2014 Indiana Code TITLE 32. PROPERTY ARTICLE 23. CONVEYANCE OF PROPERTY INTERESTS LESS THAN FEE SIMPLE CHAPTER 7. OIL AND GAS: ESTATES IN LAND
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IC 32-23-7
Chapter 7. Oil and Gas: Estates in Land
IC 32-23-7-0.3
"Coal bed methane"
Sec. 0.3. As used in this chapter, "coal bed methane" has the
meaning set forth in IC 14-8-2-42.2.
As added by P.L.140-2011, SEC.18.
IC 32-23-7-0.4
"Coal bed methane estate in land"
Sec. 0.4. (a) As used in this chapter, "coal bed methane estate in
land" means the aggregate of all rights in land that affect the coal bed
methane:
(1) in the land;
(2) on the land;
(3) under the land; or
(4) that may be taken from beneath the surface of the land.
(b) The term includes the following:
(1) The right to produce coal bed methane for commercial use
or sale.
(2) The appurtenant right to use the surface overlying the coal
bed methane for coal bed methane operations.
As added by P.L.140-2011, SEC.19.
IC 32-23-7-0.5
"Coal bed methane production area"
Sec. 0.5. (a) As used in this chapter, "coal bed methane production
area" means the area of land determined by the operator in which
multiple wells are drilled for a common production purpose.
(b) A coal bed methane production area need not be part of a unit
or other area in which production is pooled.
As added by P.L.140-2011, SEC.20.
IC 32-23-7-0.8
"Commercially minable coal resource"
Sec. 0.8. As used in this chapter, "commercially minable coal
resource" has the meaning set forth in IC 14-8-2-47.
As added by P.L.140-2011, SEC.21.
IC 32-23-7-1
"Oil and gas"
Sec. 1. (a) As used in this chapter, "oil and gas" means petroleum
and mineral oils and gaseous substances of whatever character
naturally lying or found beneath the surface of land.
(b) The term does not include coal bed methane.
As added by P.L.2-2002, SEC.8. Amended by P.L.140-2011, SEC.22.
IC 32-23-7-2
"Oil and gas estate in land"
Sec. 2. As used in this chapter, "oil and gas estate in land" means
the aggregate of all rights in land that affect the oil and gas in, on,
under, or that may be taken from beneath the surface of the land.
As added by P.L.2-2002, SEC.8.
IC 32-23-7-2.5
"Operations for coal bed methane"
Sec. 2.5. As used in this chapter, "operations for coal bed
methane", unless otherwise indicated by the context of this chapter,
means:
(1) the exploration, surveying, or testing of land for coal bed
methane;
(2) other investigation of the potential of land for coal bed
methane production;
(3) the actual drilling or preparation for drilling of wells for coal
bed methane;
(4) the stimulation of coal bed methane production by
hydrofracturing or otherwise;
(5) the collection and transportation by pipeline of coal bed
methane from:
(A) the land; or
(B) nearby land that is a part of a coal bed methane
production area that includes the land; or
(6) any other actions directed toward the eventual production or
attempted production of coal bed methane from the land.
As added by P.L.140-2011, SEC.23.
IC 32-23-7-3
"Operations for oil and gas"
Sec. 3. As used in this chapter, "operations for oil and gas", unless
otherwise indicated by the context of this chapter, means:
(1) the:
(A) exploration;
(B) testing;
(C) surveying; or
(D) other investigation;
of the potential of the land for oil and gas;
(2) the actual drilling or preparations for drilling of wells for oil
and gas on the land; or
(3) any other actions directed toward the eventual production or
attempted production of oil and gas from the land.
As added by P.L.2-2002, SEC.8.
IC 32-23-7-4
"Person in interest"
Sec. 4. (a) As used in this chapter, "person in interest" means:
(1) if used in reference to an oil and gas estate in land, the
owner of a beneficial interest in the oil and gas estate in land; or
(2) if used in reference to a coal bed methane estate in land, the
owner of a beneficial interest in the coal bed methane estate in
land;
whether the interest is held for life, for a term of years, or in fee.
(b) The term includes a lessee, licensee, or duly qualified agent of
the owner.
(c) The term does not include a mortgagee or security assignee of
the owner if the mortgagee or security assignee does not have a right
to the control or operation of the premises for:
(1) if used in reference to an oil and gas estate in land, oil and
gas; or
(2) if used in reference to a coal bed methane estate in land, coal
bed methane.
As added by P.L.2-2002, SEC.8. Amended by P.L.140-2011, SEC.24.
IC 32-23-7-5
"Surface rights"
Sec. 5. As used in this chapter, "surface rights" means all rights
relating to the occupancy, user, or ownership of the surface of land
affected by this chapter.
As added by P.L.2-2002, SEC.8.
IC 32-23-7-6
Rights and privileges transferred
Sec. 6. A grant or reservation contained in an instrument that
affects land in Indiana and that purports to convey or transfer an
interest in the oil and gas in, on, under, or that may be produced from
beneath the surface of the land transfers the following expressed
rights and privileges in addition to any other rights naturally flowing
from the character of the instrument in law to the named recipient:
(1) A person in interest in the oil and gas estate in land may
enter the land for the purpose of:
(A) exploring, prospecting, testing, surveying, or otherwise
investigating the land to determine the potential of the land
for oil or gas production; or
(B) otherwise conducting operations for oil and gas on the
land;
whether or not the person is also the owner, lessee, or licensee
of an owner of an interest in the surface rights in the land.
(2) A person in interest in the oil and gas estate in land in
Indiana may enter the land to drill a well or test well on the land
for the production or attempted production of oil and gas
regardless of whether the:
(A) person is also the owner, lessee, or licensee of an owner
of an interest in the surface rights in the land; and
(B) owner of the remaining rights in the land consents to the
entrance and drilling.
A person that drills a well under this subdivision shall provide
an accounting to the remaining or nonparticipating persons in
interest in the oil and gas estate in the land, for their respective
proportionate shares of the net profits arising from the
operations conducted upon the land for oil or gas. In calculating
the profits, a reduction may not be made from the gross
proceeds of the production of oil and gas, except for expenses
that are reasonably or necessarily incurred in connection with
the drilling, completion, equipping, and operation of the wells
drilled upon the premises during the period in which the
relationship of cotenancy existed between the person drilling the
well and the person whose interest is sought to be charged with
the respective proportionate part of the cost of the drilling.
(3) A person who may enter and enters land in Indiana for the
purpose of exploring, prospecting, testing, surveying, or
otherwise investigating the potential of the land for oil and gas,
or for the purpose of conducting operations on the land for the
production of oil and gas, is accountable to the owner of the
surface of the land for the actual damage resulting from the
person's activities on the land to:
(A) the surface of the land;
(B) improvements to the land; or
(C) growing crops on the land.
However, a person who enters land under this subdivision is not
liable for punitive damages. Actual damage for which a person
is accountable under this subdivision includes actual damage to
marketable timber, crops, drainage systems, or erosion control
systems, or quantifiable and verifiable damage to crops from
compaction, abnormal flooding, or abnormal soil erosion caused
by oil and gas operations. This subdivision does not increase
damages between a lessor and a lessee in a valid and subsisting
oil and gas lease that specifies damages if damages are not due
other than damages that are expressly provided by contract
between cotenants or the lessees of cotenants of a like estate in
the land. This section does not authorize the location of a well
for oil and gas nearer than two hundred (200) feet to an existing
house, barn, or other structure (except fences) without the
express consent of the owner of the structure.
(4) The right to conduct operations for oil and gas upon land
located in Indiana includes the right to:
(A) install and maintain physical equipment on the land; and
(B) use the portion of the surface of the land that is
reasonably necessary for the operations;
subject to the payment of damages resulting from the
installation only of the equipment specified in this subdivision.
As added by P.L.2-2002, SEC.8. Amended by P.L.140-2011, SEC.25.
IC 32-23-7-6.5
Notice to surface owner of intent to enter property
Sec. 6.5. (a) This section does not apply in the event of an
emergency entry.
(b) Unless otherwise agreed by the surface owner, a person who
is an owner or holder of an oil and gas mineral interest or coal bed
methane mineral interest and who wants to enter land for the purpose
of surveying a drilling location must provide to the surface owner a
written notice of the person's intent to enter the property at least five
(5) days before the person's entry.
(c) The written notice under subsection (b) may be given by
personal delivery or by certified mail:
(1) to the last known address of each person who is liable for
any property taxes on the property as shown on the tax
duplicate; or
(2) to the last known address of the most recent owner of the
property shown in the transfer book.
As added by P.L.140-2011, SEC.26. Amended by P.L.6-2012,
SEC.210.
IC 32-23-7-7
Interests created; title; alienability
Sec. 7. (a) This section applies to the following:
(1) Interests in oil and gas.
(2) Interests in coal bed methane.
(b) An interest referred to in subsection (a) in, on, under, or that
may be taken from beneath the surface of land located in Indiana may
be created:
(1) for life;
(2) for a term of years; or
(3) in fee;
in the manner and to the extent that other interests in real estate and
title are created.
(c) Title to the estates specified under subsection (b) may be
vested in one (1) or more persons by:
(1) sole ownership;
(2) tenancy in common;
(3) joint tenancy;
(4) tenancy by the entireties; or
(5) another manner recognized under Indiana law.
(d) Interests or estates specified in this section are freely alienable,
in whole or in part, in the same manner as are other interests in real
estate.
As added by P.L.2-2002, SEC.8. Amended by P.L.140-2011, SEC.27.
IC 32-23-7-8
Contract rights not limited; legislative intent; regulation of
industry; construction of law
Sec. 8. (a) This chapter does not limit the rights of parties to
contract with regard to an oil and gas estate or a coal bed methane
estate in land affecting lands in Indiana:
(1) to the extent permitted by; and
(2) in a manner consistent with;
the nature of the estate in law as specified under this chapter.
(b) This chapter does not affect the rights or powers of any
commission, board, or authority duly constituted for the regulation of
the oil and gas industry or the coal bed methane industry in Indiana.
As added by P.L.2-2002, SEC.8. Amended by P.L.140-2011, SEC.28.
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