Full Text of SB1041 95th General Assembly
SB1041sam001 95TH GENERAL ASSEMBLY
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Sen. Gary Forby
Filed: 5/16/2007
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LRB095 05940 AJO 36428 a |
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| AMENDMENT TO SENATE BILL 1041
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| AMENDMENT NO. ______. Amend Senate Bill 1041 by replacing | 3 |
| everything after the enacting clause with the following:
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| "Section 5. The Drilling Operations Act is amended by | 5 |
| 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 | 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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| (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 |
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| the time the certification is made. The written certification
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| made by the assessor of the surface owner shall be conclusive | 3 |
| evidence of
the surface ownership and of the operator's | 4 |
| compliance with the provisions of
this Act.
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| (c) The notice required to be given by the operator to the | 6 |
| surface owner
shall identify the following:
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| (1) The location of the proposed entry on the
surface | 8 |
| for drilling operations, and the date on or after which | 9 |
| drilling
operations shall be commenced.
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| (2) A photocopy of the drilling application to the | 11 |
| Department
of Natural Resources for
the well to be drilled.
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| (3) The name, address and telephone number of the | 13 |
| operator.
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| (4) An offer to discuss with the surface owner those | 15 |
| matters set forth
in Section 5 hereof prior to commencement | 16 |
| of drilling operations.
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| (5) If the surface owner elects to meet the operator, the | 18 |
| surface owner
shall request the operator to schedule a meeting | 19 |
| at a mutually agreed time
and place within the limitations set | 20 |
| forth herein. Failure of the surface
owner to contact the | 21 |
| operator at least 5 days prior to the proposed
commencement of | 22 |
| drilling operations shall be conclusively deemed a waiver
of | 23 |
| the right to meet by the surface owner.
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| (6) The meeting shall be scheduled between the hours of | 25 |
| 9:00 in the
morning
and the setting of the sun of the same day | 26 |
| and shall be at least 3 days prior
to commencement of drilling |
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| operations. Unless agreed to otherwise, the
place shall be | 2 |
| located within the county in which drilling operations are
to | 3 |
| be commenced where the operator or his agent shall be available | 4 |
| to
discuss with the surface owner or his agent those matters | 5 |
| set forth in Section
5 hereof.
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| (7) The notice and a copy of the Act as herein required | 7 |
| shall be given to the surface owner by
either:
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| (A) certified mail addressed to the surface owner at | 9 |
| the address shown
in the certification obtained from the | 10 |
| assessor, which shall be postmarked
at least 10 days prior | 11 |
| to the commencement of drilling operations; or
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| (B) personal delivery to the surface owner at least 8 | 13 |
| days prior to the
commencement of drilling operations.
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| (C) Notice to the surface owner as defined in this Act | 15 |
| shall be deemed
conclusive notice to the record owners of | 16 |
| 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 | 20 |
| producing
operations and duties after cessation of production.
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| (A) The surface owner shall be entitled to reasonable | 22 |
| compensation from
the operator for damages as follows: | 23 |
| (1) To
to growing crops, trees, shrubs, fences, roads,
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| structures, improvements , personal property, and livestock | 25 |
| thereon caused by the drilling of a new
well. The surface |
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| 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, | 4 |
| structures, improvements , personal property, and livestock | 5 |
| thereon .
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| (3) For the loss of the value of a commercial crop | 7 |
| corresponding to lands taken out of production because of | 8 |
| the use thereof by the operator for roads and production | 9 |
| equipment. Any recovery shall only be applicable if the | 10 |
| area adjacent to said roads and production equipment are | 11 |
| planted and harvested. The value of the crop shall be | 12 |
| calculated by: (i) determining the average per acre yield | 13 |
| for the crop on adjacent lands; (ii) determining the price | 14 |
| received for the sale of the crop on adjacent lands less | 15 |
| the cost of seed planting, chemicals, fertilizers and | 16 |
| harvesting; (iii) determining the acreage of the area | 17 |
| utilized for roads and production equipment; and (iv) | 18 |
| attributing the determined crop yield to the determined | 19 |
| acreage utilized and applying the determined price. The | 20 |
| initial determination of the value of the crop shall be | 21 |
| determined by the surface owner and submitted to the | 22 |
| operator. The surface owner and operator shall mutually | 23 |
| agree as to the value of the crop utilizing the above | 24 |
| referenced formula for the initial crop year and all
caused | 25 |
| by
subsequent crop years
production operations of the | 26 |
| operator thereon . The surface
owner shall also be entitled |
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| to reasonable compensation
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| (4) For
for all negligent
acts of operator that cause | 3 |
| measurable damage to the productive capacity of
the soil. | 4 |
| In addition, | 5 |
| (A-5) The
the operator shall not utilize any more of the
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| surface estate than is reasonably necessary for the | 7 |
| exploration, production
and development of the mineral estate.
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| (B) The compensation required pursuant to paragraph (A) | 9 |
| above shall be
paid in any manner mutually agreed upon by the | 10 |
| operator and the surface
owner, but the failure to agree upon, | 11 |
| or make the compensation required,
shall not prevent the | 12 |
| operator from commencement of drilling operations;
provided, | 13 |
| however, that operator shall tender to the surface owner | 14 |
| payment by
check or draft in accordance with the provisions | 15 |
| herein no later than 90 days
after completion of the well. The | 16 |
| surface owner's remedy shall be an
action for compensation in | 17 |
| the circuit court in which the lands or the
greater part | 18 |
| thereof are located on which drilling operations were
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| conducted; provided, however, that if operator fails to tender | 20 |
| payment
within the 90-day period or if the tender is not | 21 |
| reasonable, surface owner
shall be entitled to reasonable | 22 |
| compensation as provided herein as well as
attorney's fees.
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| If operator relies on a third party appraiser or fair | 24 |
| market value, such
amount shall be conclusively deemed to be | 25 |
| 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 |
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| well, the
operator shall restore the surface to a condition as | 2 |
| near as practicable to
the condition of the surface prior to | 3 |
| commencement of drilling operations;
provided, however, that | 4 |
| the surface owner and operator may waive this
requirement in | 5 |
| 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 | 8 |
| contrary
with the surface owner, all flow lines and other | 9 |
| underground structures
must be buried to a depth not less than | 10 |
| 36 inches from the surface.
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| (Source: P.A. 89-445, eff. 2-7-96.)".
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