2023 Illinois Compiled Statutes › Chapter 765 - PROPERTY › 765 ILCS 530/ - Drilling Operations Act.

(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,
 gas, and coalbed methane,
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. 95-830, eff. 8-14-08.)
(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,  gas, and coalbed methane from the ownership of the surface, or
(B) where the surface owner owns an interest in the     oil,  gas, and coalbed methane, 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. 95-830, eff. 8-14-08.)
(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 a copy of the Act with a 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 surface     for drilling operations, and the date on or after which drilling operations shall be commenced.
(2) A photocopy of the drilling application to the     Department of Natural Resources for the well to be drilled.
(3) The name, address and telephone number of the     operator.
(4) An offer to discuss with the surface owner those     matters set forth in Section 5 hereof prior to commencement of drilling operations.
If the surface owner elects to meet the operator, the surface owner
shall request the operator to schedule a meeting at a mutually agreed time
and place within the limitations set forth herein.  Failure of the surface
owner to contact the operator at least 5 days prior to the proposed
commencement of drilling operations shall be conclusively deemed a waiver
of the right to meet by the surface owner.
The meeting shall be scheduled between the hours of 9:00 in the
morning
and the setting of the sun of the same day and shall be at least 3 days prior
to commencement of drilling operations.  Unless agreed to otherwise, the
place shall be located within the county in which drilling operations are
to be commenced where the operator or his agent shall be available to
discuss with the surface owner or his agent those matters set forth in Section
5 hereof.
The notice and a copy of the Act as herein required shall be given to the surface owner by
either:
(A) certified mail addressed to the surface owner at     the address shown in the certification obtained from the assessor, which shall be postmarked at least 15 days prior to the commencement of drilling operations; or
(B) personal delivery to the surface owner at least     15 days prior to the commencement of drilling operations.
Notice to the surface owner as defined in this Act shall be deemed
conclusive notice to the record owners of all interest in the surface.
(Source: P.A. 95-331, eff. 8-21-07; 95-493, eff. 1-1-08; 95-830, eff. 8-14-08; 96-328, eff. 8-11-09.)
(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 as follows:
(1) To growing crops, trees, shrubs, fences, roads,     structures, improvements, personal property, 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.
(2) To growing crops, trees, shrubs, fences, roads,     structures, improvements, personal property, and livestock thereon.
(3) For the loss of the value of a commercial crop     corresponding to lands taken out of production because of the use thereof by the operator for roads and production equipment.  Any recovery shall only be  applicable if the area adjacent to said roads and production equipment are planted and harvested.  The value of the crop shall be calculated by: (i) determining the average per acre yield for the crop on adjacent lands; (ii) determining the price received for the sale of the crop on adjacent lands less the cost of seed planting, chemicals, fertilizers and harvesting; (iii) determining the acreage of the area utilized for roads and production equipment; and (iv) attributing the determined crop yield to the determined acreage utilized and applying the determined price.  The initial determination of the value of the crop shall be determined by the surface owner and submitted to the operator.  The surface owner and operator shall mutually agree as to the value of the crop utilizing the above referenced formula for the initial crop year and all  subsequent crop years.
(4) For all negligent acts of operator that cause     measurable damage to the productive capacity of the soil.
(A-5) 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. 95-493, eff. 1-1-08.)
(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.)