EPA Methane Rule Rescission on Hold For Now

By Craig R. Hedin, Gesell’s Pump Sales & Service, Inc.

The U.S. Environmental Protection Agency (USEPA) on Aug. 13 issued two final rules related to the New Source Performance Standards (NSPS) for the oil and natural gas industry. The policy rule revisions were published in the Federal Register on September 14, 2020, and the technical rule revisions were published in the Federal Register on September 15, 2020.  With these publications, the rules became effective.

But as expected, environmental groups and various states, including Illinois, filed petitions in the Circuit Court of Appeals for the District of Columbia on Sept. 15 to review both of the rules. Emergency motions were filed to stay (hold in abeyance) the Policy Rule and this motion was granted with the court stating it was “to give the court sufficient opportunity to consider the emergency rule for stay and should not be construed in anyway as a ruling on the merits of that motion.”  The states then also filed a motion to stay the proceedings.

A coalition of state oil and gas associations that includes IOGA have been parties to the various regulatory and legal proceedings.  It is contemplated that the coalition will intervene in the District of Columbia Circuit proceedings for purposes of opposing the motions for the stay.

In considering the foregoing, the implementation of the rules are on hold for the time being.

The foregoing final rules would exempt low production wells from fugitive emissions monitoring requirements as long as the well maintains production at or below 15 barrels per day.  This will relieve most Illinois operators from the unreasonable burden of fugitive methane emissions monitoring and repair.

Illinois operations are primarily low producing marginal wells. In fact, it is estimated that more than 90 percent of Illinois oil wells are “stripper” wells that produce one to two barrels per day. Stripper wells are estimated to be responsible for just 6.5 percent of total U.S. oil and natural gas production methane emissions.  Implementing the technology to limit methane emissions from these wells would be cost prohibitive and would make most leases uneconomical.  The industry has always advocated for relief from the requirements of emission limitations as to marginal wells.

The following is a statement from the USEPA, which highlights the final policy and technical rules for the industry:

Highlights of the Final Policy and Technical Rules for the Oil and Natural Gas Industry

            On August 13, 2020, the EPA announced two distinct final regulations for the oil and natural gas industry that streamline requirements, reduce regulatory burden and save the industry millions of dollars in compliance costs each year, while maintaining health and environmental protection from sources that the Agency considers appropriate to regulate. 

  • EPA issued the final rules at the same time to provide clarity to the industry and to streamline compliance.  Combined, the two final rules are projected to result in net benefits of $750 to $850 million over the period from 2021 to 2030, the annualized equivalent of about $100 million a year.
  • The regulations are final policy amendments to the 2012 and 2016 New Source Performance Standards (NSPS) for the oil and natural gas industry and final technical amendments to the 2016 NSPS for that industry.
  • The Obama Administration promulgated regulation of methane from the transmission and storage segment of the oil and gas sector without taking the appropriate steps to justify such an action.  These amendments reflect the Trump Administration’s position that EPA must make a finding that a pollutant, like methane, contributes significantly to air pollution anticipated to endanger public health before regulating it.
  • These amendments not only follow the text of the Clean Air Act, but also reduce regulatory burden to the industry and streamline other requirements. Protection of human health and the environment will continue through controls for smog-forming volatile organic compounds for the production and processing segments of the industry, reducing methane at the same time.

Final policy amendments

EPA is issuing the policy amendments in response to President Trump’s Executive Order on Promoting Energy Independence and Economic Growth.  The order directs agencies to review existing regulations that potentially “burden the development or use of domestically produced energy resources,” including oil and natural gas, and to rescind or suspend regulatory requirements if appropriate.

 ○ Key aspects of the policy amendments:

  • Remove the transmission and storage segment from the regulated “source category.”  EPA has determined that it was not appropriate to include this segment in the source category in the 2012 and 2016 amendments to the NSPS. 
  • Rescind all NSPS requirements that applied to the transmission and storage segment. 
  • Rescind methane standards for the production and processing segments of the industry.  Standards for smog-forming volatile organic compounds (VOCs) continue to apply for the production and processing segments. Because the controls to reduce VOCs and the controls to reduce methane are the same, methane emissions will continue to be reduced from these segments.
  • Finalize EPA’s position that the Clean Air Act requires, or authorizes, EPA to make a “significant contribution finding” for any particular pollutant as a predicate for setting performance standards for that pollutant.

○  What the policy amendments mean for existing sources:

  • Because EPA has rescinded methane standards for the production and processing segments of the industry, EPA is no longer required or authorized to issue emissions guidelines to address methane emissions from existing sources.

Final technical amendments

○ EPA is issuing the technical amendments to address a range of technical and implementation issues in response to administrative petitions for reconsideration and other issues brought to EPA’s attention since the 2016 NSPS was issued.  These include fugitive emissions requirements, recordkeeping and reporting requirements, provisions to apply for the use of an alternative means of emission limitation (AMEL), pneumatic pump standards, storage vessel standard applicability determination, and engineer certifications.  The final amendments will significantly reduce regulatory burden and save the industry hundreds of millions of dollars in compliance costs each year.

○ Key aspects of the technical amendments:

    • For Fugitive Emissions Monitoring, the technical amendments:
  • Reduce the frequency of required fugitive emissions monitoring for gathering and boosting compressor stations from quarterly to semi-annually.
  • Exempt low-production wells from fugitive emissions monitoring requirements, as long as the well maintains production at or below 15 barrels of oil equivalent (boe) per day.
  • Retain the schedule for fugitive emissions monitoring for non-low production wells at semi-annual.  EPA had proposed to change this schedule but retained it after finding that semi-annual monitoring for VOCs at non-low production well sites remained cost­effective.
  • Allow owners/operators to determine the best means to ensure that all components are monitored, rather than having to include a site map and an observation path in their monitoring plans.
  • Streamline recordkeeping and reporting requirements.
  • Revise the schedule for making fugitive emissions repairs.
  • Clarify the actions that constitute a modification for a well site that is a separate tank battery surface site.

 

    • For Alternative Means of Emissions Limitations (AMEL), the technical amendments:
  • Incorporate state fugitive emissions standards for well sites and compressor stations in California, Colorado, Ohio, Pennsylvania and Texas, and for well sites in Utah, and simplify recordkeeping for some owners/operators who choose to comply with those standards.  The final rule incorporates an alternative for gathering and boosting compressor stations in Texas; in the proposal Texas was included only for well sites.
  • Streamline the process to request new alternative emissions standards as state, local, and tribal fugitive emissions programs continue to develop.
  • Recognize that new technologies that are expected to enter the market could help locate the source of fugitive emissions sooner and at lower costs than the current technologies required in the NSPS.
  • Amend the application requirements for requesting to use an AMEL for monitoring and reducing fugitive emissions from well sites and compressor stations to allow any person to apply.
  • Notes that EPA has discretion in certain circumstances to allow for broad approval of alternatives and will work with applicants throughout the approval process as appropriate.
    • For Pneumatic Pumps, the technical amendments:
  • Expand an existing exemption from control requirements to cover pumps at greenfield sites.
  • Expand the types of monitoring that owners/operators may use to demonstrate that closed vent systems associated with pneumatic pumps are operating with no detectable emissions

 

    • For Engineer Certifications for Closed Vent Systems, the technical amendments:
  • Allow either a professional engineer or in-house engineer with appropriate knowledge of the closed-vent system design to certify that the system is designed and operated as required

 

    • For Storage Vessels (Tanks), the technical amendments:
  • Clarify how to calculate potential VOC emissions for individual storage tanks to determine whether standards in the rule apply.
  • Establish separate criteria for calculating potential VOC emissions from individual storage vessels that are part of a controlled tank battery.

IDNR Revisions to Spacing and Location of Wells

By Craig R. Hedin

The Illinois Department of Natural Resources/Office of Oil & Gas Resource Management has made significant revisions as to how oil wells are spaced and located. The primary purpose is to increase the locations where wells can be drilled in hopes of spurring further development. The goal is to give operators more options as to how to develop a particular reservoir.

For many years, spacing regulations were static. They were based on standard governmental survey tracts and uniform density setback measurements. These methods were arbitrary and not based on any determination of drainage patterns. Spacing regulations were developed in the 1940s to prevent waste that resulted from over drilling and over production. The ability to drill unabated prevented the proper development of reservoirs to maximize the recovery of oil. The prevention of waste is the backbone of the Department’s regulations.

Historically, spacing and well location (density) regulations for oil wells were as follows:

  • 10 acres of surface area lying within the quarter-quarter section of lands for wells drilled or deepened for the production of oil from a reservoir other than limestone/dolomite, the top of which lies less than 4,000 feet beneath the surface. The location of the well shall be not less than 330 feet from the nearest external boundary lines of the drilling unit nor less than 660 feet from the nearest location of a producing well, a well being drilled, or a well for which a permit has previously been issued but not yet drilled, for a well to the same individual reservoir.
  • 20 acres of surface area lying within the east-west or north-south one-half of a quarter-quarter section of land for wells drilled or deepened for the production of oil from a limestone/dolomite reservoir, the top of which lies less than 4,000 feet beneath the surface. The location of the well shall be not less than 330 feet from the nearest external boundary lines of the drilling unit, nor less than 660 feet from the nearest location of a producing well, a well being drilled, or a well for which a permit has previously been issued but not yet drilled, for a well to the same individual reservoir.
  • 40 acres of surface area lying within a quarter-quarter section of land for wells drilled or deepened for the production of oil from a reservoir, the top of which lies between 4,000 and 6,000 feet beneath the surface. The location of the well shall be not less than 330 feet from the nearest external boundary lines of the drilling unit, nor less than 660 feet from the nearest location of a producing well, a well being drilled, or a well for which a permit has previously been issued but not yet drilled, for a well to the same individual reservoir.

The historical regulations created a distinct pattern for the primary development of a reservoir. Spacing created drilling units with required setbacks from the boundaries of the unit and from other wells producing from the same reservoir. Exceptions to the spacing configuration and well locations could be granted but generally, a petition and hearing were required. The exceptions included horizontal wells, modified drilling units, special drilling units, and pool wide drilling units. This slowed development because of the time and expense necessary to obtain the exceptions.

A further variance to the spacing and location requirements was the initiation of secondary recovery operations. Once injection of water commenced for secondary operations, the location of wells in the reservoir within a lease boundary was waived. But, a setback of 330 feet from the lease boundary was still required.

Over the past two years, the regulations as to spacing and well locations have been revised. The revised regulations now provide as follows:

  • 10 acres of surface area lying within the quarter-quarter-quarter section of land for wells drilled or deepened for the production of oil from a reservoir other than limestone/dolomite, the top of which lies less than 5000 feet beneath the surface or the top of the Trenton Formation, whichever depth is greater. The location of the well shall not be less than 330 feet from the nearest lease boundary line except any lease boundary line located within a pooled unit. The location shall be no less than 330 feet from the nearest location of a producing well, a well being drilled, or a well for which a permit has previously been issued but not yet drilled, for a well to the same individual reservoir. The location shall be no less than 10 feet from the nearest drilling unit boundary line.
  • 20 acres of surface area lying within the east-west or north-south one-half of a quarter-quarter section of land for wells drilled or deepened for the production of oil from a limestone/dolomite reservoir, the top of which lies less than 5000 feet beneath the surface or the top of the Trenton Formation, whichever depth is greater. The location of the well shall not be not less than 330 feet from the nearest lease boundary line except any lease boundary line located within a pooled unit. The location shall be no less than 330 feet from the nearest location of a producing well, a well being drilled, or a well for which a permit has previously been issued but not yet drilled, for a well to the same individual reservoir. The location shall be no less than 10 feet from the nearest drilling unit boundary line.
  • 40 acres of surface area lying within a quarter-quarter section of land for wells drilled or deepened for the production of oil from a reservoir, the top of which lies at or below 5,000 feet beneath the surface or the top of the Trenton Formation, whichever depth is greater. The location of the well shall be not less than 330 feet from the nearest lease boundary line except any lease boundary line located within a pooled unit. The location shall be no less than 330 feet from the nearest location of a producing well, a well being drilled, or a well for which a permit has previously been issued but not yet drilled, for a well to the same individual reservoir. The location shall be no less than 10 feet from the nearest drilling unit boundary line.

The revisions greatly enhance the ability of an operator to develop in the following respects:

  • 20 acre spacing is now allowed for wells down to 5,000 feet or the top of the Trenton Formation, whichever is greater, as opposed to a limitation of 4,000 feet (with no reference to the Trenton Formation). This allows for more drilling units because of the reduction from 40 acres to 20 acres.
  • Wells can be located as close as 10 feet to a drilling unit boundary line as opposed to the previous requirement of 330 feet. But, note that the well is still required to be at least 330 feet from the boundary line of the lease. This revision greatly increases where wells may be located and enhances the possibility of in-fill development of a reservoir.
  • The density of well locations has been increased. A well may now be not less than 330 feet from a well producing from the same reservoir. Previously, the well was required to be at least 660 feet from a well producing from the same reservoir. This increases the number of wells that can be developed.

All of the foregoing have increased the ability of an operator to develop a reservoir. The trend continues as the Oil and Gas Advisory Board has recommended to the Department that the spacing for all wells be a uniform 10 acres within a quarter-quarter-quarter section. The Department has indicated agreement and it is contemplated that the regulatory revision process will begin.

Legislative Update May 13th

Dan Reitz | Lobbyist

Illinois lawmakers will return to Springfield next week, May 20th through the 22nd to resume a spring session interrupted by the coronavirus pandemic.

The House will relocate to the Bank of Springfield Center.  All House Democrats are being asked to sign a pledge to follow IDPH precautions when they return. They include getting tested before the session resumes, getting a temperature check on session days, wearing a mask at all times and traveling alone. He asked that all House Republicans also sign the pledge.

The Speaker’s office issued a memo to members advising them of how session will be conducted in a location remote from the Capitol. The Illinois State Police will provide security at the building and only a limited number of the public will be admitted.

Committee hearings will be conducted on the floor. The House clerk will conduct roll call votes when they are required.

The Senate will meet in the Capitol.  The Senate is expected to operate under normal rules.

On Tuesday, Gov. JB Pritzker said he wanted lawmakers to return to Springfield to act on economic relief measures for the coronavirus pandemic.

“The legislature must convene so that we can begin to put our financial and economic house back in order even as we battle this terrible virus,” he said during his daily briefing. “The General Assembly needs to pass a comprehensive plan to support families, small businesses and small towns.”

He said he wanted increased rent and mortgage assistance for families, grants and loans for small businesses and tax credits for small business job recovery. He also wanted assistance for small cities and towns to help with their first responder costs.

Lawmakers have been involved in working groups for weeks trying to negotiate legislation that absolutely must be passed during the spring session. Foremost among them is approval of a state budget. However, it will be a budget that could lose more than $4 billion of revenue that was anticipated before the pandemic hit, forcing businesses to close and putting people out of work. At the same time, there will be pressure to increase spending on programs to help those who have been hurt by the virus and its effects.

Beyond the budget, lawmakers are pushing to get other bills heard.  It is unclear if the General Assembly will hear any legislation that is not directly related to the pandemic during an abbreviated session.

Take Action: Trading Irregularities

Domestic Energy Producers Alliance

Make your voice count.

If your company was impacted by the trading irregularities on April 20, 2020, join us in demanding an immediate investigation.

We are asking that the Commodities Futures Trading Commission (CFTC) begin an investigation without delay of the WTI crude oil futures traded on the Chicago Mercantile Exchange (CME). The investigation needs to include the possibility of market manipulation, failed processes and systems or computer programing errors in the WTI prompt month of May 20 and oil contract futures on the CME. This can never be allowed to happen again.

Steps you can take now.

  1. File a complaint with the CME on behalf of your company.
  1. Reach out to the CFTC and ask them to investigate the CME.

We want to hear your story.

Additionally, we would appreciate hearing your personal stories about how you/your company have been impacted by the price crash and crude oil trading below $0. This includes job losses, layoffs, furloughs, budget cuts, amount of shut-in production, etc. Maintaining your anonymity, it is so important we have the statistics and data to share with policymakers so they understand the real-life impact this has had on our industry.

 

Click here to download a sample letter to CTCF Chairman Talbot

IOGA Letter to Illinois Department of Natural Resources

IOGA sent the following letter to Daniel Brennan and Ernest Kierbach at the Illinois Department of Natural Resources Office of Oil & Gas Resource Management. The letter expresses IOGA’s concern about low oil prices and requests that the IDNR consider a moratorium on the issuance of NNCs and NOVs.

Read the full letter here.

Daniel Brennan responded to IOGA following our letter. His response said the IDNR’s Office Oil and Gas Resource Management has instituted the following changes.

“As of April 1, 2020, for any matter that results in the issuance of a NNC, the permittee with be automatically granted an extension of the maximum time allowed to return the well, facility or site to compliance. Additionally, the Office is reviewing all relevant sections of the Illinois Oil and Gas Act (225 ILCS 725 et al.) and Illinois Administrative Code (62 Ill.Adm.Code 240 et al.) to determine how best to address all non-emergency violations.”

Read the full letter here.

Executive Order 18

This order extends the Executive Orders issued by Governor Pritzker, in response to COVID-19, until April 30th. We are still listed as an essential industry and will continue to update the ever-changing state of our state.

Paycheck Protection Program FAQs for Small Businesses

(Source: U.S. Senate Committee on Small Business and Entrepreneurship)

Where can I apply for the Paycheck Protection Program?

You can apply for the Paycheck Protection Program (PPP) at any lending institution that is approved to participate in the program through the existing U.S. Small Business Administration (SBA) 7(a) lending program and additional lenders approved by the Department of Treasury. This could be the bank you already use, or a nearby bank. There are thousands of banks that already participate in the SBA’s lending programs, including numerous community banks. You do not have to visit any government institution to apply for the program. You can call your bank or find SBA-approved lenders in your area through SBA’s online Lender Match tool. You can call your local Small Business Development Center or Women’s Business Center and they will provide free assistance and guide you to lenders.

Who is eligible for the loan?

You are eligible for a loan if you are a small business that employs 500 employees or fewer, or if your business is in an industry that has an employee-based size standard through SBA that is higher than 500 employees. In addition, if you are a restaurant, hotel, or a business that falls within the North American Industry Classification System (NAICS) code 72, “Accommodation and Food Services,” and each of your locations has 500 employees or fewer, you are eligible. Tribal businesses, 501(c)(19) veteran organizations, and 501(c)(3) nonprofits, including religious organizations, will be eligible for the program. Nonprofit organizations are subject to SBA’s affiliation standards. Independently owned franchises with under 500 employees, who are approved by SBA, are also eligible. Eligible franchises can be found through SBA’s Franchise Directory.

I am an independent contractor or gig economy worker, am I eligible?

Yes. Sole proprietors, independent contractors, gig economy workers, and self-employed individuals are all eligible for the Paycheck Protection Program.

What is the maximum amount I can borrow?

The amount any small business is eligible to borrow is 250 percent of their average monthly payroll expenses, up to a total of $10 million. This amount is intended to cover 8 weeks of payroll expenses and any additional amounts for making payments towards debt obligations. This 8 week period may be applied to any time frame between February 15, 2020 and June 30, 2020. Seasonal business expenses will be measured using a 12-week period beginning February 15, 2019, or March 1, 2019, whichever the seasonal employer chooses.

How can I use the money such that the loan will be forgiven?

The amount of principal that may be forgiven is equal to the sum of expenses for payroll, and existing interest payments on mortgages, rent payments, leases, and utility service agreements. Payroll costs include employee salaries (up to an annual rate of pay of $100,000), hourly wages and cash tips, paid sick or medical leave, and group health insurance premiums. If you would like to use the Paycheck Protection Program for other business-related expenses, like inventory, you can, but that portion of the loan will not be forgiven.

When is the loan forgiven?

The loan is forgiven at the end of the 8-week period after you take out the loan. Borrowers will work with lenders to verify covered expenses and the proper amount of forgiveness. What is the covered period of the loan? The covered period during which expenses can be forgiven extends from February 15, 2020 to June 30, 2020. Borrowers can choose which 8 weeks they want to count towards the covered period, which can start as early as February 15, 2020.

How much of my loan will be forgiven?

The purpose of the Paycheck Protection Program is to help you retain your employees, at their current base pay. If you keep all of your employees, the entirety of the loan will be forgiven. If you still lay off employees, the forgiveness will be reduced by the percent decrease in the number of employees. If your total payroll expenses on workers making less than $100,000 annually decreases by more than 25 percent, loan forgiveness will be reduced by the same amount. If you have already laid off some employees, you can still be forgiven for the full amount of your payroll cost if you rehire your employees by June 30, 2020.

Am I responsible for interest on the forgiven loan amount?

No, if the full principal of the PPP loan is forgiven, the borrower is not responsible for the interest accrued in the 8-week covered period. The remainder of the loan that is not forgiven will operate according to the loan terms agreed upon by you and the lender.

What are the interest rate and terms for the loan amount that is not forgiven?

The terms of the loan not forgiven may differ on a case-by-case basis. However, the maximum terms of the loan feature a 10-year term with interest capped at 4 percent and a 100 percent loan guarantee by the SBA. You will not have to pay any fees on the loan, and collateral requirements and personal guarantees are waived. Loan payments will be deferred for at least six months and up to one year starting at the origination of the loan.

When is the application deadline for the Paycheck Protection Program?

Applicants are eligible to apply for the PPP loan until June 30th, 2020.

I took out a bridge loan through my state, am I eligible to apply for the Paycheck Protection Program?

Yes, you can take out a state bridge loan and are still be eligible for the PPP loan.

If I have applied for, or received an Economic Injury Disaster Loan (EIDL) related to COVID19 before the Paycheck Protection Program became available, will I be able to refinance into a PPP loan?

Yes. If you received an EIDL loan related to COVID-19 between January 31, 2020 and the date at which the PPP becomes available, you would be able to refinance the EIDL into the PPP for loan forgiveness purposes. However, you may not take out an EIDL and a PPP for the same purposes. Remaining portions of the EIDL, for purposes other than those laid out in loan forgiveness terms for a PPP loan, would remain a loan. If you took advantage of an emergency EIDL grant award of up to $10,000, that amount would be subtracted from the amount forgiven under PPP.

Download the proposed application here.

SBA Disaster Loan Program

This information is correct as of 3/23/2020

Anyone interested in applying for this program will apply directly with the SBA. This loan program is NOT being funneled through Banks like the typical SBA 7A or SBA 504 loan programs are.

Click here for the SBA Disaster Loan Program.

Click here to download the presentation from SBA representatives that explains the program and provides some guidance on how to apply. Click here for a quick 3-step overview of the process.

Below is a list of required documents that SBA will ask to be provided with your application for the Disaster Loan Program.

Required Documentation

The following documents are required to process an SBA Disaster Loan Application and reach a loan decision. Your SBA Loan Officer and Case Manager will assist you to ensure that you submit the proper documentation. Approval decision and disbursement of loan funds is dependent on receipt of your documentation.

Businesses

  1. Business Loan Application (SBA Form 5) completed and signed by business applicant.
  2. IRS Form 4506-T completed and signed by Applicant business, each principal owning 20% or more of the applicant business, each general partner or managing member and, for any owner who has more than a 50% ownership in an affiliate business. (Affiliates include business parent, subsidiaries, and/or businesses with common ownership or management).
  3. Complete copies, including all schedules, of the most recent Federal income tax returns for the applicant business; an explanation if not available.
  4. Personal Financial Statement (SBA Form 413) completed, signed and dated by the applicant (if a sole proprietorship), each principal owning 20% or more of the applicant business, each general partner or managing member.
  5. Schedule of Liabilities listing all fixed debts (SBA Form 2202 may be used).
  6. Complete copies, including all schedules, of the most recent Federal income tax returns for each principal owning 20% or more of the applicant business, each general partner or managing member, and each affiliate when any owner has more than a 50% ownership in the affiliate business. Affiliates include, but are not limited to, business parents, subsidiaries, and/or other businesses with common ownership or management.
  7. If the most recent Federal income tax return has not been filed, a year-end profit and loss statement and balance sheet for that tax year is acceptable.
  8. A current year-to-date profit and loss statement (typically within 90 days)
  9. Additional Filing Requirements (SBA Form 1368) providing monthly sales figures.

Illinois Unemployment Resources

This information is correct as of 3/23/2020

COVID-19 and Unemployment Benefits

Unemployment benefits may be available to some individuals whose unemployment is attributable to COVID-19. IDES recently adopted emergency rules to try to make the unemployment insurance system as responsive to the current situation as possible.

What is Unemployment Insurance (UI)?

In general, UI provides temporary income maintenance to individuals who have been separated from employment through no fault of their own and who meet all eligibility requirements, including the requirements that they be able and available for work, register with the state employment service and actively seek work. Click here for more information.

For Employers:

If an employee receives unemployment benefits as a result of COVID-19, will the employer’s unemployment contribution rate increase?

At this time, no further guidance has been issued. Until such time, normal procedures will be followed. In general, the contribution rate of an experience rated employer is based, in part, on the amount of unemployment benefits paid to the employer’s former employees.

Potential Closure or Layoff

Rapid Response Services are available to employers who are planning or have gone through a permanent closure or mass layoff at a plant, facility, or enterprise, or a natural or other disaster, that results in mass job dislocation. The State Dislocated Worker Unit coordinates with employers to provide on-site information to workers and employers about employment and retraining services designed to help participants retain employment when feasible, or obtain re-employment as soon as possible. For more information, visit Rapid Response Services for Businesses or contact your local Illinois workNet Center.

Click here to learn more about unemployment benefits during this time.