CHAPTER 10. OIL AND GAS ENVIRONMENTAL FUND
IC 14-37-10
Chapter 10. Oil and Gas Environmental Fund
IC 14-37-10-1
"Fund" defined
Sec. 1. As used in this chapter, "fund" refers to the oil and gas
environmental fund established by this chapter.
As added by P.L.1-1995, SEC.30.
IC 14-37-10-2
Establishment and administration of fund
Sec. 2. The oil and gas environmental fund is established. The
department shall administer the fund.
As added by P.L.1-1995, SEC.30.
IC 14-37-10-3
Deposits in fund
Sec. 3. The following shall be deposited in the fund:
(1) Annual fees for oil and gas wells received under IC 14-37-5.
(2) Accrued interest and other investment earnings of the fund.
(3) Civil penalties collected under IC 14-37-13-3.
(4) Gifts, grants, donations, or appropriations from any source.
As added by P.L.1-1995, SEC.30. Amended by P.L.236-2001, SEC.3;
P.L.48-2002, SEC.5.
IC 14-37-10-4
Amount of money in fund; investments; transfer to state general
fund
Sec. 4. (a) Except as provided in subsection (d), money in the
fund does not revert to the state general fund at the end of a state
fiscal year.
(b) The total amount of money in the fund may not exceed one
million five hundred thousand dollars ($1,500,000). Any amount of
money in the fund exceeding one million five hundred thousand
dollars ($1,500,000) on November 1 of a year reverts to the oil and
gas fund established by IC 6-8-1-27. The fund must maintain a
balance of at least five hundred thousand dollars ($500,000) as a
surety fund for operators who are not required to execute a bond
under IC 14-37-6-1. Expenditures that would reduce the fund below
five hundred thousand dollars ($500,000) must be approved by the
budget agency.
(c) The treasurer of state shall invest the money in the fund not
currently needed to meet the obligations of the fund in the same
manner as other public money may be invested. Interest that accrues
from these investments shall be deposited in the fund.
(d) If the fund is abolished, all money in the fund is transferred to
the state general fund.
(e) The expenses of administering the fund shall be paid from
money in the fund. However, the department may not expend more
than five percent (5%) of the money in the fund for administering the
fund each state fiscal year.
As added by P.L.1-1995, SEC.30. Amended by P.L.48-2002, SEC.6.
IC 14-37-10-5
Appropriations; emergency expenditures
Sec. 5. (a) Money paid into the fund shall be appropriated for the
following purposes:
(1) To supplement the cost required to abandon a well that has
had a permit revoked under IC 14-37-13-1.
(2) To cover the costs of remedial plugging and repairing of
wells under IC 14-37-8, including the expenses of remedial
action under IC 14-37-8-15.
(3) To cover the cost to:
(A) mitigate environmental damage; or
(B) protect public safety against harm;
caused by a well regulated under this article.
(b) The director may make expenditures from the fund for
emergency purposes under section 6 of this chapter without the prior
approval of the budget agency or the governor. An expenditure under
this subsection may not exceed fifty thousand dollars ($50,000).
(c) The director may establish a program to reimburse an
applicant for the reasonable expenses of remedial action incurred
under IC 14-37-8-15. The director may make expenditures from the
fund for this purpose and may establish any necessary guidelines and
procedures to administer the program.
As added by P.L.1-1995, SEC.30. Amended by P.L.236-2001, SEC.4.
IC 14-37-10-6
Exhausting other sources of funding before seeking appropriation
Sec. 6. The department shall make a reasonable effort to exhaust
any other sources of funding available for the purposes described in
section 5 of this chapter before seeking an appropriation from the
fund. If, however, a delay in:
(1) plugging and repairing a well; or
(2) mitigating environmental damage as provided under section
5 of this chapter;
poses a hazard to health, safety, or the environment, the department
may seek an immediate appropriation from the fund.
As added by P.L.1-1995, SEC.30.
IC 14-37-10-7
Liability of responsible person
Sec. 7. (a) An expenditure made from the fund under this chapter
does not release a responsible person from liability for the purposes
described in section 5 of this chapter.
(b) The department may seek reimbursement for expenses
incurred under this chapter from a responsible person.
As added by P.L.1-1995, SEC.30.