statement certifying that the well site is in compliance with
setbacks (property boundaries)
– A detailed description of the proposed well to be used for
hydraulic fracturing
– The estimated depth and elevation of the well and the lowest
potential fresh water along the proposed wellbore

11. 4.0 Required Permits/Information
 Detailed description of the proposed HVHHF
operations, including, but not limited to:
– Geological formation name affected by the fracking
operations
– Anticipated surface treating pressure range
– Maximum anticipated injection treating pressure
– Estimated or calculated fracture pressure of the producing and
confining zones
– Planned depth of all proposed perforations or depth to the top
of the open hole section
 Scaled plat maps, diagrams, or cross-sections - all
known wells within 750 feet of the horizontal well bore
that penetrated within 400 feet of the formation to be
stimulated

12. 4.0 Required Permits/Information
 A chemical disclosure report that will include:
– Total volume of water anticipated to be used in hydraulic
fracturing treatment of the well
– Each hydraulic fracturing additive to be used
– Each chemical anticipated to be added to the base fluid
– The concentration in the base fluid of each chemical to be
added to the base fluid
– A master list of chemicals on file with IDNR

13. 4.0 Required Permits/Information
 A certification of compliance with the Water Use Act of
1983 and applicable regional water supply plans
 Owner information:
– Names and addresses of all owners of real property within 1,500
feet of the proposed well site as disclosed by the County
Recorders Office
 Public Notice Drafts
 Restoration Statement (strategy for reclamation)
 Proof of Insurance –$5 million per occurrence to cover
injuries, damages, or losses related to pollution
 Applicant Disclosure – disclosure of any conviction or finding
occurring after application was submitted
 Nine separate plans

14. 5.0 Required Plans
 Water Source Management Plan – a fresh water withdrawal
and management plan. Plan must identify the following:
– Name, location (lat./long.), volume, anticipated frequency of
withdrawal, methods used to minimize withdrawals, and
methods to minimize impacts to aquatic life
 Hydraulic Fracturing Fluids and Flowback Plan
 A Well Site Safety Plan
- Emergency response arrangements
 Containment Plan – description of containment practices
and equipment.
 Directional Drilling Plan

15. 5.0 Required Plans
 Casing and Cementing Plan
 Traffic Management Plan
 Restoration Statement – Reclamation Plan
 Water Quality Monitoring Work Plan – PE/PG
Certification
– Ensure accurate and complete sampling/testing of area
groundwater supply wells. This may be the most significant part
of the new permit requirements!

16. 6.0 Filing and IDNR Review
 The hydraulic fracturing permit shall be accompanied by a
bond in the amount of $50,000 per permit or a blanket bond
of $500,000 for all permits
 Each application for a permit under the HFRA shall include a
non-refundable fee of $13,500
 Permit application shall be submitted to the IDNR in both
electronic (searchable format) and hard copy version
 Pre-notification of permit filing (5 business days)
 Post permit application on website within 5 days of receipt
 The IDNR shall have 60 calendar days after it receives the
permit application to approve it or reject it, or send it back
for additional information

17. 7.0 Public Notice and Comment
 Applicants shall mail specific requisite public notices by certified
mail within 3 calendar days after submittal of the permit
- Notices to all property owners within 500 feet of the proposed well site
and to each municipality and county in which the well site is to be
located
 Applicants must provide general public notice by publication
– Once each week for 2 consecutive weeks beginning no later than 3
calendar days after submittal of the permit
 Public comment period begins 7 calendar days after IDNR-receipt
of permit application and lasts for 30 days
 During public comment period, any person may file written
comments to the IDNR concerning any portion of the permit
application
 Provisions for filing a written objection to the permit:
– demonstrate that a party has an interest that will be significantly
affected

18. 8.0 Permit Issuance
 Permit shall be reviewed and issued by the IDNR if the
following are demonstrated:
– Well location restrictions (set backs and prohibitions) of the Act
are satisfied
– The applicant satisfies the permit requirements
– The Plans required under the Act are adequate and effective
– Hydraulic fracturing will be conducted in a manner that
protect public health and safety and prevents pollution of any
water source
– Applicant has abated any violation of this Act or of the IOGA
– IDNR will also consider all written comments received during
public comment periods and responses to those comments
provided by the applicant and any historical information about
the company

19. 9.0 Permit Denial
 IDNR may suspend, revoke, or refuse to issue a
hydraulic fracking permit under this Act for one or more
of the following:
– Providing incorrect, misleading, incomplete, or materially
untrue information
– Violating any condition of the permit
– Violating any provision or any regulation
– Unethical or dishonest business practices
– Demonstration of financial irresponsibility
– Revocation of a permit in any other state or province
– Emergency condition exists which could impact health and or
safety of the public

20. 10.0 Well Preparation, Construction, and Drilling
 Applies to all wells that are to be completed using high
volume hydraulic fracturing operations at the site:
– Access roads must be located away from occupied structures,
places of assembly, and property lines of unleased properties
– Topsoil usage
– Piping, conveyances, valves, and tanks must be compatible
with fluids contained
– Site maintenance standards

21. 11.0 High Volume Horizontal Fracking Operation
 Permittee shall comply with the terms of the permit at all times
 IDNR notification at least 48 hours prior to start of fracking activities
 All containment inspections and mechanical integrity tests
required under the HFRA be completed
 All hydraulic fracturing flowback, fluids and produced water must
be stored in above ground tanks
 Reserve pit is only allowed for temporary storage of fracturing
flowback
 Tanks used to contain flowback must be routinely corrosion tested
 Flowback materials must be tested for VOCs, inorganic chemicals,
heavy metals and naturally occurring radioactive material prior to
removal from the site
 Subsurface injection of flowback in accordance with
internal/external mechanical integrity testing and all applicable
IOGA requirements.

22. 11.0 High Volume Horizontal Fracking Operation
 Produced water may be disposed of by injection in a
permitted enhanced oil recovery operation
 Discharge of hydraulic fracturing fluids, hydraulic fracturing
flowback, and produced water into any surface water or
water drainage way is prohibited
 Transportation of hydraulic fracturing fluids, flowback and/or
produced water for disposal must be by a liquid oilfield
waste hauler permitted by the IDNR under Section 8c of the
IOGA
 Spills/releases of hydraulic fracturing fluids, additives, or
flowback must immediately be cleaned up.
- Release > 42 gallons must be reported to the IDNR. If RQ is
exceeded, CERCLA must also be notified.

23. 12.0 Water Quality Monitoring
 Each applicant for a HVHHF permit shall provide the
IDNR with a Work Plan to ensure accurate and
complete sampling and testing. The Work Plan shall
include at a minimum the following:
– Information identifying all water sources within the range of
testing under this section
– A sampling plan and protocol, including notification to the
IDNR at least 7 calendar days prior to sample collection
– The name and contact information of an independent third
party under the supervision of a PE/PG that shall be designated
to conduct sampling to establish a baseline as provided for
under subsection b of this section

24. 12.0 Water Quality Monitoring
– Name and contact information of an independent 3rd party
under supervision of a PE/PG
– Name and contact information of an independent certified
contract laboratory
– Proof of access and the right to test within the area for testing
prescribed
– Identification of practicable contingency measures, including
provisions for alternative drinking water supplies which could be
implemented in the event of pollution of a water source
 Sampling of all water sources within 1,500 feet of the well site prior
to any fracturing activities (baseline)
 Sampling/analysis - minimum of 3 samples for each water source
tested
 Analytical results provided to IDNR and within 7 days of receipt or
to the owner of the water source

25. 12.0 Water Quality Monitoring
 All water sources shall be subjected to retesting in the same
manner at 6 months, 18 months, and 30 months after HVHHF
operations have been completed
 Permittee shall notify the IDNR whenever water quality data
indicates that concentrations exceed the standards or criteria
referenced in the definition of pollution under section I-5 of the
HFRA
 Analytical data for each set of sample shall include the following:
– pH
– TDS, dissolved methane, dissolved propane, dissolved ethane,
alkalinity, and specific conductance
– Chloride, sulfate, arsenic, barium, calcium, chromium, iron,
magnesium, selenium, cadmium, lead, manganese, mercury, and
silver
– BTEX
– Gross alpha and beta particles

26. Contact Information
Questions regarding Illinois Fracking Rules?
Please contact:
Thomas Beeching—
tbeeching@CRAworld.com