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1 | AN ACT concerning property.
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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 Drilling Operations Act is amended by | |||||||||||||||||||||
5 | changing Sections 4 and 6 as follows:
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6 | (765 ILCS 530/4) (from Ch. 96 1/2, par. 9654)
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7 | Sec. 4. Notice.
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8 | (a) Prior to commencement of the drilling of a well, the | |||||||||||||||||||||
9 | operator shall
give a copy of the Act with a written notice to | |||||||||||||||||||||
10 | the surface owner of the operator's intent to commence
drilling | |||||||||||||||||||||
11 | operations.
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12 | (b) The operator shall, for the purpose of giving notice as | |||||||||||||||||||||
13 | herein
required, secure from the assessor's office within 90 | |||||||||||||||||||||
14 | days prior to the
giving of the notice, a certification which | |||||||||||||||||||||
15 | shall identify the person in
whose name the lands on which | |||||||||||||||||||||
16 | drilling operations are to be commenced and who
is assessed at | |||||||||||||||||||||
17 | the time the certification is made. The written certification
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18 | made by the assessor of the surface owner shall be conclusive | |||||||||||||||||||||
19 | evidence of
the surface ownership and of the operator's | |||||||||||||||||||||
20 | compliance with the provisions of
this Act.
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21 | (c) The notice required to be given by the operator to the | |||||||||||||||||||||
22 | surface owner
shall identify the following:
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23 | (1) The location of the proposed entry on the
surface |
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1 | for drilling operations, and the date on or after which | ||||||
2 | drilling
operations shall be commenced.
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3 | (2) A photocopy of the drilling application to the | ||||||
4 | Department
of Natural Resources for
the well to be drilled.
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5 | (3) The name, address and telephone number of the | ||||||
6 | operator.
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7 | (4) An offer to discuss with the surface owner those | ||||||
8 | matters set forth
in Section 5 hereof prior to commencement | ||||||
9 | of drilling operations.
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10 | (5) If the surface owner elects to meet the operator, the | ||||||
11 | surface owner
shall request the operator to schedule a meeting | ||||||
12 | at a mutually agreed time
and place within the limitations set | ||||||
13 | forth herein. Failure of the surface
owner to contact the | ||||||
14 | operator at least 5 days prior to the proposed
commencement of | ||||||
15 | drilling operations shall be conclusively deemed a waiver
of | ||||||
16 | the right to meet by the surface owner.
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17 | (6) The meeting shall be scheduled between the hours of | ||||||
18 | 9:00 in the
morning
and the setting of the sun of the same day | ||||||
19 | and shall be at least 3 days prior
to commencement of drilling | ||||||
20 | operations. Unless agreed to otherwise, the
place shall be | ||||||
21 | located within the county in which drilling operations are
to | ||||||
22 | be commenced where the operator or his agent shall be available | ||||||
23 | to
discuss with the surface owner or his agent those matters | ||||||
24 | set forth in Section
5 hereof.
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25 | (7) The notice and a copy of the Act as herein required | ||||||
26 | shall be given to the surface owner by
either:
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1 | (A) certified mail addressed to the surface owner at | ||||||
2 | the address shown
in the certification obtained from the | ||||||
3 | assessor, which shall be postmarked
at least 10 days prior | ||||||
4 | to the commencement of drilling operations; or
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5 | (B) personal delivery to the surface owner at least 8 | ||||||
6 | days prior to the
commencement of drilling operations.
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7 | (C) Notice to the surface owner as defined in this Act | ||||||
8 | shall be deemed
conclusive notice to the record owners of | ||||||
9 | all interest in the surface.
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10 | (Source: P.A. 89-445, eff. 2-7-96; revised 10-19-05.)
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11 | (765 ILCS 530/6) (from Ch. 96 1/2, par. 9656)
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12 | Sec. 6. Compensation of surface owners for drilling and | ||||||
13 | producing
operations and duties after cessation of production.
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14 | (A) The surface owner shall be entitled to reasonable | ||||||
15 | compensation from
the operator for damages as follows: | ||||||
16 | (1) To
to growing crops, trees, shrubs, fences, roads,
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17 | structures, improvements , personal property, and livestock | ||||||
18 | thereon caused by the drilling of a new
well. The surface | ||||||
19 | owner shall also be entitled to reasonable compensation
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20 | from the operator for subsequent damages .
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21 | (2) To
to growing crops, trees, shrubs,
fences, roads, | ||||||
22 | structures, improvements , personal property, and livestock | ||||||
23 | thereon.
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24 | (3) For the loss of the value of a commercial crop | ||||||
25 | corresponding to lands taken out of production because of |
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1 | the use thereof by the operator for roads and production | ||||||
2 | equipment. Any recovery shall only be applicable if the | ||||||
3 | area adjacent to said roads and production equipment are | ||||||
4 | planted and harvested. The value of the crop shall be | ||||||
5 | calculated by: (i) determining the average per acre yield | ||||||
6 | for the crop on adjacent lands; (ii) determining the price | ||||||
7 | received for the sale of the crop on adjacent lands less | ||||||
8 | the cost of seed planting, chemicals, fertilizers and | ||||||
9 | harvesting; (iii) determining the acreage of the area | ||||||
10 | utilized for roads and production equipment; and (iv) | ||||||
11 | attributing the determined crop yield to the determined | ||||||
12 | acreage utilized and applying the determined price. The | ||||||
13 | initial determination of the value of the crop shall be | ||||||
14 | determined by the surface owner and submitted to the | ||||||
15 | operator. The surface owner and operator shall mutually | ||||||
16 | agree as to the value of the crop utilizing the above | ||||||
17 | referenced formula for the initial crop year and all
caused | ||||||
18 | by
subsequent crop years
production operations of the | ||||||
19 | operator thereon . The surface
owner shall also be entitled | ||||||
20 | to reasonable compensation
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21 | (4) For
for all negligent
acts of operator that cause | ||||||
22 | measurable damage to the productive capacity of
the soil. | ||||||
23 | In addition, | ||||||
24 | (A-5) The
the operator shall not utilize any more of the
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25 | surface estate than is reasonably necessary for the | ||||||
26 | exploration, production
and development of the mineral estate.
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1 | (B) The compensation required pursuant to paragraph (A) | ||||||
2 | above shall be
paid in any manner mutually agreed upon by the | ||||||
3 | operator and the surface
owner, but the failure to agree upon, | ||||||
4 | or make the compensation required,
shall not prevent the | ||||||
5 | operator from commencement of drilling operations;
provided, | ||||||
6 | however, that operator shall tender to the surface owner | ||||||
7 | payment by
check or draft in accordance with the provisions | ||||||
8 | herein no later than 90 days
after completion of the well. The | ||||||
9 | surface owner's remedy shall be an
action for compensation in | ||||||
10 | the circuit court in which the lands or the
greater part | ||||||
11 | thereof are located on which drilling operations were
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12 | conducted; provided, however, that if operator fails to tender | ||||||
13 | payment
within the 90-day period or if the tender is not | ||||||
14 | reasonable, surface owner
shall be entitled to reasonable | ||||||
15 | compensation as provided herein as well as
attorney's fees.
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16 | If operator relies on a third party appraiser or fair | ||||||
17 | market value, such
amount shall be conclusively deemed to be | ||||||
18 | reasonable, and there shall be no
award of attorney's fees.
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19 | (C)
In conjunction with the plugging and abandonment of any | ||||||
20 | well, the
operator shall restore the surface to a condition as | ||||||
21 | near as practicable to
the condition of the surface prior to | ||||||
22 | commencement of drilling operations;
provided, however, that | ||||||
23 | the surface owner and operator may waive this
requirement in | ||||||
24 | writing, subject to the approval of the Department of Natural
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25 | Resources that the waiver is in accordance with its
rules.
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26 | (D)
Where practicable and absent a written agreement to the |
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1 | contrary
with the surface owner, all flow lines and other | ||||||
2 | underground structures
must be buried to a depth not less than | ||||||
3 | 36 inches from the surface.
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4 | (Source: P.A. 89-445, eff. 2-7-96.)
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