HB2759 98TH GENERAL ASSEMBLY

LRB098 07473 JDS 37544 b

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.

FISCAL NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning government.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Oil and Gas Wells on Public Lands Act is amended by adding Section 23.5 as follows:

(5 ILCS 615/23.5 new)

Sec. 23.5. Oil and gas leases; highway land.

(a) The General Assembly finds that:

(1) the Illinois Department of Transportation exercises jurisdiction over lands held, or otherwise used, for highway purposes, hereinafter "highway lands", but that title to those lands was not authorized or secured for the purpose of developing or enjoying oil and gas rights;

(2) the interest of the State of Illinois with respect to those lands is in the present and future use and protection of surface rights of way for highways; and

(3) the lawful permitting of private lands for the exploration and development of oil and gas production is better served by the leasing of highway lands by the Illinois Department of Transportation in cooperation with owners of lands that are contiguous to highway lands.

(b) Therefore, it is the policy of the State of Illinois, and the purpose of this Section, to encourage the development of oil and gas production within the State and to reduce constraints on the development of those natural resources by private landowners in compliance with law.

(c) Notwithstanding any other provision of this Act or any other law to the contrary, 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 highway lands, the highway lands shall be deemed leased for the purpose of enabling the permittee to obtain the drilling permit, without any consent or action by the Illinois Department of Transportation, if the following conditions are met:

(1) the acreage under the jurisdiction of the Illinois Department of Transportation does not exceed 50% of the total acreage comprising the proposed drilling unit;

(2) the proposed drilling site is at least 200 feet from any improved road surface; and

(3) the proposed drilling site is not located upon highway land.

(d) Neither the State of Illinois nor the Illinois Department of Transportation shall receive any compensation or royalty interest in the production from the subject well in exchange for highway lands deemed leased pursuant to subsection (c).