Public Act 095-0493
SB1041 Enrolled LRB095 05940 AJO 26032 b

    AN ACT concerning civil law.
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
    Section 5. The Drilling Operations Act is amended by
changing Sections 4 and 6 as follows:
    (765 ILCS 530/4)  (from Ch. 96 1/2, par. 9654)
    Sec. 4. Notice.
    (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
    (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
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.
    (c) The notice required to be given by the operator to the
surface owner shall identify the following:
        (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.
        (2) A photocopy of the drilling application to the
    Department of Natural Resources for the well to be drilled.
        (3) The name, address and telephone number of the
        (4) An offer to discuss with the surface owner those
    matters set forth in Section 5 hereof prior to commencement
    of drilling operations.
    (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.
    (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.
    (7) The notice and a copy of the Act as herein required
shall be given to the surface owner by either:
        (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
        (B) personal delivery to the surface owner at least 8
    days prior to the commencement of drilling operations.
        (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.
(Source: P.A. 89-445, eff. 2-7-96; revised 10-19-05.)
    (765 ILCS 530/6)  (from Ch. 96 1/2, par. 9656)
    Sec. 6. Compensation of surface owners for drilling and
producing operations and duties after cessation of production.
    (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,
    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
    from the operator for subsequent damages.
        (2) To to growing crops, trees, shrubs, fences, roads,
    structures, improvements, personal property, and livestock
        (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
        (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
surface estate than is reasonably necessary for the
exploration, production and development of the mineral estate.
    (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
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.
    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.
    (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
Resources that the waiver is in accordance with its rules.
    (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.
(Source: P.A. 89-445, eff. 2-7-96.)

Effective Date: 1/1/2008