Illinois Chapter 765 Property
765 ILCS 530/ Drilling Operations Act.Code Resources
Illinois Resources
Illinois Website
Illinois Governor
Illinois Legislature
Illinois Courts
Search this Code
in Google Scholar
on the Web
Google Web Search
MSN Web Search
Yahoo! Web Search
in the News
Google News Search
Google News Archive Search
Yahoo! News Search
in the Blogs
BlawgSearch.com Search
Google Blog Search
Technorati Blog Search
in other Databases
Google Book Search
(765 ILCS 530/1) (from Ch. 96 1/2, par. 9651)
Sec. 1.
This Act shall be known and may be cited as the "Drilling Operations Act".
(Source: P.A. 85‑1312.)
|
(765 ILCS 530/2) (from Ch. 96 1/2, par. 9652)
Sec. 2.
As used in this Act:
(a) "Person" means any natural person, corporation, firm, partnership,
venture, receiver, trustee, executor, administrator, guardian, fiduciary or
other representative of any kind and includes any government or any
political subdivision or agency thereof;
(b) "Drilling operations" means the drilling, deepening or conversion of
a well for oil or gas production, core hole or drill hole for a stratigraphic
test;
(c) "Entry" means the moving upon the surface of land with equipment to
commence drilling operations, but shall not include entry for the survey
for or ascertaining or identification of a well location;
(d) "Operator" means the person, whether the owner or not, who applies
for or holds a permit for drilling operations or who is named as the
principal on a bond for a permit for a well that was issued by the
Department of Natural Resources;
(e) "Surface owner" means the person in whose name the surface of the
land on which drilling operations are contemplated, and who is assessed for
purposes of taxes imposed pursuant to the Property Tax Code according to the
records of the assessor of the county where the land
is located as certified by said assessor;
(f) "Assessor" means the supervisor of assessments, board of assessors,
or county assessor, as the case may be, for the county in which the land is
located;
(g) "Production operation" means the operation of a well for the
production of oil or gas including all acts, structures, equipment, and
roadways necessary for such operation;
(h) "New well" means a well that is spudded after the effective date of
this Act and does not utilize any part of a well bore or drilling location
that existed prior to the effective date of this Act;
(i) "Completion of the well" means completion of those processes
necessary before production occurs, including the laying of flow lines and
the construction of the tank battery. If the well is not productive, the
date of completion of the well is the day it is plugged and abandoned.
(Source: P.A. 88‑670, eff. 12‑2‑94; 89‑445, eff. 2‑7‑96.)
|
(765 ILCS 530/3) (from Ch. 96 1/2, par. 9653)
Sec. 3.
This Act shall be applicable only for the drilling
operations of new wells except as explicitly provided in paragraph (c) of
Section 6. It shall not apply for reworking operations on a well.
This Act shall be applicable only when the surface owner has not
consented in writing to the drilling operations and:
(A) there has been a complete severance of the ownership of the oil and
gas from the ownership of the surface, or
(B) where the surface owner owns an interest in the oil and gas, which
interest is the subject of either:
(1) An integration proceeding brought pursuant to "An Act in relation to
oil, gas, coal, and other surface and underground resources and to repeal
an Act herein named", approved July 24, 1945, as amended, or
(2) A proceeding brought pursuant to "An Act in relation to oil and gas
interest in land", approved July 1, 1939, as amended.
(Source: P.A. 85‑1312.)
|
(765 ILCS 530/4) (from Ch. 96 1/2, par. 9654)
Sec. 4.
Notice.
(a) Prior to commencement of the drilling of a well, the operator shall
give written notice to the surface owner of the operator's intent to commence
drilling operations.
(b) The operator shall, for the purpose of giving notice as herein
required, secure from the assessor's office within 90 days prior to the
giving of the notice, a certification which shall identify the person in
whose name the lands on which drilling operations are to be commenced and who
is assessed at the time the certification is made. The written certification
made by the assessor of the surface owner shall be conclusive evidence of
the surface ownership and of the operator's compliance with the provisions of
this Act.
(c) The notice required to be given by the operator to the surface owner
shall identify the following:
(1) The location of the proposed entry on the | ||
|
||
(2) A photocopy of the drilling application to the | ||
|
||
(3) The name, address and telephone number of the | ||
|
||
(4) An offer to discuss with the surface owner those | ||
|
||
(5) If the surface owner elects to meet the | ||
|
||
(6) The meeting shall be scheduled between the hours | ||
|
||
(7) The notice herein required shall be given to the | ||
|
||
(A) certified mail addressed to the surface | ||
|
||
(B) personal delivery to the surface owner at | ||
|
||
(C) Notice to the surface owner as defined in | ||
|
||
(Source: P.A. 89‑445, eff. 2‑7‑96.)
|
(765 ILCS 530/5) (from Ch. 96 1/2, par. 9655)
Sec. 5.
Discussion.
The operator, or his agent shall, if the
surface owner accepts the offer to discuss, be available at the time agreed,
date and place to discuss with the surface owner the following:
(A) Placement of roads to be constructed by operator.
(B) Points of entry upon the surface for drilling operations.
(C) Construction and placement of pits used for drilling operations.
(D) Restoration of fences to be cut in order to make entry upon the
surface for drilling operations.
(E) Use of waters on the surface of the lands.
(F) Removal of trees.
(G) Surface water drainage changes caused by drilling operations.
(Source: P.A. 85‑1312.)
|
(765 ILCS 530/6) (from Ch. 96 1/2, par. 9656)
Sec. 6.
Compensation of surface owners for drilling and producing
operations and duties after cessation of production.
(A) The surface owner shall be entitled to reasonable compensation from
the operator for damages to growing crops, trees, shrubs, fences, roads,
structures, improvements and livestock thereon caused by the drilling of a new
well. The surface owner shall also be entitled to reasonable compensation
from the operator for subsequent damages to growing crops, trees, shrubs,
fences, roads, structures, improvements and livestock thereon caused by
subsequent production operations of the operator thereon. The surface
owner shall also be entitled to reasonable compensation for all negligent
acts of operator that cause measurable damage to the productive capacity of
the soil. In addition, the operator shall not utilize any more of the
surface estate than is reasonably necessary for the exploration, production
and development of the mineral estate.
(B) The compensation required pursuant to paragraph (A) above shall be
paid in any manner mutually agreed upon by the operator and the surface
owner, but the failure to agree upon, or make the compensation required,
shall not prevent the operator from commencement of drilling operations;
provided, however, that operator shall tender to the surface owner payment by
check or draft in accordance with the provisions herein no later than 90 days
after completion of the well. The surface owner's remedy shall be an
action for compensation in the circuit court in which the lands or the
greater part thereof are located on which drilling operations were
conducted; provided, however, that if operator fails to tender payment
within the 90‑day period or if the tender is not reasonable, surface owner
shall be entitled to reasonable compensation as provided herein as well as
attorney's fees.
If operator relies on a third party appraiser or fair market value, such
amount shall be conclusively deemed to be reasonable, and there shall be no
award of attorney's fees.
(C) In conjunction with the plugging and abandonment of any well, the
operator shall restore the surface to a condition as near as practicable to
the condition of the surface prior to commencement of drilling operations;
provided, however, that the surface owner and operator may waive this
requirement in writing, subject to the approval of the Department of Natural
Resources that the waiver is in accordance with its
rules.
(D) Where practicable and absent a written agreement to the contrary
with the surface owner, all flow lines and other underground structures
must be buried to a depth not less than 36 inches from the surface.
(Source: P.A. 89‑445, eff. 2‑7‑96.)
|
(765 ILCS 530/7) (from Ch. 96 1/2, par. 9657)
Sec. 7.
Common law rights and remedies preserved.
Nothing in this
Act shall be construed to diminish the rights of the operator or surface
owner as they exist by established common law; provided, however, that any
compensation paid pursuant to the provisions of Section 6 hereof, shall be
a complete bar to the assertion of any other remedy for such damages.
(Source: P.A. 85‑1312.)
|