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1 | AN ACT concerning regulation.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Illinois Oil and Gas Act is amended by | ||||||||||||||||||||||||
5 | changing Section 6 as follows:
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6 | (225 ILCS 725/6) (from Ch. 96 1/2, par. 5409)
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7 | Sec. 6.
The Department shall have the authority to conduct | ||||||||||||||||||||||||
8 | hearings and
to make such reasonable rules as may be necessary | ||||||||||||||||||||||||
9 | from time to time in the
proper administration and enforcement | ||||||||||||||||||||||||
10 | of this Act, including the adoption
of rules and the holding of | ||||||||||||||||||||||||
11 | hearings for the following purposes:
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12 | (1) To require the drilling, casing and plugging of | ||||||||||||||||||||||||
13 | wells to be done in
such a manner as to prevent the | ||||||||||||||||||||||||
14 | migration of oil or gas from one stratum to
another; to | ||||||||||||||||||||||||
15 | prevent the intrusion of water into oil, gas or coal | ||||||||||||||||||||||||
16 | strata;
to prevent the pollution of fresh water supplies by | ||||||||||||||||||||||||
17 | oil, gas or salt
water.
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18 | (2) To require the person desiring or proposing to | ||||||||||||||||||||||||
19 | drill, deepen or
convert any well for the exploration or | ||||||||||||||||||||||||
20 | production of
oil or gas, for injection or water supply in | ||||||||||||||||||||||||
21 | connection with
enhanced recovery projects, for the | ||||||||||||||||||||||||
22 | disposal of salt water, brine, or other
oil or gas field | ||||||||||||||||||||||||
23 | wastes, or for input, withdrawal, or observation in
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1 | connection with the storage of natural gas or other liquid | ||||||
2 | or gaseous
hydrocarbons before commencing the drilling, | ||||||
3 | deepening or
conversion of any such well, to make | ||||||
4 | application to the Department upon
such form as the | ||||||
5 | Department may prescribe and to comply with the provisions
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6 | of this Section. The drilling, deepening or conversion of | ||||||
7 | any well is
hereby prohibited until such application is | ||||||
8 | made and the applicant is
issued a permit therefor as | ||||||
9 | provided by this Act. Each application for a
well permit | ||||||
10 | shall include the following: (A) The exact location of the
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11 | well, (B) the name and address of the manager, operator, | ||||||
12 | contractor,
driller, or any other person responsible for | ||||||
13 | the conduct of drilling
operations, (C) the proposed depth | ||||||
14 | of the well, (D) lease ownership
information, and (E) such | ||||||
15 | other relevant information as the Department may
deem | ||||||
16 | necessary or convenient to effectuate the purposes of this | ||||||
17 | Act.
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18 | Additionally, each applicant who has not been issued a | ||||||
19 | permit that is
of record on the effective date of this | ||||||
20 | amendatory Act of 1991, or who has
not thereafter made | ||||||
21 | payments of assessments under Section 19.7 of this Act
for | ||||||
22 | at least 2 consecutive years preceding the application, | ||||||
23 | shall execute,
as principal, and file with the Department a | ||||||
24 | bond, executed by a surety
authorized to transact business | ||||||
25 | in this State, in an amount estimated to
cover the cost of | ||||||
26 | plugging the well and restoring the well site, but not to
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1 | exceed $5000, as determined by the Department for each | ||||||
2 | well, or a blanket
bond in an amount not to exceed $100,000 | ||||||
3 | for all wells, before drilling,
deepening, converting, or | ||||||
4 | operating any well for which a permit is required
that has | ||||||
5 | not previously been plugged and abandoned in accordance | ||||||
6 | with the
Act. The Department shall release the bond if the | ||||||
7 | well, or all wells in the
case of a blanket bond, is not | ||||||
8 | completed but is plugged and the well site
restored in | ||||||
9 | accordance with the Department's rules or is completed in
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10 | accordance with the Department's rules and the permittee | ||||||
11 | pays assessments
to the Department in accordance with | ||||||
12 | Section 19.7 of this Act for 2
consecutive years.
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13 | In lieu of a surety bond, the applicant may provide | ||||||
14 | cash,
certificates of deposit, or irrevocable letters of | ||||||
15 | credit under such terms
and conditions as the Department | ||||||
16 | may provide by rule.
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17 | The sureties on all bonds in effect on the effective | ||||||
18 | date of this
amendatory Act of 1991 shall remain liable as | ||||||
19 | sureties in accordance with
their undertakings until | ||||||
20 | released by the Department from further liability
under the | ||||||
21 | Act. The principal on each bond in effect on the effective | ||||||
22 | date
of this amendatory Act of 1991 shall be released from | ||||||
23 | the obligation of
maintaining the bond if either the well | ||||||
24 | covered by a surety bond has been
plugged and the well site | ||||||
25 | restored in accordance with the Department's
rules or the | ||||||
26 | principal of the surety has paid the initial assessment in
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1 | accordance with Section 19.7 and no well or well site | ||||||
2 | covered by the surety
bond is in violation of the Act.
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3 | No permit shall be issued to a corporation incorporated | ||||||
4 | outside of
Illinois until the corporation has been | ||||||
5 | authorized to do business in Illinois.
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6 | No permit shall be issued to an individual, | ||||||
7 | partnership, or other
unincorporated entity that is not a | ||||||
8 | resident of Illinois until that individual,
partnership, | ||||||
9 | or other unincorporated entity has irrevocably consented | ||||||
10 | to be
sued in Illinois.
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11 | (3) To require the person assigning, transferring, or | ||||||
12 | selling any well
for which a permit is required under this | ||||||
13 | Act to notify the Department of
the change of ownership. | ||||||
14 | The notification shall be on a form prescribed by
the | ||||||
15 | Department, shall be executed by the current permittee and | ||||||
16 | by the new
permittee, or their authorized representatives, | ||||||
17 | and shall be filed with the
Department within 30 days after | ||||||
18 | the effective date of the assignment,
transfer or sale. | ||||||
19 | Within the 30 day notification period and prior to
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20 | operating the well, the new permittee shall pay the | ||||||
21 | required well transfer
fee and, where applicable, file with | ||||||
22 | the Department the bond required under
subsection (2) of | ||||||
23 | this Section.
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24 | (4) To require the filing with the State Geological | ||||||
25 | Survey
of all geophysical logs, a well drilling
report and | ||||||
26 | drill cuttings or cores, if cores are required,
within 90 |
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1 | days after drilling ceases; and to file a completion report
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2 | with the Department within 30 days after the date of first | ||||||
3 | production
following initial drilling or any reworking, or | ||||||
4 | after the plugging of the
well, if a dry hole. A copy of | ||||||
5 | each completion report submitted to the
Department shall be | ||||||
6 | delivered to the State Geological Survey. The
Department | ||||||
7 | and the State Geological Survey shall keep the reports
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8 | confidential, if requested in writing by the permittee, for | ||||||
9 | 2 years after
the date the permit is issued by the | ||||||
10 | Department. This confidentiality
requirement shall not | ||||||
11 | prohibit the use of the report for research purposes,
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12 | provided the State Geological Survey does not publish | ||||||
13 | specific data or
identify the well to which the completion | ||||||
14 | report pertains.
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15 | (5) To prevent "blowouts", "caving" and "seepage" in | ||||||
16 | the same sense that
conditions indicated by such terms are | ||||||
17 | generally understood in the oil and
gas business.
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18 | (6) To prevent fires.
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19 | (7) To ascertain and identify the ownership of all oil | ||||||
20 | and gas wells,
producing leases, refineries, tanks, | ||||||
21 | plants, structures, and all storage
and transportation | ||||||
22 | equipment and facilities.
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23 | (8) To regulate the use of any enhanced recovery method | ||||||
24 | in oil pools
and oil fields.
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25 | (9) To regulate or prohibit the use of vacuum.
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26 | (10) To regulate the spacing of wells, the
issuance of |
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1 | permits, and the establishment of drilling units.
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2 | (11) To regulate directional drilling of oil or gas | ||||||
3 | wells.
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4 | (12) To regulate the plugging of wells.
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5 | (13) To require that wells for which no logs or
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6 | unsatisfactory logs are supplied shall be completely | ||||||
7 | plugged with cement
from bottom to top.
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8 | (14) To require a description in such form as is
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9 | determined by the Department of the method of well plugging | ||||||
10 | for each
well, indicating the character of material used | ||||||
11 | and the positions and
dimensions of each plug.
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12 | (15) To prohibit waste, as defined in this Act.
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13 | (16) To require the keeping of such records, the | ||||||
14 | furnishing of such
relevant information and the | ||||||
15 | performance of such tests as the Department
may deem | ||||||
16 | necessary to carry into effect the purposes of this Act.
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17 | (17) To regulate the disposal of salt or | ||||||
18 | sulphur-bearing water and any
oil field waste produced in | ||||||
19 | the operation of any oil or gas well.
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20 | (18) To prescribe rules, conduct inspections and | ||||||
21 | require compliance with
health and safety standards for the | ||||||
22 | protection of persons working
underground in connection | ||||||
23 | with any oil and gas operations. For the
purposes of this | ||||||
24 | paragraph, oil and gas operations include drilling or
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25 | excavation, production operations, plugging or filling in | ||||||
26 | and sealing, or
any other work requiring the presence of |
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1 | workers in shafts or excavations
beneath the surface of the | ||||||
2 | earth. Rules promulgated by the Department may
include | ||||||
3 | minimum qualifications of persons performing tasks | ||||||
4 | affecting the
health and safety of workers underground, | ||||||
5 | minimum standards for the
operation and maintenance of | ||||||
6 | equipment, and safety procedures and
precautions, and | ||||||
7 | shall conform, as nearly as practicable, to corresponding
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8 | qualifications, standards and procedures prescribed under | ||||||
9 | The Coal Mining Act.
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10 | (19) To deposit the amount of any forfeited surety bond | ||||||
11 | or other
security in the Plugging and Restoration Fund, a | ||||||
12 | special fund in the State
treasury which is hereby created; | ||||||
13 | to deposit into the Fund any amounts
collected, reimbursed | ||||||
14 | or recovered by the Department under Sections 19.5,
19.6 | ||||||
15 | and 19.7 of this Act; to accept, receive, and
deposit into | ||||||
16 | the Fund any grants, gifts or other funds which may be made
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17 | available from public or private sources and all earnings | ||||||
18 | received from
investment of monies in the Fund; and to make | ||||||
19 | expenditures from the Fund
for the purposes of plugging, | ||||||
20 | replugging or repairing any well, and
restoring the site of | ||||||
21 | any well, determined by the Department to be
abandoned or | ||||||
22 | ordered by the Department to be plugged, replugged, | ||||||
23 | repaired
or restored under Sections 8a, 19 or 19.1 of this | ||||||
24 | Act, including
expenses in administering the Fund.
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25 | (20) To determine if oil and gas leases submitted with | ||||||
26 | an application for a permit or transfer of a permit for a |
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1 | well are operative on the basis that prior oil and gas | ||||||
2 | leases covering the same lands have terminated due to | ||||||
3 | non-development or non-production. Department | ||||||
4 | determinations under this paragraph may be based upon | ||||||
5 | affidavits of non-development or non-production from | ||||||
6 | knowledgeable individuals familiar with the history of | ||||||
7 | development and production of oil or gas as to such lands, | ||||||
8 | together with other evidence, which create a rebuttable | ||||||
9 | presumption that the prior oil and gas leases have | ||||||
10 | terminated and are of no further force and effect and that | ||||||
11 | the submitted oil and gas leases are operative and | ||||||
12 | effective. To create a rebuttable presumption, such | ||||||
13 | affidavits, together with other evidence provided to or | ||||||
14 | available from the Department, shall reasonably indicate | ||||||
15 | that there has been no development, operations, or | ||||||
16 | production of oil and gas on the lands described in the | ||||||
17 | prior leases for at least 24 consecutive months subsequent | ||||||
18 | to the expiration of the primary term or any extension of | ||||||
19 | the primary term as set forth in the leases, or the period | ||||||
20 | of time of no development or production after expiration of | ||||||
21 | the primary term as provided in the leases. A court order | ||||||
22 | or judgment declaring the prior leases terminated is not | ||||||
23 | required for determinations under this paragraph, except | ||||||
24 | in extraordinary circumstances where such determinations | ||||||
25 | cannot reasonably be concluded from the affidavits or | ||||||
26 | evidence submitted to or available from the Department. |
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1 | Upon the Department's determination of a rebuttable | ||||||
2 | presumption under this paragraph, the Department shall | ||||||
3 | provide the current permittee with notice and a 30-day | ||||||
4 | opportunity to request a hearing to rebut the presumption | ||||||
5 | before a final determination on a lease is made. Upon the | ||||||
6 | Department's determination of a rebuttable presumption | ||||||
7 | under this paragraph, if the applicant is not requesting a | ||||||
8 | transfer of any existing permit as to a well located on the | ||||||
9 | lands, but is requesting a new permit, the permit shall be | ||||||
10 | issued to the applicant. Any determination made by the | ||||||
11 | Department under this paragraph shall not diminish the | ||||||
12 | rights or obligations of any current permittee of a well | ||||||
13 | that are otherwise provided by statute or regulation of the | ||||||
14 | Department. Any request for a determination under this | ||||||
15 | paragraph shall require the payment of a nonrefundable fee | ||||||
16 | of $1,000 by the applicant. All determinations on leases by | ||||||
17 | the Department under this paragraph shall be made no later | ||||||
18 | than 90 days after the Department's receipt of a valid | ||||||
19 | request for such determination. | ||||||
20 | For the purposes of this Act, the State Geological Survey | ||||||
21 | shall
co-operate with the Department in making available its | ||||||
22 | scientific and
technical information on the oil and gas | ||||||
23 | resources of the State, and the
Department shall in turn | ||||||
24 | furnish a copy to the State Geological Survey
of all drilling | ||||||
25 | permits as issued, and such other drilling and operating
data | ||||||
26 | received or secured by the Department which are pertinent to
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1 | scientific research on the State's mineral resources.
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2 | (Source: P.A. 86-205; 86-364; 86-1177; 87-744.)
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3 | Section 99. Effective date. This Act takes effect upon | |||||||||||||||||||||||||
4 | becoming law.
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