98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
HB2759
 
Introduced 2/21/2013, by Rep. Bill Mitchell
 
SYNOPSIS AS INTRODUCED:
 

 
5 ILCS 615/23.5 new

     Amends the Oil and Gas Wells on Public Lands Act. Provides that, upon application to the Illinois Department of Natural Resources for a permit to drill or otherwise operate an oil or gas well with respect to a drilling unit that includes certain highway lands, those lands shall be deemed leased for the purpose of enabling the permittee to obtain a drilling permit, without action by the Illinois Department of Transportation, if certain conditions are met. Prohibits the State of Illinois from receiving any compensation or royalty interest in the production from the subject well in exchange for the highway lands deemed leased.
  


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FISCAL NOTE ACT MAY APPLY
 
 
A BILL FOR
 

  
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1    AN ACT concerning government.
  
 
2    Be it enacted by the People of the State of Illinois,
 
3represented in the General Assembly:
  


 
4    Section 5. The Oil and Gas Wells on Public Lands Act is 
5amended  by adding Section 23.5 as follows:
 
6    (5 ILCS 615/23.5 new)
7    Sec. 23.5. Oil and gas leases; highway land.
8    (a) The General Assembly finds that:
9        (1) the Illinois Department of Transportation 
10    exercises jurisdiction over lands held, or otherwise used, 
11    for highway purposes, hereinafter "highway lands", but 
12    that title to those lands was not authorized or secured for 
13    the purpose of developing or enjoying oil and gas rights;
14        (2) the interest of the State of Illinois with respect 
15    to those lands is in the present and future use and 
16    protection of surface rights of way for highways; and
17        (3) the lawful permitting of private lands for the 
18    exploration and development of oil and gas production is 
19    better served by the leasing of highway lands by the 
20    Illinois Department of Transportation in cooperation with 
21    owners of lands that are contiguous to highway lands. 
22    (b) Therefore, it is the policy of the State of Illinois, 
23and the purpose of this Section, to encourage the development 
 
 
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1of oil and gas production within the State and to reduce 
2constraints on the development of those natural resources by 
3private landowners in compliance with law. 
4    (c) Notwithstanding any other provision of this Act or any 
5other law to the contrary, upon application to the Illinois 
6Department of Natural Resources for a permit to drill or 
7otherwise operate an oil or gas well with respect to a drilling 
8unit that includes highway lands, the highway lands shall be 
9deemed leased for the purpose of enabling the permittee to 
10obtain the drilling permit, without any consent or action by 
11the Illinois Department of Transportation, if the following 
12conditions are met: 
13        (1) the acreage under the jurisdiction of the Illinois 
14    Department of Transportation does not exceed 50% of the 
15    total acreage comprising the proposed drilling unit; 
16        (2) the proposed drilling site is at least 200 feet 
17    from any improved road surface; and 
18        (3) the proposed drilling site is not located upon 
19    highway land. 
20    (d) Neither the State of Illinois nor the Illinois 
21Department of Transportation shall receive any compensation or 
22royalty interest in the production from the subject well in 
23exchange for highway lands deemed leased pursuant to subsection 
24(c).