415 ILCS 160/ Illinois Underground Natural Gas Storage Safety Act.

(415 ILCS 160/1)

Sec. 1. Short title. This Act may be cited as the Illinois Underground Natural Gas Storage Safety Act.

(Source: P.A. 100-1172, eff. 1-4-19.)

(415 ILCS 160/5)

Sec. 5. Definitions. As used in this Act, unless the context otherwise requires:

"Commission" means the Illinois Commerce Commission.

"Contaminant" means gas, salt water, or any other deleterious substance released from an underground natural gas storage facility.

"Department" means the Department of Natural Resources.

"Director" means the Director of Natural Resources.

"Downhole" means the portion of the underground natural gas storage facility from the first flange attaching the wellhead to the pipeline equipment and continuing down the well casing to and including the storage reservoir.

"Federal Act" has the meaning given to that term in the Illinois Gas Pipeline Safety Act.

"Gas" means natural gas.

"Notice of probable violation" means a written notice, satisfying the criteria set forth in Section 35, given by the underground natural gas storage safety manager to a person who operates an underground natural gas storage facility that identifies a failure of such person to comply with the provisions of this Act or the provisions of 49 U.S.C. Chapter 601 concerning underground natural gas storage facilities, or any Department order or rule issued under this Act, and may include recommendations for a penalty in connection therewith, subject to the terms of this Act.

"Person" means an individual, firm, joint venture, partnership, corporation, company, limited liability company, firm, association, municipality, cooperative association, or joint stock association. "Person" includes a trustee, receiver, assignee, or personal representative thereof.

"Underground natural gas storage facility" means a gas pipeline facility that stores natural gas in an underground facility, including a depleted hydrocarbon reservoir, an aquifer reservoir, and a solution-mined salt cavern reservoir.

"Underground natural gas storage safety manager" means the manager of the Department's Underground Natural Gas Storage Safety Program or other staff of the Department assigned to underground natural gas storage safety issues.

"Verified facility release" means a suspected or known natural gas or contaminant release that: (i) is regulated by the Department; (ii) originates from a natural gas storage facility; and (iii) is confirmed by chemical analysis to have occurred or be occurring within the perimeter of the underground natural gas storage facility or within one-quarter mile of that perimeter.

(Source: P.A. 103-120, eff. 1-1-24.)

(415 ILCS 160/10)

Sec. 10. Minimum safety standards.

(a) As soon as practicable, but not later than 3 months after the effective date of this Act, the Department shall adopt rules establishing minimum safety standards for underground natural gas storage facilities. Such rules shall be at least as inclusive, stringent, and compatible with the minimum safety standards adopted by the Secretary of Transportation under 49 U.S.C. 60141. Thereafter, the Department shall maintain such rules so that the rules are at least as inclusive, stringent, and compatible with the minimum standards from time to time in effect under 49 U.S.C. 60141.

(b) Standards established under this Section may apply to the design, installation, inspection, testing, construction, extension, operation, replacement, and maintenance of underground natural gas storage facilities. In accordance with 49 U.S.C. 60104(b), standards affecting the design, installation, construction, initial inspection, and initial testing are not applicable to underground natural gas storage facilities in existence on the date the standards are adopted. If the Department finds that a facility is hazardous to life or property, it may require the person operating the facility to take the steps necessary to remove the hazard.

(c) Standards established by the Department under this Act shall, subject to subsections (a) and (b), be practicable and designed to meet the need for underground natural gas storage facility safety. In prescribing the standards, the Department shall consider 49 U.S.C. 60141(b).

(Source: P.A. 100-1172, eff. 1-4-19.)

(415 ILCS 160/15)

Sec. 15. Waiver. Subject to 49 U.S.C. 60118(d), the Department may, upon application by any person operating an underground natural gas storage facility, waive in whole or in part compliance with any standard established under this Act if it determines that such a waiver is consistent with the safety of underground natural gas storage facilities.

(Source: P.A. 100-1172, eff. 1-4-19.)

(415 ILCS 160/20)

Sec. 20. Inspection and maintenance plan. A person who operates an underground natural gas storage facility shall file with the Department a plan for inspection and maintenance of the downhole portion of each underground natural gas storage facility owned or operated by the person, as well as any changes in the plan, in accordance with rules prescribed by the Department. The Department may, by rule, also require the person to file the plan for approval. If the Department finds, at any time, that the plan is inadequate to achieve safe operation, the Department shall, after notice and opportunity for a hearing, require the plan to be revised. The plan required by the Department under this Section must be practicable and designed to meet the need for the safety of underground natural gas storage facilities. In determining the adequacy of a plan, the Department shall consider: (i) relevant available underground natural gas storage facility safety data; (ii) whether the plan is appropriate for the particular type of facility; (iii) the reasonableness of the plan; and (iv) the extent to which the plan will contribute to public safety.

(Source: P.A. 100-1172, eff. 1-4-19.)

(415 ILCS 160/25)

Sec. 25. Requirements; underground natural gas storage facility operation. A person who operates an underground natural gas storage facility shall: (1) after the date any applicable safety standard established under this Act takes effect, comply with the requirements of such standard at all times; (2) file and comply with the plan of inspection and maintenance required by Section 20; (3) keep records, make reports, provide information, and permit inspection of its books, records, and facilities as the Department reasonably requires to ensure compliance with this Act and the rules established under this Act; and (4) file with the Department, under rules adopted by the Department, reports of all accidents involving or related to the downhole portion of an underground natural gas storage facility.

(Source: P.A. 100-1172, eff. 1-4-19.)

(415 ILCS 160/27)

Sec. 27. Verified facility release. The owner or operator of an underground natural gas storage facility shall create procedures for a suspected natural gas leak or suspected unintentional release from an underground natural gas storage facility that is identified by either the Department or the owner or operator. The procedures shall contain guidance to direct the owner or operator to, if possible, collect the gas from the suspected leak or suspected unintentional release for purposes of testing and verifying the source of the gas.

Collecting and testing shall be performed by an independent contractor at the expense of the owner or operator. Testing of the gas shall be performed using either gas chromatography or isotopic analysis to determine if the gas composition has markers of thermogenic origins that are indicative of pipeline gas. If the quantities released are insufficient to perform a test or if quantities are insufficient to confirm a leak exists, the owner or operator shall notify the Department, and no further action related to the collection and testing of the gas is required by the owner or operator. Previous failed attempts to collect and test the gas at the same site shall not remove the owner's or operator's responsibility to collect the gas and verify the source of the gas if a sufficient amount of gas for collection and testing is available later.

The owner or operator may acknowledge that the leak or unintentional release is from the underground natural gas storage facility and treat it as a verified facility release in lieu of performing collection and testing.

The owner or operator must have procedures to be used if the gas is identified or conceded to be a verified facility release. The procedures shall provide guidance on when atmospheric conditions within a dwelling resulting from a verified leak pose health or hazard issues. The owner or operator shall offer, at the owner's or operator's expense, reasonable lodging and accommodation as determined by the owner or operator to those living in the domicile for the duration of the health or hazard issue.

The owner or operator shall perform sampling at a frequency as determined by the owner or operator for natural gas in private drinking water wells in the areas determined by the owner or operator impacted by the leak or unintentional release. The owner or operator shall maintain routine monitoring of the areas impacted by the leak or unintentional release as determined by the owner's or operator's procedures.

If natural gas is detected at levels posing health or hazard issues as determined by the Department of Public Health, the owner or operator shall offer and maintain gas water separators, at the owner's or operator's expense, in affected areas impacting the water supply, including domiciles. Where gas water separators are provided, the gas water separators shall be approved and installed in accordance with the Illinois Plumbing License Law, and any rules adopted thereunder, and shall be accompanied by an approved disinfection system or other associated water treatment device necessary to provide potable water to the affected area.

With the property owner's or occupant's consent, the owner or operator of an underground natural gas storage facility shall provide, install, and maintain natural gas detection devices, at the owner's or operator's expense, determined to be appropriate by the owner or operator in the affected areas, including domiciles, to monitor the presence of natural gas. The owner or operator shall maintain and calibrate the devices according to the recommendations, if any, set by the manufacturers of the device. The owner or operator shall provide the device manufacturer's specifications to the property owner or occupant for the specific gas detector, including the installed functions and the alarm levels set on the installed device. The alarm shall be set no higher than 25% of the lower explosive level for methane. If the property owner or occupant denies consent, the owner or operator of the underground natural gas storage facility shall notify the Department, and no further action related to the installation of devices is required by the owner or operator.

The owner or operator shall maintain routine monitoring of the areas impacted by the leak or unintentional release by method and frequency as determined by the owner or operator and create a schedule to be shared with the Department of Natural Resources, the Environmental Protection Agency, and the Department of Public Health. If the Department of Natural Resources, the Environmental Protection Agency, or the Department of Public Health determines that the monitoring schedule is insufficient, then the owner or operator shall defer to the most rigorous recommended schedule. The owner or operator shall undertake a comprehensive inspection to an extent as determined by the owner or operator.

Monitoring of the area impacted shall be maintained for a period after corrective action is completed. The post-correction monitoring period shall end as prescribed in the owner's or operator's procedures or otherwise required by the Department.

(Source: P.A. 103-120, eff. 1-1-24.)

(415 ILCS 160/30)

Sec. 30. Penalties; action for penalties; Department approval of penalties.

(a) A person who violates Section 25 or any rule or order issued under this Act is subject to a civil penalty not to exceed the maximum penalties established by 49 U.S.C. 60122(a)(1) for each day the violation persists.

(b) Any civil penalty may be compromised by the Department or, subject to this Act, by the underground natural gas storage safety manager. In determining the amount of the penalty, the Department shall consider the standards set forth in 49 U.S.C. 60122(b). The final amount of the penalty or the amount agreed upon in the compromise shall be paid or deducted from any sums owing by the State of Illinois to the person charged under the terms and conditions of the notice of probable violation, the agreed compromise, or the Department order, whichever applies, or may be recovered in a civil action in accordance with subsection (c). Unless specifically stated otherwise in the terms and conditions of a compromise agreement, a compromise of a penalty recommended in a notice of probable violation by the person charged shall not be an admission of liability.

(c) Actions to recover penalties under this Act shall be brought in the name of the People of the State of Illinois in the circuit court in and for the county where the cause or part of the cause arose, where the Department has a principal place of business, where the corporation complained of, if any, has its principal place of business, or where the person, if any, complained of resides. All penalties recovered by the State in an action shall be paid to the Underground Resources Conservation Enforcement Fund. The action shall be commenced and prosecuted to final judgment by the Attorney General on behalf of the Department. In all such actions, the procedure and rules of evidence shall comply with the Civil Practice Law and other rules of court governing civil trials.

(d) The Department may proceed under Section 11 of the Illinois Oil and Gas Act, either by mandamus or injunction, to secure compliance with its rules and orders issued under this Act.

(e) A person penalized under this Section is not subject to any other penalty provided in the Illinois Oil and Gas Act for the same action.

(f) If a penalty recommended by the underground natural gas storage safety manager is paid by the person charged in the applicable notice of probable violation in accordance with subsection (b), or in accordance with the terms and conditions of a compromise agreed upon by the person and the underground natural gas storage safety manager, then the underground natural gas storage safety manager shall report to, and request the approval of, the Director for each payment of a recommended penalty or agreed compromise, whichever applies, and shall also post the report on the Department's website as a public document. If the report and request for approval is made to the Director, the Director shall have the power, and is hereby given the authority, either upon the complaint or upon her or his own motion, after reasonable notice has been given within 45 days after the report and request for approval was made, to enter a hearing concerning the propriety of the applicable notice of probable violation, payment, or compromise. If the Director does not exercise this power within the 45-day period, the payment or agreed compromise referenced in the report shall be approved by the Director by operation of law at the expiration of the 45-day period and the notice of probable violation and related investigation shall be closed.

(Source: P.A. 100-1172, eff. 1-4-19.)

(415 ILCS 160/35)

Sec. 35. Notice of probable violation; Department hearing.

(a) As used in this Section, "violation" means a failure to comply with any provision of this Act or any Department order or rule issued under this Act.

(b) After investigation and determination of a probable violation, the underground natural gas storage safety manager may issue a notice of probable violation. The notice of probable violation shall be considered served when sent by first class mail to the person or permittee at his or her last known address or by electronic mail in a manner prescribed by rules adopted by the Department under this Act. Any notice of probable violation issued and served as described in this subsection may also be posted on the Department's website as a public document.

(c) A notice of probable violation shall include, at a minimum, the following: (1) the date the notice of probable violation was issued and served; (2) a description of the violation or violations alleged; (3) the date and location of the safety incident, if applicable, related to each alleged violation; (4) a detailed description of the circumstances that support the determination of each proposed violation; (5) a detailed description of the corrective action required with respect to each proposed violation; (6) the amount of the penalty, if any, recommended with respect to each proposed violation; (7) the applicable recommended deadline for payment of each proposed penalty and for completion of each proposed corrective action; (8) notification that any such recommended deadline may be extended by mutual agreement of the parties for the purpose of facilitating settlement or compromise; and (9) a brief description of the procedures by which any recommended penalty or proposed corrective action may be challenged at the Department or approved pursuant to subsection (f) of Section 30.

(d) Payment in full of each of the recommended penalties and full completion of each of the proposed corrective actions, as identified in the notice of probable violation and in accordance with the terms and conditions described in the notice of probable violation including, without limitation, the respective recommended deadlines described in the notice of probable violation for the payment or completion, shall constitute a final resolution of the notice of probable violation, subject to the approval by the Director of the recommended penalty and payment in accordance with subsection (f) of Section 30.

(e) The person charged in the applicable notice of probable violation shall have 30 days from the date of service of the notice of probable violation to request a hearing. The filing of a request for a hearing shall not operate as a stay of the notice of probable violation.

After receipt of a request, the Department shall provide the person with an opportunity for a formal hearing after giving a notice of not less than 5 days. The hearing shall be conducted by the Director or anyone designated by him or her for that purpose and shall be located and conducted in accordance with the rules adopted by the Department. Failure of the person or permittee to timely request a hearing or, if a civil penalty has been assessed, to timely tender the assessed civil penalty shall constitute a waiver of all legal rights to contest the notice of probable violation, including the amount of any civil penalty. Within 30 days after the close of the hearing record or expiration of the time to request a hearing, the Department shall issue a final administrative order.

(Source: P.A. 100-1172, eff. 1-4-19.)

(415 ILCS 160/40)

Sec. 40. Application; the Illinois Oil and Gas Act. Except as otherwise provided in this Act, the Illinois Oil and Gas Act applies to underground natural gas storage facilities and to persons operating underground natural gas storage facilities.

(Source: P.A. 100-1172, eff. 1-4-19.)

(415 ILCS 160/45)

Sec. 45. Annual certification and report. The Department shall prepare and file with the Secretary of Transportation the initial and annual certification and report required by 49 U.S.C. 60105(a).

(Source: P.A. 100-1172, eff. 1-4-19.)

(415 ILCS 160/50)

Sec. 50. Federal moneys. The Department may apply for, accept, receive, and receipt for federal moneys for the State given by the federal government under the Federal Act for any purpose within the authority of the Department. The Department may also act as an agent for an agency or officer of the federal government for any purpose that is otherwise within the authority of the Department, and the Department may enter into agreements for that purpose with the agency or officer.

(Source: P.A. 100-1172, eff. 1-4-19.)

(415 ILCS 160/55)

Sec. 55. Jurisdiction.

(a) The Department and the Commission shall work cooperatively with each other and with other entities in the federal and State governments to ensure that the policies embodied in the Federal Act, the Illinois Gas Pipeline Safety Act, this Act, the Illinois Oil and Gas Act, the Public Utilities Act, and the rules adopted thereunder are fully effectuated. The Department and the Commission shall take steps to avoid the duplication of efforts while at the same time ensuring that all regulatory obligations are fulfilled. As long as the Department submits to the Secretary of Transportation annually the certification described in 49 U.S.C. 60105(a), and the certification is not rejected under 49 U.S.C. 60105(f), the Department shall have jurisdiction over the downhole portion of underground natural gas storage facilities subject to this Act. The Commission shall retain jurisdiction over all other portions of the underground natural gas storage facilities.

(b) Nothing contained in this Act is intended, nor shall it be construed, to limit or diminish the authority of the Department under the Illinois Oil and Gas Act or the Commission under the Public Utilities Act.

(Source: P.A. 100-1172, eff. 1-4-19.)

(415 ILCS 160/60)

Sec. 60. Saving clause. If any provision, clause, or phrase of this Act or the application thereof to any person or circumstances is held invalid, such invalidity shall not affect other provisions or application of this Act that can be given effect without the invalid provision or application and to this end provisions of this Act are declared to be separable.

(Source: P.A. 100-1172, eff. 1-4-19.)

(415 ILCS 160/65)

Sec. 65. Department authority; enforcement. The Department shall have the authority to adopt reasonable rules as may be necessary from time to time in the proper administration and enforcement of this Act.

(Source: P.A. 100-1172, eff. 1-4-19.)

(415 ILCS 160/900)

Sec. 900. (Amendatory provisions; text omitted).

(Source: P.A. 100-1172, eff. 1-4-19; text omitted.)

(415 ILCS 160/905)

Sec. 905. (Amendatory provisions; text omitted).

(Source: P.A. 100-1172, eff. 1-4-19; text omitted.)

(415 ILCS 160/999)

Sec. 999. Effective date. This Act takes effect upon becoming law.

(Source: P.A. 100-1172, eff. 1-4-19.)