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| Public Act 095-0493 |
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AN ACT concerning civil law.
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Be it enacted by the People of the State of Illinois, | ||||
represented in the General Assembly:
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Section 5. The Drilling Operations Act is amended by | ||||
changing Sections 4 and 6 as follows:
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(765 ILCS 530/4) (from Ch. 96 1/2, par. 9654)
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Sec. 4. Notice.
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(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.
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(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
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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.
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(c) The notice required to be given by the operator to the | ||||
surface owner
shall identify the following:
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(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.
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(2) A photocopy of the drilling application to the | ||
Department
of Natural Resources for
the well to be drilled.
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(3) The name, address and telephone number of the | ||
operator.
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(4) An offer to discuss with the surface owner those | ||
matters set forth
in Section 5 hereof prior to commencement | ||
of drilling operations.
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(5) 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.
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(6) 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.
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(7) The notice and a copy of the Act as herein required | ||
shall be given to the surface owner by
either:
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(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 10 days prior | ||
to the commencement of drilling operations; or
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(B) personal delivery to the surface owner at least 8 | ||
days prior to the
commencement of drilling operations.
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(C) 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.
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(Source: P.A. 89-445, eff. 2-7-96; revised 10-19-05.)
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(765 ILCS 530/6) (from Ch. 96 1/2, par. 9656)
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Sec. 6. Compensation of surface owners for drilling and | ||
producing
operations and duties after cessation of production.
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(A) The surface owner shall be entitled to reasonable | ||
compensation from
the operator for damages as follows: | ||
(1) To
to growing crops, trees, shrubs, fences, roads,
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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
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from the operator for subsequent damages.
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(2) To
to growing crops, trees, shrubs,
fences, roads, | ||
structures, improvements, personal property, and livestock | ||
thereon.
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(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
caused | ||
by
subsequent crop years
production operations of the | ||
operator thereon. The surface
owner shall also be entitled | ||
to reasonable compensation
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(4) For
for all negligent
acts of operator that cause | ||
measurable damage to the productive capacity of
the soil. | ||
In addition, | ||
(A-5) The
the operator shall not utilize any more of the
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surface estate than is reasonably necessary for the | ||
exploration, production
and development of the mineral estate.
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(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
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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.
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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.
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(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
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Resources that the waiver is in accordance with its
rules.
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(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.
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(Source: P.A. 89-445, eff. 2-7-96.)
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