Bill Amendment: IL SB3113 | 2025-2026 | 104th General Assembly
NOTE: For additional amemendments please see the Bill Drafting List
Bill Title: CREDIT UNIONS-VARIOUS
Status: 2026-07-10 - Public Act . . . . . . . . . 104-0567 [SB3113 Detail]
Download: Illinois-2025-SB3113-House_Amendment_001.html
Bill Title: CREDIT UNIONS-VARIOUS
Status: 2026-07-10 - Public Act . . . . . . . . . 104-0567 [SB3113 Detail]
Download: Illinois-2025-SB3113-House_Amendment_001.html
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| 1 | AMENDMENT TO SENATE BILL 3113 | ||||||
| 2 | AMENDMENT NO. ______. Amend Senate Bill 3113 by replacing | ||||||
| 3 | everything after the enacting clause with the following: | ||||||
| 4 | "Section 5. The Illinois Oil and Gas Act is amended by | ||||||
| 5 | changing Sections 1, 6, 8a, 8e, 14, and 26 and by adding | ||||||
| 6 | Section 19.10 as follows: | ||||||
| 7 | (225 ILCS 725/1) (from Ch. 96 1/2, par. 5401) | ||||||
| 8 | Sec. 1. Unless the context otherwise requires, the words | ||||||
| 9 | defined in this Section have the following meanings as used in | ||||||
| 10 | this Act. | ||||||
| 11 | "Class II fluids" includes: | ||||||
| 12 | (1) produced water or other fluids brought to the | ||||||
| 13 | surface in connection with drilling, completion, workover, | ||||||
| 14 | and plugging of oil and natural gas wells; enhanced | ||||||
| 15 | recovery operations; or natural gas storage operations; | ||||||
| 16 | (2) produced water or other fluids described in item | ||||||
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| 1 | (1) of this definition that, prior to re-injection, have | ||||||
| 2 | been: | ||||||
| 3 | (A) used on site for purposes integrally | ||||||
| 4 | associated to oil and natural gas well drilling, | ||||||
| 5 | completion, workover and plugging, oil and gas | ||||||
| 6 | production, enhanced recovery operations or natural | ||||||
| 7 | gas storage; | ||||||
| 8 | (B) chemically treated or altered to the extent | ||||||
| 9 | necessary to make them usable for purposes integrally | ||||||
| 10 | related to oil and natural gas well drilling, | ||||||
| 11 | completion, workover and plugging, oil and gas | ||||||
| 12 | production, enhanced recovery operations, or natural | ||||||
| 13 | gas storage operations; | ||||||
| 14 | (C) commingled with fluid wastes resulting from | ||||||
| 15 | fluid treatments outlined in this item (2) if, the | ||||||
| 16 | commingled fluid wastes do not constitute a hazardous | ||||||
| 17 | waste under the Resource Conservation and Recovery Act | ||||||
| 18 | (42 U.S.C. 6901 et seq.); | ||||||
| 19 | (3) fresh water from groundwater or surface water | ||||||
| 20 | sources that is used for purposes integrally related or | ||||||
| 21 | associated with oil and natural gas well drilling, | ||||||
| 22 | completion, workover and plugging, oil and gas production, | ||||||
| 23 | enhanced recovery operations, or natural gas storage; | ||||||
| 24 | waste fluids from gas plants (including filter backwash, | ||||||
| 25 | precipitated sludge, iron sponge, hydrogen sulfide and | ||||||
| 26 | scrubber liquid) that are an integral part of oil and gas | ||||||
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| 1 | production operations; and | ||||||
| 2 | (4) waste fluids from gas dehydration plants | ||||||
| 3 | (including glycol-based compounds and filter backwash) | ||||||
| 4 | that are an integral part of natural gas storage | ||||||
| 5 | operations, unless the gas plant or gas dehydration plant | ||||||
| 6 | wastes are classified as hazardous under the Resource | ||||||
| 7 | Conservation and Recovery Act. | ||||||
| 8 | "Department" means the Department of Natural Resources. | ||||||
| 9 | "Director" means the Director of Natural Resources. | ||||||
| 10 | "Drilling unit" means the surface area allocated by an | ||||||
| 11 | order or rule of the Department to the drilling of a single | ||||||
| 12 | well for the production of oil or gas from an individual pool. | ||||||
| 13 | "Enhanced recovery method" means any method used in an | ||||||
| 14 | effort to recover hydrocarbons from a pool by the injection of | ||||||
| 15 | fluids, gases, or other substances to maintain, restore, or | ||||||
| 16 | augment natural reservoir energy, or by introducing immiscible | ||||||
| 17 | or miscible gases, chemicals, or other substances, or heat, or | ||||||
| 18 | by in-situ combustion, or by any combination thereof. | ||||||
| 19 | "Field" means the same general surface area that is | ||||||
| 20 | underlaid or appears to be underlaid by one or more pools. | ||||||
| 21 | "Fresh water" means surface and subsurface water in its | ||||||
| 22 | natural state useful as drinking water for human consumption, | ||||||
| 23 | domestic livestock, irrigation, industrial, municipal, and | ||||||
| 24 | recreational purposes, and that will support aquatic life and | ||||||
| 25 | contains less than 10,000 ppm of total dissolved solids. | ||||||
| 26 | "Person" means any natural person, corporation, | ||||||
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| 1 | association, partnership, governmental agency or other legal | ||||||
| 2 | entity, receiver, trustee, guardian, executor, administrator, | ||||||
| 3 | fiduciary or representative of any kind. | ||||||
| 4 | "Oil" means natural crude oil or petroleum and other | ||||||
| 5 | hydrocarbons, regardless of gravity, which are produced at the | ||||||
| 6 | well in liquid form by ordinary production methods or by the | ||||||
| 7 | use of an oil and gas separator and which are not the result of | ||||||
| 8 | condensation of gas after it leaves the underground reservoir. | ||||||
| 9 | "Gas" means all natural gas, including casinghead gas, and | ||||||
| 10 | all other natural hydrocarbons not defined above as oil. | ||||||
| 11 | "Mineral owner's royalty" means the share of oil and gas | ||||||
| 12 | production reserved in an oil and gas lease, free of all costs | ||||||
| 13 | by an owner of the minerals, whether denominated royalty or | ||||||
| 14 | overriding royalty. | ||||||
| 15 | "Mining Board" means the State Mining Board in the | ||||||
| 16 | Department of Natural Resources Office of Mines and Minerals. | ||||||
| 17 | "Oil" means natural crude oil or petroleum and other | ||||||
| 18 | hydrocarbons, regardless of gravity, which are produced at the | ||||||
| 19 | well in liquid form by ordinary production methods or by the | ||||||
| 20 | use of an oil and gas separator, which are not the result of | ||||||
| 21 | condensation of gas after it leaves the underground reservoir. | ||||||
| 22 | "Orphan well" means a well for which: (1) no fee | ||||||
| 23 | assessment under Section 19.7 of this Act has been paid or no | ||||||
| 24 | other bond coverage has been provided for 2 consecutive years; | ||||||
| 25 | (2) no oil or gas has been produced from the well or from the | ||||||
| 26 | lease or unit on which the well is located for 2 consecutive | ||||||
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| 1 | years; and (3) no permittee or owner can be identified or | ||||||
| 2 | located by the Department. "Orphan well" includes a well that | ||||||
| 3 | has been drilled for purposes other than those for which a | ||||||
| 4 | permit is required under this Act if the well is a conduit for | ||||||
| 5 | oil or salt water intrusions into fresh water zones or onto the | ||||||
| 6 | surface, which may be caused by oil and gas operations. | ||||||
| 7 | "Owner" means the person who has the right to drill into | ||||||
| 8 | and produce from any pool and to appropriate the production | ||||||
| 9 | either for the person or for the person and another, others, or | ||||||
| 10 | solely for others, excluding the mineral owner's royalty, if | ||||||
| 11 | the right to drill and produce has been granted under an oil | ||||||
| 12 | and gas lease. "Owner" includes a person granted the right to | ||||||
| 13 | drill and operate an injection (Class II UIC) well independent | ||||||
| 14 | of the right to drill for and produce oil or gas. When the | ||||||
| 15 | right to drill, produce, and appropriate production is held by | ||||||
| 16 | more than one person, then all persons holding these rights | ||||||
| 17 | may designate the owner by a written operating agreement or | ||||||
| 18 | similar written agreement. In the absence of such an | ||||||
| 19 | agreement, and subject to the provisions of Sections 22.2 and | ||||||
| 20 | 23.1 through 23.16 of this Act, the owner shall be the person | ||||||
| 21 | designated in writing by a majority of the persons in interest | ||||||
| 22 | holding these rights. | ||||||
| 23 | "Permit" means the Department's written authorization | ||||||
| 24 | allowing a well to be drilled, deepened, converted, or | ||||||
| 25 | operated by an owner. | ||||||
| 26 | "Permittee" means the owner holding or required to hold | ||||||
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| 1 | the permit, and who is also responsible for paying assessments | ||||||
| 2 | in accordance with Section 19.7 of this Act, and, where | ||||||
| 3 | applicable, executing and filing the bond associated with the | ||||||
| 4 | well as principal, and who is responsible for compliance with | ||||||
| 5 | all statutory and regulatory requirements pertaining to the | ||||||
| 6 | well. | ||||||
| 7 | When the right and responsibility for operating a well is | ||||||
| 8 | vested in a receiver or trustee appointed by a court of | ||||||
| 9 | competent jurisdiction, the permit shall be issued to the | ||||||
| 10 | receiver or trustee. | ||||||
| 11 | "Person" means any natural person, corporation, | ||||||
| 12 | association, partnership, governmental agency, including any | ||||||
| 13 | other legal entity, receiver, trustee, guardian, executor, | ||||||
| 14 | administrator, fiduciary, or representative of any kind. | ||||||
| 15 | "Pool" means a natural, underground reservoir containing | ||||||
| 16 | in whole or in part, a natural accumulation of oil or gas, or | ||||||
| 17 | both. Each productive zone or stratum of a general structure, | ||||||
| 18 | which is completely separated from any other zone or stratum | ||||||
| 19 | in the structure, is deemed a separate "pool" as used herein. | ||||||
| 20 | "Produced water" means water, regardless of chloride and | ||||||
| 21 | total dissolved solids content that is produced in conjunction | ||||||
| 22 | with oil and natural gas production or natural gas storage | ||||||
| 23 | operations. | ||||||
| 24 | "Temporary abandonment status" means a well that has | ||||||
| 25 | received an authorization for temporary abandonment status | ||||||
| 26 | from the Department. | ||||||
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| 1 | "Vacuum" means pressure that is reduced below the pressure | ||||||
| 2 | of the atmosphere. | ||||||
| 3 | "Field" means the same general surface area which is | ||||||
| 4 | underlaid or appears to be underlaid by one or more pools. | ||||||
| 5 | "Permit" means the Department's written authorization | ||||||
| 6 | allowing a well to be drilled, deepened, converted, or | ||||||
| 7 | operated by an owner. | ||||||
| 8 | "Permittee" means the owner holding or required to hold | ||||||
| 9 | the permit, and who is also responsible for paying assessments | ||||||
| 10 | in accordance with Section 19.7 of this Act and, where | ||||||
| 11 | applicable, executing and filing the bond associated with the | ||||||
| 12 | well as principal and who is responsible for compliance with | ||||||
| 13 | all statutory and regulatory requirements pertaining to the | ||||||
| 14 | well. | ||||||
| 15 | When the right and responsibility for operating a well is | ||||||
| 16 | vested in a receiver or trustee appointed by a court of | ||||||
| 17 | competent jurisdiction, the permit shall be issued to the | ||||||
| 18 | receiver or trustee. | ||||||
| 19 | "Orphan Well" means a well for which: (1) no fee | ||||||
| 20 | assessment under Section 19.7 of this Act has been paid or no | ||||||
| 21 | other bond coverage has been provided for 2 consecutive years; | ||||||
| 22 | (2) no oil or gas has been produced from the well or from the | ||||||
| 23 | lease or unit on which the well is located for 2 consecutive | ||||||
| 24 | years; and (3) no permittee or owner can be identified or | ||||||
| 25 | located by the Department. Orphaned wells include wells that | ||||||
| 26 | may have been drilled for purposes other than those for which a | ||||||
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| 1 | permit is required under this Act if the well is a conduit for | ||||||
| 2 | oil or salt water intrusions into fresh water zones or onto the | ||||||
| 3 | surface which may be caused by oil and gas operations. | ||||||
| 4 | "Owner" means the person who has the right to drill into | ||||||
| 5 | and produce from any pool, and to appropriate the production | ||||||
| 6 | either for the person or for the person and another, or others, | ||||||
| 7 | or solely for others, excluding the mineral owner's royalty if | ||||||
| 8 | the right to drill and produce has been granted under an oil | ||||||
| 9 | and gas lease. An owner may also be a person granted the right | ||||||
| 10 | to drill and operate an injection (Class II UIC) well | ||||||
| 11 | independent of the right to drill for and produce oil or gas. | ||||||
| 12 | When the right to drill, produce, and appropriate production | ||||||
| 13 | is held by more than one person, then all persons holding these | ||||||
| 14 | rights may designate the owner by a written operating | ||||||
| 15 | agreement or similar written agreement. In the absence of such | ||||||
| 16 | an agreement, and subject to the provisions of Sections 22.2 | ||||||
| 17 | and 23.1 through 23.16 of this Act, the owner shall be the | ||||||
| 18 | person designated in writing by a majority in interest of the | ||||||
| 19 | persons holding these rights. | ||||||
| 20 | "Department" means the Department of Natural Resources. | ||||||
| 21 | "Director" means the Director of Natural Resources. | ||||||
| 22 | "Mining Board" means the State Mining Board in the | ||||||
| 23 | Department of Natural Resources, Office of Mines and Minerals. | ||||||
| 24 | "Mineral Owner's Royalty" means the share of oil and gas | ||||||
| 25 | production reserved in an oil and gas lease free of all costs | ||||||
| 26 | by an owner of the minerals whether denominated royalty or | ||||||
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| 1 | overriding royalty. | ||||||
| 2 | "Waste" means "physical waste" as that term is generally | ||||||
| 3 | understood in the oil and gas industry, and further includes: | ||||||
| 4 | (1) the locating, drilling, and producing of any oil | ||||||
| 5 | or gas well or wells drilled contrary to the valid order, | ||||||
| 6 | rules and regulations adopted by the Department under the | ||||||
| 7 | provisions of this Act; | ||||||
| 8 | (2) permitting the migration of oil, gas, or water | ||||||
| 9 | from the stratum in which it is found, into other strata, | ||||||
| 10 | thereby ultimately resulting in the loss of recoverable | ||||||
| 11 | oil, gas or both; | ||||||
| 12 | (3) the drowning with water of any stratum or part | ||||||
| 13 | thereof capable of producing oil or gas, except for | ||||||
| 14 | secondary recovery purposes; | ||||||
| 15 | (4) the unreasonable damage to underground, fresh or | ||||||
| 16 | mineral water supply, workable coal seams, or other | ||||||
| 17 | mineral deposits in the operations for the discovery, | ||||||
| 18 | development, production, or handling of oil and gas; | ||||||
| 19 | (5) the unnecessary or excessive surface loss or | ||||||
| 20 | destruction of oil or gas resulting from evaporation, | ||||||
| 21 | seepage, leakage or fire, especially such loss or | ||||||
| 22 | destruction incident to or resulting from the escape of | ||||||
| 23 | gas into the open air in excessive or unreasonable | ||||||
| 24 | amounts, provided, however, it shall not be unlawful for | ||||||
| 25 | the operator or owner of any well producing both oil and | ||||||
| 26 | gas to burn such gas in flares when such gas is, under the | ||||||
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| 1 | other provisions of this Act, lawfully produced, and where | ||||||
| 2 | there is no market at the well for such escaping gas; and | ||||||
| 3 | where the same is used for the extraction of casinghead | ||||||
| 4 | gas, it shall not be unlawful for the operator of the plant | ||||||
| 5 | after the process of extraction is completed, to burn such | ||||||
| 6 | residue in flares when there is no market at such plant for | ||||||
| 7 | such residue gas; | ||||||
| 8 | (6) permitting unnecessary fire hazards; and | ||||||
| 9 | (7) permitting unnecessary damage to or destruction of | ||||||
| 10 | the surface, soil, animal, fish or aquatic life or | ||||||
| 11 | property from oil or gas operations. | ||||||
| 12 | "Drilling Unit" means the surface area allocated by an | ||||||
| 13 | order or regulation of the Department to the drilling of a | ||||||
| 14 | single well for the production of oil or gas from an individual | ||||||
| 15 | pool. | ||||||
| 16 | "Enhanced Recovery Method" means any method used in an | ||||||
| 17 | effort to recover hydrocarbons from a pool by injection of | ||||||
| 18 | fluids, gases or other substances to maintain, restore or | ||||||
| 19 | augment natural reservoir energy, or by introducing immiscible | ||||||
| 20 | or miscible gases, chemicals, other substances or heat or by | ||||||
| 21 | in-situ combustion, or by any combination thereof. | ||||||
| 22 | "Well-Site Equipment" means any production-related | ||||||
| 23 | equipment or materials specific to the well, including motors, | ||||||
| 24 | pumps, pump jacks, tanks, tank batteries, separators, | ||||||
| 25 | compressors, casing, tubing, and rods. | ||||||
| 26 | "Temporary abandonment status" means a well that has | ||||||
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| 1 | received an authorization for temporary abandonment status | ||||||
| 2 | from the Department. | ||||||
| 3 | (Source: P.A. 102-1017, eff. 1-1-23.) | ||||||
| 4 | (225 ILCS 725/6) (from Ch. 96 1/2, par. 5409) | ||||||
| 5 | Sec. 6. The Department shall have the authority to conduct | ||||||
| 6 | hearings and to make such reasonable rules as may be necessary | ||||||
| 7 | from time to time in the proper administration and enforcement | ||||||
| 8 | of this Act, including the adoption of rules and the holding of | ||||||
| 9 | hearings for the following purposes: | ||||||
| 10 | (1) To require the drilling, casing and plugging of | ||||||
| 11 | wells to be done in such a manner as to prevent the | ||||||
| 12 | migration of oil or gas from one stratum to another; to | ||||||
| 13 | prevent the intrusion of water into oil, gas or coal | ||||||
| 14 | strata; to prevent the pollution of fresh water supplies | ||||||
| 15 | by oil, gas or salt water. | ||||||
| 16 | (2) To require the person desiring or proposing to | ||||||
| 17 | drill, deepen or convert any well for the exploration or | ||||||
| 18 | production of oil or gas, for injection or water supply in | ||||||
| 19 | connection with enhanced recovery projects, for the | ||||||
| 20 | disposal of salt water, brine, or other oil or gas field | ||||||
| 21 | wastes, or for input, withdrawal, or observation in | ||||||
| 22 | connection with the storage of natural gas or other liquid | ||||||
| 23 | or gaseous hydrocarbons before commencing the drilling, | ||||||
| 24 | deepening or conversion of any such well, to make | ||||||
| 25 | application to the Department upon such form as the | ||||||
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| 1 | Department may prescribe and to comply with the provisions | ||||||
| 2 | of this Section. The drilling, deepening or conversion of | ||||||
| 3 | any well is hereby prohibited until such application is | ||||||
| 4 | made and the applicant is issued a permit therefor as | ||||||
| 5 | provided by this Act. Each application for a well permit | ||||||
| 6 | shall include the following: (A) The exact location of the | ||||||
| 7 | well, (B) the name and address of the manager, operator, | ||||||
| 8 | contractor, driller, or any other person responsible for | ||||||
| 9 | the conduct of drilling operations, (C) the proposed depth | ||||||
| 10 | of the well, (D) lease ownership information, and (E) such | ||||||
| 11 | other relevant information as the Department may deem | ||||||
| 12 | necessary or convenient to effectuate the purposes of this | ||||||
| 13 | Act. | ||||||
| 14 | (2.5) Additionally, for each applicant who has not | ||||||
| 15 | been issued a permit that is (i) not of record with the | ||||||
| 16 | Department on the effective date of this amendatory Act of | ||||||
| 17 | the 104th General Assembly, or (ii) a permittee on record | ||||||
| 18 | with the Department but who has failed to make payments of | ||||||
| 19 | the assessments as required under Section 19.7 of this Act | ||||||
| 20 | at any time in the preceding 5 years of the application, | ||||||
| 21 | the permittee or applicant shall execute, as principal, | ||||||
| 22 | and file with the Department a bond, executed by a surety | ||||||
| 23 | authorized to transact business in this State, in an | ||||||
| 24 | amount estimated to cover the cost of plugging the well | ||||||
| 25 | and restoring the well site and shall set at the following | ||||||
| 26 | rates: | ||||||
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| 1 | (A) $10,000 for one well; | ||||||
| 2 | (B) $25,000 in total covering a blanket bond for | ||||||
| 3 | up to 10 wells; | ||||||
| 4 | (C) $50,000 in total covering a blanket bond for | ||||||
| 5 | up to 50 wells; or | ||||||
| 6 | (D) $100,000 in total covering a blanket bond for | ||||||
| 7 | up to 100 wells. | ||||||
| 8 | A blanket bond covering more than 100 wells shall be | ||||||
| 9 | increased to include the bond amount, as provided in this | ||||||
| 10 | paragraph (2.5), for the total number of wells more than | ||||||
| 11 | 100 that are covered by the blanket bond. Such bond shall | ||||||
| 12 | be submitted to the Department before drilling, deepening, | ||||||
| 13 | converting, or operating any well for which a new or | ||||||
| 14 | transfer permit is required and that has not previously | ||||||
| 15 | been plugged and abandoned in accordance with the Act. The | ||||||
| 16 | Department shall release the bond if any of the following | ||||||
| 17 | are met: | ||||||
| 18 | (i) all wells covered by the bond are plugged and | ||||||
| 19 | all well sites are restored in accordance with this | ||||||
| 20 | Act and administrative rules; | ||||||
| 21 | (ii) all wells covered by the bond are transferred | ||||||
| 22 | in accordance with this Act and administrative rules; | ||||||
| 23 | or | ||||||
| 24 | (iii) the permittee pays assessments to the | ||||||
| 25 | Department in accordance with Section 19.7 of this Act | ||||||
| 26 | for 5 consecutive years from the date of issuance of a | ||||||
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| 1 | permit after the effective date of this amendatory Act | ||||||
| 2 | of the 104th General Assembly and the permittee is not | ||||||
| 3 | in violation of this Act or any administrative rules. | ||||||
| 4 | In lieu of a surety bond, the applicant may provide | ||||||
| 5 | certificates of deposit or irrevocable letters of credit | ||||||
| 6 | under such terms and conditions as the Department may | ||||||
| 7 | provide by rule. | ||||||
| 8 | The sureties on all bonds in effect on this amendatory | ||||||
| 9 | Act of the 104th General Assembly shall remain liable as | ||||||
| 10 | sureties in accordance with their undertakings until | ||||||
| 11 | released by the Department from further liability under | ||||||
| 12 | the Act. The principal on each bond in effect on the | ||||||
| 13 | effective date of this amendatory Act of the 104th General | ||||||
| 14 | Assembly shall be released from the obligation of | ||||||
| 15 | maintaining the bond if the well covered by a surety bond | ||||||
| 16 | has been plugged and the well site restored in accordance | ||||||
| 17 | with the Department's rules or the principal of the surety | ||||||
| 18 | has paid the initial assessment in accordance with Section | ||||||
| 19 | 19.7 and no well or well site covered by the surety bond is | ||||||
| 20 | in violation of the Act. | ||||||
| 21 | No permit shall be issued to a corporation | ||||||
| 22 | incorporated outside of Illinois until the corporation has | ||||||
| 23 | been authorized to do business in Illinois. | ||||||
| 24 | No permit shall be issued to an individual, | ||||||
| 25 | partnership, or other unincorporated entity that is not a | ||||||
| 26 | resident of Illinois until that individual, partnership, | ||||||
| |||||||
| |||||||
| 1 | or other unincorporated entity has irrevocably consented | ||||||
| 2 | to be sued in Illinois. | ||||||
| 3 | (3) To require the person assigning, transferring, or | ||||||
| 4 | selling any well for which a permit is required under this | ||||||
| 5 | Act to notify the Department of the change of ownership. | ||||||
| 6 | The notification shall be on a form prescribed by the | ||||||
| 7 | Department, shall be executed by the current permittee and | ||||||
| 8 | by the new permittee, or their authorized representatives, | ||||||
| 9 | and shall be filed with the Department within 30 days | ||||||
| 10 | after the effective date of the assignment, transfer or | ||||||
| 11 | sale. Within the 30-day 30 day notification period and | ||||||
| 12 | prior to operating the well, the new permittee shall pay | ||||||
| 13 | the required well transfer fee and, where applicable, file | ||||||
| 14 | with the Department the bond required under subsection | ||||||
| 15 | (2.5) of this Section. | ||||||
| 16 | (4) To require the filing with the State Geological | ||||||
| 17 | Survey of all geophysical logs, a well drilling report and | ||||||
| 18 | drill cuttings or cores, if cores are required, within 90 | ||||||
| 19 | days after drilling ceases; and to file a completion | ||||||
| 20 | report with the Department within 30 days after the date | ||||||
| 21 | of first production following initial drilling or any | ||||||
| 22 | reworking, or after the plugging of the well, if a dry | ||||||
| 23 | hole. A copy of each completion report submitted to the | ||||||
| 24 | Department shall be delivered to the State Geological | ||||||
| 25 | Survey. The Department and the State Geological Survey | ||||||
| 26 | shall keep the reports confidential, if requested in | ||||||
| |||||||
| |||||||
| 1 | writing by the permittee, for 2 years after the date the | ||||||
| 2 | permit is issued by the Department. This confidentiality | ||||||
| 3 | requirement shall not prohibit the use of the report for | ||||||
| 4 | research purposes, provided the State Geological Survey | ||||||
| 5 | does not publish specific data or identify the well to | ||||||
| 6 | which the completion report pertains. | ||||||
| 7 | (5) To prevent "blowouts", "caving" and "seepage" in | ||||||
| 8 | the same sense that conditions indicated by such terms are | ||||||
| 9 | generally understood in the oil and gas business. | ||||||
| 10 | (6) To prevent fires. | ||||||
| 11 | (7) To ascertain and identify the ownership of all oil | ||||||
| 12 | and gas wells, producing leases, refineries, tanks, | ||||||
| 13 | plants, structures, and all storage and transportation | ||||||
| 14 | equipment and facilities. | ||||||
| 15 | (8) To regulate the use of any enhanced recovery | ||||||
| 16 | method in oil pools and oil fields. | ||||||
| 17 | (9) To regulate or prohibit the use of vacuum, | ||||||
| 18 | including charging a vacuum permit application fee of up | ||||||
| 19 | to $300 per permit. | ||||||
| 20 | (10) To regulate the spacing of wells, the issuance of | ||||||
| 21 | permits, and the establishment of drilling units. | ||||||
| 22 | (11) To regulate directional drilling of oil or gas | ||||||
| 23 | wells. | ||||||
| 24 | (12) To regulate the plugging of wells. | ||||||
| 25 | (13) To require that wells for which no logs or | ||||||
| 26 | unsatisfactory logs are supplied shall be completely | ||||||
| |||||||
| |||||||
| 1 | plugged with cement from bottom to top. | ||||||
| 2 | (14) To require a description in such form as is | ||||||
| 3 | determined by the Department of the method of well | ||||||
| 4 | plugging for each well, indicating the character of | ||||||
| 5 | material used and the positions and dimensions of each | ||||||
| 6 | plug. | ||||||
| 7 | (15) To prohibit waste, as defined in this Act. | ||||||
| 8 | (16) To require the keeping of such records, the | ||||||
| 9 | furnishing of such relevant information and the | ||||||
| 10 | performance of such tests as the Department may deem | ||||||
| 11 | necessary to carry into effect the purposes of this Act. | ||||||
| 12 | (17) To regulate the disposal of salt or | ||||||
| 13 | sulphur-bearing water and any oil field waste produced in | ||||||
| 14 | the operation of any oil or gas well. | ||||||
| 15 | (18) To prescribe rules, conduct inspections and | ||||||
| 16 | require compliance with health and safety standards for | ||||||
| 17 | the protection of persons working underground in | ||||||
| 18 | connection with any oil and gas operations. For the | ||||||
| 19 | purposes of this paragraph, oil and gas operations include | ||||||
| 20 | drilling or excavation, production operations, plugging or | ||||||
| 21 | filling in and sealing, or any other work requiring the | ||||||
| 22 | presence of workers in shafts or excavations beneath the | ||||||
| 23 | surface of the earth. Rules promulgated by the Department | ||||||
| 24 | may include minimum qualifications of persons performing | ||||||
| 25 | tasks affecting the health and safety of workers | ||||||
| 26 | underground, minimum standards for the operation and | ||||||
| |||||||
| |||||||
| 1 | maintenance of equipment, and safety procedures and | ||||||
| 2 | precautions, and shall conform, as nearly as practicable, | ||||||
| 3 | to corresponding qualifications, standards and procedures | ||||||
| 4 | prescribed under the Coal Mining Act. | ||||||
| 5 | (19) To deposit the amount of any forfeited surety | ||||||
| 6 | bond or other security in the Plugging and Restoration | ||||||
| 7 | Fund, a special fund in the State treasury which is hereby | ||||||
| 8 | created; to deposit into the Fund any amounts collected, | ||||||
| 9 | reimbursed or recovered by the Department under Sections | ||||||
| 10 | 19.5, 19.6 and 19.7 of this Act; to accept, receive, and | ||||||
| 11 | deposit into the Fund any grants, gifts or other funds | ||||||
| 12 | which may be made available from public or private sources | ||||||
| 13 | and all earnings received from investment of monies in the | ||||||
| 14 | Fund; and to make expenditures from the Fund for the | ||||||
| 15 | purposes of plugging, replugging or repairing any well, | ||||||
| 16 | and restoring the site of any well, determined by the | ||||||
| 17 | Department to be abandoned or ordered by the Department to | ||||||
| 18 | be plugged, replugged, repaired or restored under Sections | ||||||
| 19 | 8a, 19 or 19.1 of this Act, including expenses in | ||||||
| 20 | administering the Fund. | ||||||
| 21 | For the purposes of this Act, the State Geological Survey | ||||||
| 22 | shall co-operate with the Department in making available its | ||||||
| 23 | scientific and technical information on the oil and gas | ||||||
| 24 | resources of the State, and the Department shall in turn | ||||||
| 25 | furnish a copy to the State Geological Survey of all drilling | ||||||
| 26 | permits as issued, and such other drilling and operating data | ||||||
| |||||||
| |||||||
| 1 | received or secured by the Department which are pertinent to | ||||||
| 2 | scientific research on the State's mineral resources. | ||||||
| 3 | (Source: P.A. 104-150, eff. 1-1-26.) | ||||||
| 4 | (225 ILCS 725/8a) (from Ch. 96 1/2, par. 5413) | ||||||
| 5 | Sec. 8a. When an inspector or other authorized employee or | ||||||
| 6 | agent of the Department determines that any permittee, or any | ||||||
| 7 | person engaged in conduct or activities required to be | ||||||
| 8 | permitted under this Act, is in violation of any requirement | ||||||
| 9 | of this Act or the rules adopted hereunder or any permit | ||||||
| 10 | condition, or has falsified or otherwise misstated any | ||||||
| 11 | information on or relative to any application, permit, | ||||||
| 12 | required record, or other document required to be submitted to | ||||||
| 13 | the Department by this Act or any rules or procedures adopted | ||||||
| 14 | under this Act, a notice of violation shall be completed and | ||||||
| 15 | delivered to the Director or his designee. | ||||||
| 16 | The notice shall contain: | ||||||
| 17 | 1. the nature of the violation; | ||||||
| 18 | 2. the action needed to abate the violation, including | ||||||
| 19 | any appropriate remedial measures to prevent future | ||||||
| 20 | violation such as replacement, repair, testing and | ||||||
| 21 | reworking a well and any appurtenances and equipment; | ||||||
| 22 | 3. the time within which the violation is to be | ||||||
| 23 | abated; and | ||||||
| 24 | 4. any factors known to the person completing the | ||||||
| 25 | notice of violation in aggravation or mitigation and the | ||||||
| |||||||
| |||||||
| 1 | existence of any factors indicating that the permit should | ||||||
| 2 | be conditioned or modified. | ||||||
| 3 | Upon receipt of a notice of violation, the Director shall | ||||||
| 4 | conduct his investigation and may affirm, vacate or modify the | ||||||
| 5 | notice of violation. In determining whether to take actions in | ||||||
| 6 | addition to remedial action necessary to abate a violation, | ||||||
| 7 | the Director shall consider the person's or permittee's | ||||||
| 8 | history of previous violations including violations at other | ||||||
| 9 | locations and under other permits, the seriousness of the | ||||||
| 10 | violation including any irreparable harm to the environment or | ||||||
| 11 | damage to property, the degree of culpability of the person or | ||||||
| 12 | permittee and the existence of any additional conditions or | ||||||
| 13 | factors in aggravation or mitigation including information | ||||||
| 14 | provided by the person or permittee. | ||||||
| 15 | The Director shall serve the person or permittee with his | ||||||
| 16 | decision at the conclusion of the investigation. Modification | ||||||
| 17 | of the notice of violation may include: | ||||||
| 18 | 1. any different or additional remedial action | ||||||
| 19 | required to abate the violation and the time within which | ||||||
| 20 | the violation must be abated; | ||||||
| 21 | 2. the assessment of civil penalties not to exceed | ||||||
| 22 | $5,000 for each and every falsification or misstatement of | ||||||
| 23 | information and civil penalties not to exceed $4,000 per | ||||||
| 24 | and $1,000 a day for each and every act of violation not | ||||||
| 25 | including a falsification or misstatement of information; | ||||||
| 26 | 3. probationary or permanent modification or | ||||||
| |||||||
| |||||||
| 1 | conditions on the permit which may include special | ||||||
| 2 | monitoring or reporting requirements; and | ||||||
| 3 | 4. revocation of the permit. | ||||||
| 4 | The Director's decision shall provide that the person or | ||||||
| 5 | permittee has the right to request a hearing. | ||||||
| 6 | The Director's decision affirming, vacating or modifying | ||||||
| 7 | the notice of violation shall be considered served when mailed | ||||||
| 8 | by first class mail to the person or permittee at his last | ||||||
| 9 | known address. | ||||||
| 10 | A person or permittee shall have 30 days from the date of | ||||||
| 11 | service of the Director's decision to request a hearing. If | ||||||
| 12 | the Director's decision includes the assessment of a civil | ||||||
| 13 | penalty, the person or permittee charged with the penalty | ||||||
| 14 | shall pay the penalty in full or, if the person or permittee | ||||||
| 15 | wishes to contest either the amount of the penalty or the fact | ||||||
| 16 | of the violation, submit the assessed amount, with the request | ||||||
| 17 | for a hearing, to be held in escrow. The filing of a request | ||||||
| 18 | for a hearing shall not operate as a stay of the Director's | ||||||
| 19 | decision. All civil penalties finally assessed and paid to the | ||||||
| 20 | Department shall be deposited in the Underground Resources | ||||||
| 21 | Conservation Enforcement Fund. | ||||||
| 22 | Any person who willfully or knowingly authorized, ordered, | ||||||
| 23 | or carried out any violation cited in the Director's decision | ||||||
| 24 | shall be subject to the same actions, including civil | ||||||
| 25 | penalties, which may be imposed on the person or permittee | ||||||
| 26 | under this Section. | ||||||
| |||||||
| |||||||
| 1 | Upon receipt of a request, the Department shall provide an | ||||||
| 2 | opportunity for a formal hearing upon not less than 5 days | ||||||
| 3 | notice. The hearing shall be conducted by the Director or | ||||||
| 4 | anyone designated by him for such purpose, and shall be | ||||||
| 5 | located and conducted in accordance with the rules of the | ||||||
| 6 | Department. Failure of the person or permittee to timely | ||||||
| 7 | request a hearing or, if a civil penalty has been assessed, to | ||||||
| 8 | timely tender the assessed civil penalty, shall constitute a | ||||||
| 9 | waiver of all legal rights to contest the Director's decision, | ||||||
| 10 | including the amount of any civil penalty. Within 30 days of | ||||||
| 11 | the close of the hearing record or expiration of the time to | ||||||
| 12 | request a hearing, the Department shall issue a final | ||||||
| 13 | administrative order. | ||||||
| 14 | If, at the expiration of the period of time originally | ||||||
| 15 | fixed in the Director's decision or in any subsequent | ||||||
| 16 | extension of time granted by the Department, the Department | ||||||
| 17 | finds that the violation has not been abated, it may | ||||||
| 18 | immediately order the cessation of operations or the portions | ||||||
| 19 | thereof relevant to the violation. Such cessation order shall | ||||||
| 20 | be served in the manner and within the time prescribed in | ||||||
| 21 | Section 19.1 of this Act. | ||||||
| 22 | Pending the holding of any hearing or entry of a final | ||||||
| 23 | administrative order under this Section, the person or | ||||||
| 24 | permittee to whom the cessation order was issued may file a | ||||||
| 25 | written request for temporary relief subject to the same terms | ||||||
| 26 | and conditions as are provided for in Section 19.1 of this Act. | ||||||
| |||||||
| |||||||
| 1 | If the Department finds that a person or permittee has | ||||||
| 2 | failed to comply with a final administrative order, the | ||||||
| 3 | Department may immediately order the cessation of operations | ||||||
| 4 | or the portions thereof relevant to the final administrative | ||||||
| 5 | order. Such cessation order shall be served in the manner and | ||||||
| 6 | within the time prescribed in Section 19.1 of this Act. The | ||||||
| 7 | Department shall commence a hearing within 5 days after | ||||||
| 8 | issuance of a cessation order and shall conclude such hearing | ||||||
| 9 | without appreciable delay. At the hearing the Department shall | ||||||
| 10 | have the burden of proving that the person or permittee has not | ||||||
| 11 | complied with the final administrative order. A cessation | ||||||
| 12 | order issued under this paragraph shall continue in effect | ||||||
| 13 | until modified, vacated, or terminated by the Department. | ||||||
| 14 | The Department shall refuse to issue a permit or permits, | ||||||
| 15 | and shall revoke any permit or permits previously issued if: | ||||||
| 16 | (1) the applicant has falsified or otherwise misstated | ||||||
| 17 | any information on or relative to the permit application; | ||||||
| 18 | (2) the applicant has failed to abate a violation of | ||||||
| 19 | the Act specified in a final administrative decision of | ||||||
| 20 | the Department; | ||||||
| 21 | (3) an officer, director, partner, or person with an | ||||||
| 22 | interest in the applicant exceeding 5% failed to abate a | ||||||
| 23 | violation of the Act specified in a final administrative | ||||||
| 24 | decision of the Department; or | ||||||
| 25 | (4) the applicant is an officer, director, partner, or | ||||||
| 26 | person with an interest exceeding 5% in another entity | ||||||
| |||||||
| |||||||
| 1 | that has failed to abate a violation of the Act specified | ||||||
| 2 | in a final administrative decision of the Department. | ||||||
| 3 | (Source: P.A. 99-137, eff. 1-1-16.) | ||||||
| 4 | (225 ILCS 725/8e) | ||||||
| 5 | Sec. 8e. Temporary abandonment status fees. | ||||||
| 6 | (a) The Department shall assess and collect annual fees of | ||||||
| 7 | $100 per well for each well that is in temporary abandonment | ||||||
| 8 | status. | ||||||
| 9 | (b) All annual fees collected pursuant to subsection (a) | ||||||
| 10 | shall be deposited as follows: | ||||||
| 11 | (1) one-half of all such fees shall be deposited into | ||||||
| 12 | placed in the Plugging and Restoration Fund; and | ||||||
| 13 | (2) one-half of all such fees so deposited shall be | ||||||
| 14 | used solely for placed in the Landowner Grant Program. | ||||||
| 15 | (Source: P.A. 102-1017, eff. 1-1-23.) | ||||||
| 16 | (225 ILCS 725/14) (from Ch. 96 1/2, par. 5420) | ||||||
| 17 | Sec. 14. Each application for a permit to drill, deepen, | ||||||
| 18 | convert, or amend shall be accompanied by the required fee of | ||||||
| 19 | $400. The fee for an application for a permit to oil lease road | ||||||
| 20 | shall be $150. A fee of $75 for the first 100 wells and $50 for | ||||||
| 21 | each well in excess of 100 shall be paid by the new owner for | ||||||
| 22 | each transfer of well ownership. Except for the assessments | ||||||
| 23 | required to be deposited in the Plugging and Restoration Fund | ||||||
| 24 | under Section 19.7 of this Act and any other deposits required | ||||||
| |||||||
| |||||||
| 1 | to be deposited in the Plugging and Restoration Fund under | ||||||
| 2 | this Act, all fees assessed and collected under this Act shall | ||||||
| 3 | be deposited in the Underground Resources Conservation | ||||||
| 4 | Enforcement Fund. The moneys monies deposited into the | ||||||
| 5 | Plugging and Restoration Fund or the Underground Resources | ||||||
| 6 | Conservation Enforcement Fund under this Section or deposited | ||||||
| 7 | into the Plugging and Restoration Fund under Section 26 shall | ||||||
| 8 | not be subject to administrative charges or chargebacks unless | ||||||
| 9 | otherwise authorized by this Act. | ||||||
| 10 | On and after July 1, 2022, any fees that are created by or | ||||||
| 11 | increased by this amendatory Act of the 102nd General Assembly | ||||||
| 12 | in this Section shall be deposited into the Plugging and | ||||||
| 13 | Restoration Fund. | ||||||
| 14 | (Source: P.A. 102-1017, eff. 1-1-23.) | ||||||
| 15 | (225 ILCS 725/19.10 new) | ||||||
| 16 | Sec. 19.10. Leaking previously plugged well. | ||||||
| 17 | (a) If any oil or Class II fluids are potentially leaking | ||||||
| 18 | into the fresh water zones or to the surface, as determined by | ||||||
| 19 | geologic and field investigation, through a well plugged under | ||||||
| 20 | the supervision of the Department, the Department shall notify | ||||||
| 21 | the last permittee of record for the well when the well was | ||||||
| 22 | last plugged. The last permittee shall then undertake the | ||||||
| 23 | necessary actions to comply with this Section. If the last | ||||||
| 24 | permittee no longer exists, cannot be located, does not take | ||||||
| 25 | the necessary actions, or does not diligently pursue the | ||||||
| |||||||
| |||||||
| 1 | necessary actions, then the current permittee of the lease | ||||||
| 2 | where the well is located shall take the necessary actions. | ||||||
| 3 | The current permittee, if required to undertake any | ||||||
| 4 | containment or plugging operations pursuant to this Section, | ||||||
| 5 | shall have a right of action against the last permittee of | ||||||
| 6 | record for the well when the well was last plugged for the | ||||||
| 7 | reasonable cost and expense incurred in plugging, replugging, | ||||||
| 8 | repairing, or restoring the well and shall have a lien | ||||||
| 9 | enforceable upon the interest of the obligated persons in | ||||||
| 10 | accordance with Section 19.5. Pending plugging of the well, | ||||||
| 11 | all injection wells within a quarter-mile radius of the | ||||||
| 12 | leaking well shall be shut in until the leaking well is | ||||||
| 13 | plugged. The leaking or previously leaking well shall be | ||||||
| 14 | plugged, regardless of well status at the time of plugging. | ||||||
| 15 | (b) If the current permittee of the lease is required to | ||||||
| 16 | undertake any containment actions pursuant to this Section and | ||||||
| 17 | does not take the required actions to contain the leaking | ||||||
| 18 | fluids within 24 hours after notification by the Department, | ||||||
| 19 | or within the time frame of any extensions granted by the | ||||||
| 20 | Department because of extenuating circumstances, such as | ||||||
| 21 | weather conditions, the current permittee shall not operate | ||||||
| 22 | any wells on the lease where the leaking well is located until | ||||||
| 23 | all required actions have been taken and may be issued a notice | ||||||
| 24 | of violation and assessed a civil penalty in accordance with | ||||||
| 25 | this Act and administrative rule. | ||||||
| |||||||
| |||||||
| 1 | (225 ILCS 725/26) (from Ch. 96 1/2, par. 5456) | ||||||
| 2 | Sec. 26. (a) Any person who violates any provision of this | ||||||
| 3 | Act or any valid rule, regulation, permit or order of the | ||||||
| 4 | Department made hereunder, or who repeats or continues the | ||||||
| 5 | violation thereof, shall be subject to a civil penalty not to | ||||||
| 6 | exceed: | ||||||
| 7 | (1) $1,000 a day for each and every act of violation | ||||||
| 8 | lasting 90 days or less. | ||||||
| 9 | (2) $2,000 a day for any violation lasting more than | ||||||
| 10 | 90 days but less than 180 days. | ||||||
| 11 | (3) $4,000 a day for any violation lasting 180 days or | ||||||
| 12 | more. | ||||||
| 13 | Any civil penalties that are assessed in excess of $1,000 | ||||||
| 14 | per day shall be deposited into the Plugging and Restoration | ||||||
| 15 | Fund. | ||||||
| 16 | Civil penalties may not be assessed until notice has been | ||||||
| 17 | sent to the permittee. Such notice may be sent electronically | ||||||
| 18 | at the time the notice of violation is sent to the Springfield | ||||||
| 19 | office of the Department. | ||||||
| 20 | A permittee may notify the Department if an extraordinary | ||||||
| 21 | circumstance prevents abatement for which civil penalties are | ||||||
| 22 | sought to be assessed against the permittee. If the permittee | ||||||
| 23 | notifies the Department, the permittee shall then provide | ||||||
| 24 | evidence of the extraordinary circumstance to the Department | ||||||
| 25 | when such extraordinary circumstance has terminated. The | ||||||
| 26 | assessment of a civil penalty shall not begin until the | ||||||
| |||||||
| |||||||
| 1 | extraordinary circumstance terminates. An extraordinary | ||||||
| 2 | circumstance shall include, but not be limited to, roads being | ||||||
| 3 | posted, wet field conditions, or flooding that prevents the | ||||||
| 4 | movement of equipment for the abatement. | ||||||
| 5 | (b) Any person willfully wilfully aiding or abetting any | ||||||
| 6 | other person in the violation of any provision of this Act, or | ||||||
| 7 | any rule, regulation and order made hereunder, shall be | ||||||
| 8 | subject to the same penalties as are prescribed herein for the | ||||||
| 9 | violation by such other person. | ||||||
| 10 | (Source: P.A. 85-1334.)". | ||||||
