Illinois Compiled Statutes
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225 ILCS 725/1
(225 ILCS 725/1)
(from Ch. 96 1/2, par. 5401)
Unless the context otherwise requires, the words defined in this
Section have the following meanings as used in this Act.
"Person" means any natural person, corporation, association,
partnership, governmental agency or other legal entity, receiver, trustee,
guardian, executor, administrator, fiduciary or representative of any kind.
"Oil" means natural crude oil or petroleum and other hydrocarbons,
regardless of gravity, which are produced at the well in liquid form by
ordinary production methods or by the use of an oil and gas separator and
which are not the result of condensation of gas after it leaves the
"Gas" means all natural gas, including casinghead gas, and all other
natural hydrocarbons not defined above as oil.
"Pool" means a natural, underground reservoir containing in whole or in
part, a natural accumulation of oil or gas, or both. Each productive zone
or stratum of a general structure, which is completely separated from any
other zone or stratum in the structure, is deemed a separate "pool" as used
"Field" means the same general surface area which is underlaid or
appears to be underlaid by one or more pools.
"Permit" means the Department's written authorization allowing a well
to be drilled, deepened, converted, or operated by an owner.
"Permittee" means the owner holding or required to hold the
who is also responsible for paying assessments in accordance with Section
19.7 of this Act and, where applicable, executing and filing the bond
associated with the well as principal and who is responsible for compliance
with all statutory and regulatory requirements pertaining to the well.
When the right and responsibility for operating a well is vested in a
receiver or trustee appointed by a court of competent jurisdiction, the
permit shall be issued to the receiver or trustee.
"Orphan Well" means a well for which: (1) no fee assessment under
Section 19.7 of this Act has been paid or no other bond coverage has been
provided for 2 consecutive years; (2) no oil or gas has been produced from
the well or from the lease or unit on which the well is located for 2
consecutive years; and (3) no permittee or owner can be identified or
located by the Department. Orphaned wells include wells that may have been
drilled for purposes other than those for which a permit is required under
this Act if the well is a conduit for oil or salt water intrusions into
fresh water zones or onto the surface which may be caused by oil and gas
"Owner" means the person who has the right to drill into and produce
from any pool, and to appropriate the production either for the person or for
the person and another, or others, or solely for others, excluding the
mineral owner's royalty if
the right to drill and produce has been granted under an oil and gas lease.
An owner may also be a person granted the right to drill and operate an
injection (Class II UIC) well independent of the right to drill for and produce
oil or gas. When the right to drill, produce, and appropriate production is
held by more than one person, then all persons holding these rights may
designate the owner by a written operating agreement or similar written
agreement. In the absence of such an agreement, and subject to the provisions
of Sections 22.2 and 23.1 through 23.16 of this Act, the owner shall be the
person designated in writing by a majority in interest of the persons holding
"Department" means the Department of Natural Resources.
"Director" means the Director of Natural Resources.
"Mining Board" means the State Mining Board in the Department of Natural
Resources, Office of Mines
"Mineral Owner's Royalty" means the share of oil and gas production
reserved in an oil and gas lease free of all costs by an owner of the
minerals whether denominated royalty or overriding royalty.
"Waste" means "physical waste" as that term is generally understood in
the oil and gas industry, and further includes:
(1) the locating, drilling, and producing of any oil
or gas well or wells drilled contrary to the valid order, rules and regulations adopted by the Department under the provisions of this Act;
(2) permitting the migration of oil, gas, or water
from the stratum in which it is found, into other strata, thereby ultimately resulting in the loss of recoverable oil, gas or both;
(3) the drowning with water of any stratum or part
thereof capable of producing oil or gas, except for secondary recovery purposes;
(4) the unreasonable damage to underground, fresh or
mineral water supply, workable coal seams, or other mineral deposits in the operations for the discovery, development, production, or handling of oil and gas;
(5) the unnecessary or excessive surface loss or
destruction of oil or gas resulting from evaporation, seepage, leakage or fire, especially such loss or destruction incident to or resulting from the escape of gas into the open air in excessive or unreasonable amounts, provided, however, it shall not be unlawful for the operator or owner of any well producing both oil and gas to burn such gas in flares when such gas is, under the other provisions of this Act, lawfully produced, and where there is no market at the well for such escaping gas; and where the same is used for the extraction of casinghead gas, it shall not be unlawful for the operator of the plant after the process of extraction is completed, to burn such residue in flares when there is no market at such plant for such residue gas;
(6) permitting unnecessary fire hazards;
(7) permitting unnecessary damage to or destruction
of the surface, soil, animal, fish or aquatic life or property from oil or gas operations.
"Drilling Unit" means the surface area allocated by an order or
regulation of the Department to the drilling of a single well for the
production of oil or gas from an individual pool.
"Enhanced Recovery Method" means any method used in an effort to
recover hydrocarbons from a pool by injection of fluids, gases or other
substances to maintain, restore or augment natural reservoir energy, or by
introducing immiscible or miscible gases, chemicals, other substances or
heat or by in-situ combustion, or by any combination thereof.
"Well-Site Equipment" means any production-related equipment or materials
specific to the well, including motors, pumps, pump jacks, tanks, tank
batteries, separators, compressors, casing, tubing, and rods.
(Source: P.A. 99-78, eff. 7-20-15.)