|
|
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 |
operations.
|
(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 |
operator.
|
(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 |
thereon.
|
(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 |