CHAPTER 2. TEST HOLE POLLUTION CONTROL AND WASTE
IC 14-38-2
Chapter 2. Test Hole Pollution Control and Waste
IC 14-38-2-1
Applicability of chapter
Sec. 1. This chapter applies to a person who desires to drill atleast one (1) test hole:
(1) for fluid disposal investigation, mineral resourcesinvestigation, engineering projects investigation, or geologicinvestigation; and
(2) to a depth of at least two hundred (200) feet below groundsurface elevation at the test hole site.
As added by P.L.1-1995, SEC.31.
IC 14-38-2-2
Public interest in preventing pollution, impairment, and waste ofnatural resources
Sec. 2. It is in the public interest for the state to provide the meanswhereby test holes for or in connection with fluid disposalinvestigations, mineral resources investigations, engineering projectsinvestigations, or geologic investigations are drilled, used, andplugged in a manner that prevents pollution, impairment, and wasteof natural resources.
As added by P.L.1-1995, SEC.31.
IC 14-38-2-3
"Plug" or "plugging" defined
Sec. 3. As used in this chapter, "plug" or "plugging" means thestopping of the flow or migration of oil, gas, water, or other fluid ormaterial up or down a test hole.
As added by P.L.1-1995, SEC.31.
IC 14-38-2-4
"Test hole" defined
Sec. 4. As used in this chapter, "test hole" means an exploratoryhole, except for coal exploration, drilled for the purpose of obtaininginformation and data on the character, composition, sequence,thickness, age, and correlation of underground strata and formationsfor at least one (1) of the following and no other purposes:
(1) The feasibility of an area for fluid disposal.
(2) The existence, extent, and characteristics of an undergroundmineral deposit or deposits.
(3) The suitability of underground formations for use in or as afoundation for engineering projects or works.
(4) Expanding the store of scientific knowledge of the geologyof an area.
As added by P.L.1-1995, SEC.31.
IC 14-38-2-5
Enforcement by department Sec. 5. The department shall carry out and enforce this chapter.
As added by P.L.1-1995, SEC.31.
IC 14-38-2-6
Application and permit fee
Sec. 6. A person must do the following before drilling a test hole:
(1) File a written application for a permit with and receive apermit from the commission. A single permit may authorize thedrilling of more than one (1) test hole.
(2) Submit a permit fee of one hundred dollars ($100) payableto the department.
As added by P.L.1-1995, SEC.31.
IC 14-38-2-7
Duties of commission
Sec. 7. The commission shall do the following:
(1) Adopt rules and orders necessary to administer this chapter.
(2) Hold hearings at any place in Indiana for the purpose ofadministering this chapter. A hearing may be conducted by amember of the commission or by the officer, agent, or employeethat is designated by the commission. However, a proposedfinding is not valid unless the commission approves the finding.
(3) Prescribe and adopt the form of an application for a permitto be filed by an applicant.
(4) Except as provided by subdivision (5), require a persondrilling a test hole under this chapter to furnish at a reasonabletime and place that the commission specifies the following:
(A) A copy of the driller's log of the test hole.
(B) A copy of a geophysical log taken in the drilling of thetest hole.
(C) A copy of the drilling record.
(D) Typical drill cuttings or cores, if taken.
(5) Upon written application certifying that the withholding ofthe information is necessary for protection of the permittee:
(A) the commission shall excuse the permittee fromfurnishing the items required by subdivision (4); and
(B) the permittee shall furnish the location of each test holeby county, township, range, and quarter-quarter section,including the proper legal description and the size and depthof the hole.
(6) Require a person filing for a permit to drill a test hole,except for state or federal agencies, to execute and file with thecommission:
(A) a bond not exceeding one thousand dollars ($1,000) foreach test hole drilled; or
(B) a blanket bond not exceeding five thousand dollars($5,000) for all test holes drilled by the applicant during theduration of the bond;
to provide for compliance with this chapter and the rules of thecommission adopted under this chapter with respect to the
plugging of the test holes. The bond must be in the formapproved by the commission, and the bond shall be renewedand continued in effect until the conditions have been fullycomplied with.
(7) Enter upon and inspect, at any reasonable time and by anymember of the commission or the commission's agent, anylocation where test holes are being or have been drilled for fluiddisposal, mineral resources investigation, engineering projects,or geologic information for the purpose of ascertaining whetherthis chapter and the rules and orders of the commission arebeing or have been complied with, including information on thedrilling or completion depth of a test hole.
As added by P.L.1-1995, SEC.31.
IC 14-38-2-8
Expiration of permit
Sec. 8. A permit issued under this chapter expires one (1) yearfrom the date of issuance unless a test hole is drilled within one (1)year.
As added by P.L.1-1995, SEC.31.
IC 14-38-2-9
Issuance of permit
Sec. 9. (a) Subject to subsection (b), if an applicant for a permitto drill or deepen a test hole has complied with this chapter and therules of the commission, the commission shall issue a permit.
(b) The commission may refuse to issue a permit if the drilling ofthe test hole would violate this chapter or rules adopted under thischapter.
As added by P.L.1-1995, SEC.31.
IC 14-38-2-10
Plugging and abandoning hole
Sec. 10. Upon the completion of drilling, a permittee shall plugand abandon the hole in a manner that confines permanently allfluids or materials in the separate strata originally confining thefluids or materials by the use of mud-laden fluid, cement, or plugsused:
(1) singly; or
(2) in combinations approved by the commission.
As added by P.L.1-1995, SEC.31.
IC 14-38-2-11
Notice before plugging
Sec. 11. A permittee may not begin plugging procedures until thepermittee has given notice to the commission or the commission'sdesignated representative by personal oral or written notice,telephone, or telegram.
As added by P.L.1-1995, SEC.31.
IC 14-38-2-12
Affidavit of plugging and abandoning
Sec. 12. (a) The commission's designated representative or theauthorized representative of the permittee who supervises theplugging of the test hole shall make and furnish to the permittee anaffidavit to the effect that the test hole has been plugged andabandoned in accordance with this chapter, reciting in the affidavitthe pertinent information that is prescribed by the commission.
(b) The commission representative or the authorizedrepresentative of the permittee shall furnish to the commission anexact copy of the affidavit.
(c) The commission shall permanently retain the affidavit, whichmust be open to inspection by all persons.
As added by P.L.1-1995, SEC.31.
IC 14-38-2-13
Actions to restrain violations
Sec. 13. If it appears that a person is violating or is about toviolate this chapter or the rules and orders of the commissionadopted under this chapter or under IC 13-4-5 (before its repeal), thecommission may, in the name of the state of Indiana through theattorney general, bring an action against the person in the circuit orsuperior court of the county in which:
(1) the land involved is located;
(2) the violator resides; or
(3) the authorized agent of a nonresident violator resides;
to restrain the person from continuing the violations.
As added by P.L.1-1995, SEC.31.
IC 14-38-2-14
Secretary of state as agent for service of process upon nonresident
Sec. 14. The ownership, operation, or other interest by anonresident or by a nonresident's authorized agent in a test hole inIndiana is considered equivalent to an appointment by thenonresident of the secretary of state to be the nonresident's attorney,upon whom may be served all process in an action or a proceedinggrowing out of the operation or ownership by the nonresident or thenonresident's agent of a test hole in Indiana. The operation orownership indicates the nonresident's agreement that the processserved against the nonresident is of the legal force and validity as ifserved upon the nonresident personally, unless the nonresidentmaintains on file with the commission the designation of a residentagent for service of process.
As added by P.L.1-1995, SEC.31.
IC 14-38-2-15
Filing action against nonresident; service of process; affidavit;continuances
Sec. 15. (a) An action against a nonresident may be filed in thecounty: (1) of residence of the plaintiff; or
(2) where the test hole is located;
at the election of the plaintiff.
(b) Service of process shall be made by leaving a copy of theprocess, with a fee of two dollars ($2) for the defendant to be served,with the secretary of state. The service is sufficient service upon anonresident if:
(1) notice of the service and a copy of the process areimmediately sent by registered mail to the defendant; and
(2) the defendant's return receipt is appended to the originalprocess and filed in court.
(c) If the defendant refuses to accept or claim registered mail, thesecretary of state shall return the registered mail to the plaintiff or tothe plaintiff's attorney. The registered mail shall be appended to theoriginal process, together with an affidavit of the plaintiff or theplaintiff's attorney or agent to the effect that the summons was:
(1) delivered to the secretary of state, together with a fee of twodollars ($2); and
(2) returned unclaimed by the United States Postal Service.
(d) The affidavit, together with the returned envelope and thesummons, is considered sufficient service upon the nonresidentdefendant.
(e) The court in which the action is brought may ordercontinuances that are reasonable to afford the defendant anopportunity to defend the action.
As added by P.L.1-1995, SEC.31.
IC 14-38-2-16
Department, person, or agency entering land to plug, replug, orrepair test hole
Sec. 16. (a) This section does not do any of the following:
(1) Relieve a person otherwise legally responsible from anobligation to plug, replug, or repair a test hole.
(2) Limit the authority of the commission to require the properplugging, replugging, or repair of a test hole.
(b) This section and sections 17 through 20 of this chapter are asupplemental remedy if any of the following conditions exist:
(1) A person obligated to plug, replug, or repair a test hole failsto do so.
(2) The identity of the obligated person cannot be determined.
(c) If:
(1) after notice and hearing the department finds that a test holedrilled has been abandoned and:
(A) is leaking; or
(B) may result in the leaking of;
fluid into a fresh water formation or onto the surface of the landin the vicinity of the test hole; and
(2) after thirty (30) days from the date of the finding by thedepartment the test hole has not been properly plugged,replugged, or repaired to remedy the situation;the department or a person or an agency authorized by order of thedepartment may enter upon the land upon which the test hole islocated and plug, replug, or repair the test hole as is reasonablyrequired to remedy the condition.
As added by P.L.1-1995, SEC.31.
IC 14-38-2-17
Entry onto land without notice or hearing
Sec. 17. If:
(1) an emergency exists; and
(2) the department determines that irreparable injury will resultunless immediate action is taken;
the department may enter or authorize the entry upon the land byorder of the department without notice or hearing for the purpose oftaking the temporary remedial action that the department considersnecessary to prevent or minimize the injury pending the giving ofnotice and hearing. The operation shall be conducted in the mannerprescribed by the department.
As added by P.L.1-1995, SEC.31.
IC 14-38-2-18
Liability of persons entering land to plug, replug, or repair testhole
Sec. 18. (a) This section applies to a person who:
(1) enters upon the land on which a test hole is located to plug,replug, or repair the test hole; or
(2) supports or contributes to the action under the authority andin accordance with the order of the department.
(b) A person:
(1) is not liable and may not be held responsible for anydamages resulting from operations reasonably necessary orproper to plug, replug, or repair the test hole, except damagesto growing crops and improvements;
(2) has not assumed responsibility for future remedial work onthe test hole; and
(3) is not liable in damages or otherwise for conditionssubsequently arising from or in connection with the test hole.
As added by P.L.1-1995, SEC.31.
IC 14-38-2-19
Remedying condition of test hole not admission of liability ordischarge of action
Sec. 19. The fact that a person has initiated or supported aproceeding before the department or has remedied or attempted toremedy the condition of a test hole under this chapter:
(1) is not an admission of liability and may not be received inevidence against the person in an action or a proceeding inwhich responsibility for or damages from:
(A) surface or subsurface pollution; or
(B) injury to a fresh water, an oil, a gas, or a mineral bearing
formation;
is or may become an issue; and
(2) does not release or discharge an action, a cause of action, ora claim against the person in favor of a third person for damagesto property resulting from:
(A) surface or subsurface pollution; or
(B) injury to a fresh water, an oil, a gas, or a mineral bearingformation;
to the extent that the action, cause of action, or claim preexistedthe initiation or support of the proceeding or the remedying orattempted remedying of the condition of the test hole.
As added by P.L.1-1995, SEC.31.
IC 14-38-2-20
Cause of action for plugging, replugging, or repairing test hole
Sec. 20. (a) A person who did not have an obligation to plug,replug, or repair a test hole, but who does so under this chapter, hasthe following:
(1) A cause of action against the person who was obligated bylaw to properly plug, replug, or repair the test hole for thereasonable cost and expense incurred in plugging, replugging,or repairing the test hole.
(2) A lien enforceable upon the interest of the obligated personin and to the equipment located on the test hole to the extent ofthe reasonable cost and expense.
(b) This section does not assign or impute any liability orobligation upon the owner of the land upon which the test hole islocated, except if the owner is the person who was granted a permitto drill the test hole.
As added by P.L.1-1995, SEC.31.
IC 14-38-2-21
Violations
Sec. 21. (a) A person who knowingly violates this chaptercommits a Class C infraction.
(b) Each day of violation constitutes a separate infraction.
As added by P.L.1-1995, SEC.31.