| ||||
| Public Act 099-0138 | ||||
| ||||
| ||||
AN ACT concerning regulation.
| ||||
Be it enacted by the People of the State of Illinois,
| ||||
represented in the General Assembly:
| ||||
Section 5. The Illinois Oil and Gas Act is amended by | ||||
adding Sections 6.2 and 9.1 as follows: | ||||
(225 ILCS 725/6.2 new) | ||||
Sec. 6.2. Oil and gas leases; termination due to | ||||
non-development or non-production. The Department shall have | ||||
the authority to adopt rules and hold hearings to determine if | ||||
oil and gas leases submitted with an application for a permit | ||||
or transfer of a permit for a well are operative on the basis | ||||
that prior oil and gas leases covering the same lands have | ||||
terminated due to non-development or non-production. | ||||
Department determinations under this Section shall be based | ||||
upon affidavits of non-development or non-production from | ||||
knowledgeable individuals familiar with the history of | ||||
development and production of oil or gas as to such lands, | ||||
together with other evidence, which create a rebuttable | ||||
presumption that the prior oil and gas leases have terminated | ||||
and are of no further force and effect and that the submitted | ||||
oil and gas leases are operative and effective. To create a | ||||
rebuttable presumption, such affidavits, together with other | ||||
evidence provided to or available from the Department, shall | ||||
reasonably indicate that there has been no development or | ||
production of oil and gas on the lands described in the prior | ||
leases for at least 24 consecutive months subsequent to the | ||
expiration of the primary term or any extension of the primary | ||
term as set forth in the leases. A court order or judgment | ||
declaring the prior leases terminated is not required for | ||
determinations under this Section, except in extraordinary | ||
circumstances where such determinations cannot reasonably be | ||
concluded from the affidavits or evidence submitted to or | ||
available from the Department. Upon the Department's | ||
determination of a rebuttable presumption under this Section, | ||
the Department shall provide the current permittee with notice | ||
and a 30-day opportunity to request a hearing to rebut the | ||
presumption before a final determination on a lease is made. | ||
Any determination made by the Department under this Section | ||
shall not diminish the rights or obligations of any current | ||
permittee of a well that are otherwise provided by statute or | ||
regulation of the Department. Any request for a determination | ||
under this Section shall require the payment of a nonrefundable | ||
fee of $1,000 by the applicant. All determinations on leases by | ||
the Department under this Section shall be made no later than | ||
90 days after the Department's receipt of a valid request for | ||
such determination. Determinations that prior oil and gas | ||
leases have terminated due to non-development or | ||
non-production shall require the current permittee to properly | ||
plug all non-plugged and non-transferred wells within the lease | ||
boundaries of the prior leases. If the current permittee fails | ||
to properly plug all non-plugged and non-transferred wells | ||
within 30 days after the issuance of the determination, the | ||
wells shall be deemed abandoned and included in the | ||
Department's Oil and Gas Well Site Plugging and Restoration | ||
Program.
Department determinations under this Section shall | ||
not have res judicata or collateral estoppel effect in any | ||
judicial proceedings. | ||
(225 ILCS 725/9.1 new) | ||
Sec. 9.1. Notice for hearings or other proceedings. | ||
(a) All permittees under this Act shall provide the | ||
Department with a current address within 90 days after the | ||
effective date of this amendatory Act of the 99th General | ||
Assembly for the Department's use in providing notice of any | ||
hearings or other proceedings under this Act. Permittees must | ||
inform the Department of any address changes within 30 days | ||
after the effective date of the address change. Permittees | ||
shall provide current address information and inform the | ||
Department of any address changes on a form prescribed by the | ||
Department. | ||
(b) Written notice of a hearing or proceeding required to | ||
be provided to a permittee under this Act shall be given either | ||
personally or by certified mail with return receipt requested | ||
sent to the address provided to the Department as required by | ||
subsection (a) of this Section. Permittees shall sign certified | ||
mail return receipts for all mail received from the Department. | ||
(c) If notice sent by certified mail is returned unsigned | ||
or undelivered and, upon due inquiry, the permittee cannot be | ||
found for personal delivery, the Department shall provide | ||
written notice of a hearing or other proceeding by publication | ||
of the notice in a newspaper published in the county where the | ||
well or wells at issue are located. If there is no newspaper | ||
published in that county, then the publication shall be in a | ||
newspaper published in an adjoining county in this State having | ||
a circulation in the county where the well or wells at issue | ||
are located. The notice shall be published once. The Department | ||
shall, within 10 days after the publication of the newspaper | ||
notice, send a copy of the notice to the address provided to | ||
the Department as required by subsection (a) of this Section. | ||
The certificate of an authorized representative of the | ||
Department that newspaper notice was published and that a copy | ||
of the newspaper notice has been sent to the permittee pursuant | ||
to this subsection is evidence that the Department has properly | ||
provided notice to the permittee for the hearing or other | ||
proceeding. | ||
(d) Any notice required to be provided to a permittee under | ||
this Act shall include the identification of the well or wells | ||
at issue, the date, time, place, and nature of the hearing or | ||
other proceeding, and the name and contact information of the | ||
Department where additional information can be obtained.
| ||