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Rep. Jay Hoffman
Filed: 5/28/2026
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| 1 | | AMENDMENT TO SENATE BILL 3113
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| 2 | | AMENDMENT NO. ______. Amend Senate Bill 3113 by replacing |
| 3 | | everything after the enacting clause with the following: |
| 4 | | "Section 5. The Illinois Oil and Gas Act is amended by |
| 5 | | changing Sections 1, 6, 8a, 8e, 14, and 26 as follows: |
| 6 | | (225 ILCS 725/1) (from Ch. 96 1/2, par. 5401) |
| 7 | | Sec. 1. Unless the context otherwise requires, the words |
| 8 | | defined in this Section have the following meanings as used in |
| 9 | | this Act. |
| 10 | | "Department" means the Department of Natural Resources. |
| 11 | | "Director" means the Director of Natural Resources. |
| 12 | | "Drilling unit" means the surface area allocated by an |
| 13 | | order or rule of the Department to the drilling of a single |
| 14 | | well for the production of oil or gas from an individual pool. |
| 15 | | "Enhanced recovery method" means any method used in an |
| 16 | | effort to recover hydrocarbons from a pool by the injection of |
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| 1 | | fluids, gases, or other substances to maintain, restore, or |
| 2 | | augment natural reservoir energy, or by introducing immiscible |
| 3 | | or miscible gases, chemicals, or other substances, or heat, or |
| 4 | | by in-situ combustion, or by any combination thereof. |
| 5 | | "Field" means the same general surface area that is |
| 6 | | underlaid or appears to be underlaid by one or more pools. |
| 7 | | "Fresh water" means surface and subsurface water in its |
| 8 | | natural state useful as drinking water for human consumption, |
| 9 | | domestic livestock, irrigation, industrial, municipal, and |
| 10 | | recreational purposes, and that will support aquatic life and |
| 11 | | contains less than 10,000 ppm of total dissolved solids. |
| 12 | | "Person" means any natural person, corporation, |
| 13 | | association, partnership, governmental agency or other legal |
| 14 | | entity, receiver, trustee, guardian, executor, administrator, |
| 15 | | fiduciary or representative of any kind. |
| 16 | | "Oil" means natural crude oil or petroleum and other |
| 17 | | hydrocarbons, regardless of gravity, which are produced at the |
| 18 | | well in liquid form by ordinary production methods or by the |
| 19 | | use of an oil and gas separator and which are not the result of |
| 20 | | condensation of gas after it leaves the underground reservoir. |
| 21 | | "Gas" means all natural gas, including casinghead gas, and |
| 22 | | all other natural hydrocarbons not defined above as oil. |
| 23 | | "Mineral owner's royalty" means the share of oil and gas |
| 24 | | production reserved in an oil and gas lease, free of all costs |
| 25 | | by an owner of the minerals, whether denominated royalty or |
| 26 | | overriding royalty. |
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| 1 | | "Mining Board" means the State Mining Board in the |
| 2 | | Department of Natural Resources Office of Mines and Minerals. |
| 3 | | "Oil" means natural crude oil or petroleum and other |
| 4 | | hydrocarbons, regardless of gravity, which are produced at the |
| 5 | | well in liquid form by ordinary production methods or by the |
| 6 | | use of an oil and gas separator, which are not the result of |
| 7 | | condensation of gas after it leaves the underground reservoir. |
| 8 | | "Orphan well" means a well for which: (1) no fee |
| 9 | | assessment under Section 19.7 of this Act has been paid or no |
| 10 | | other bond coverage has been provided for 2 consecutive years; |
| 11 | | (2) no oil or gas has been produced from the well or from the |
| 12 | | lease or unit on which the well is located for 2 consecutive |
| 13 | | years; and (3) no permittee or owner can be identified or |
| 14 | | located by the Department. "Orphan well" includes a well that |
| 15 | | has been drilled for purposes other than those for which a |
| 16 | | permit is required under this Act if the well is a conduit for |
| 17 | | oil or salt water intrusions into fresh water zones or onto the |
| 18 | | surface, which may be caused by oil and gas operations. |
| 19 | | "Owner" means the person who has the right to drill into |
| 20 | | and produce from any pool and to appropriate the production |
| 21 | | either for the person or for the person and another, others, or |
| 22 | | solely for others, excluding the mineral owner's royalty, if |
| 23 | | the right to drill and produce has been granted under an oil |
| 24 | | and gas lease. "Owner" includes a person granted the right to |
| 25 | | drill and operate an injection (Class II UIC) well independent |
| 26 | | of the right to drill for and produce oil or gas. When the |
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| 1 | | right to drill, produce, and appropriate production is held by |
| 2 | | more than one person, then all persons holding these rights |
| 3 | | may designate the owner by a written operating agreement or |
| 4 | | similar written agreement. In the absence of such an |
| 5 | | agreement, and subject to the provisions of Sections 22.2 and |
| 6 | | 23.1 through 23.16 of this Act, the owner shall be the person |
| 7 | | designated in writing by a majority of the persons in interest |
| 8 | | holding these rights. |
| 9 | | "Permit" means the Department's written authorization |
| 10 | | allowing a well to be drilled, deepened, converted, or |
| 11 | | operated by an owner. |
| 12 | | "Permittee" means the owner holding or required to hold |
| 13 | | the permit, and who is also responsible for paying assessments |
| 14 | | in accordance with Section 19.7 of this Act, and, where |
| 15 | | applicable, executing and filing the bond associated with the |
| 16 | | well as principal, and who is responsible for compliance with |
| 17 | | all statutory and regulatory requirements pertaining to the |
| 18 | | well. |
| 19 | | When the right and responsibility for operating a well is |
| 20 | | vested in a receiver or trustee appointed by a court of |
| 21 | | competent jurisdiction, the permit shall be issued to the |
| 22 | | receiver or trustee. |
| 23 | | "Person" means any natural person, corporation, |
| 24 | | association, partnership, governmental agency, including any |
| 25 | | other legal entity, receiver, trustee, guardian, executor, |
| 26 | | administrator, fiduciary, or representative of any kind. |
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| 1 | | "Pool" means a natural, underground reservoir containing |
| 2 | | in whole or in part, a natural accumulation of oil or gas, or |
| 3 | | both. Each productive zone or stratum of a general structure, |
| 4 | | which is completely separated from any other zone or stratum |
| 5 | | in the structure, is deemed a separate "pool" as used herein. |
| 6 | | "Produced water" means water, regardless of chloride and |
| 7 | | total dissolved solids content that is produced in conjunction |
| 8 | | with oil and natural gas production or natural gas storage |
| 9 | | operations. |
| 10 | | "Temporary abandonment status" means a well that has |
| 11 | | received an authorization for temporary abandonment status |
| 12 | | from the Department. |
| 13 | | "Vacuum" means pressure that is reduced below the pressure |
| 14 | | of the atmosphere. |
| 15 | | "Field" means the same general surface area which is |
| 16 | | underlaid or appears to be underlaid by one or more pools. |
| 17 | | "Permit" means the Department's written authorization |
| 18 | | allowing a well to be drilled, deepened, converted, or |
| 19 | | operated by an owner. |
| 20 | | "Permittee" means the owner holding or required to hold |
| 21 | | the permit, and who is also responsible for paying assessments |
| 22 | | in accordance with Section 19.7 of this Act and, where |
| 23 | | applicable, executing and filing the bond associated with the |
| 24 | | well as principal and who is responsible for compliance with |
| 25 | | all statutory and regulatory requirements pertaining to the |
| 26 | | well. |
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| 1 | | When the right and responsibility for operating a well is |
| 2 | | vested in a receiver or trustee appointed by a court of |
| 3 | | competent jurisdiction, the permit shall be issued to the |
| 4 | | receiver or trustee. |
| 5 | | "Orphan Well" means a well for which: (1) no fee |
| 6 | | assessment under Section 19.7 of this Act has been paid or no |
| 7 | | other bond coverage has been provided for 2 consecutive years; |
| 8 | | (2) no oil or gas has been produced from the well or from the |
| 9 | | lease or unit on which the well is located for 2 consecutive |
| 10 | | years; and (3) no permittee or owner can be identified or |
| 11 | | located by the Department. Orphaned wells include wells that |
| 12 | | may have been drilled for purposes other than those for which a |
| 13 | | permit is required under this Act if the well is a conduit for |
| 14 | | oil or salt water intrusions into fresh water zones or onto the |
| 15 | | surface which may be caused by oil and gas operations. |
| 16 | | "Owner" means the person who has the right to drill into |
| 17 | | and produce from any pool, and to appropriate the production |
| 18 | | either for the person or for the person and another, or others, |
| 19 | | or solely for others, excluding the mineral owner's royalty if |
| 20 | | the right to drill and produce has been granted under an oil |
| 21 | | and gas lease. An owner may also be a person granted the right |
| 22 | | to drill and operate an injection (Class II UIC) well |
| 23 | | independent of the right to drill for and produce oil or gas. |
| 24 | | When the right to drill, produce, and appropriate production |
| 25 | | is held by more than one person, then all persons holding these |
| 26 | | rights may designate the owner by a written operating |
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| 1 | | agreement or similar written agreement. In the absence of such |
| 2 | | an agreement, and subject to the provisions of Sections 22.2 |
| 3 | | and 23.1 through 23.16 of this Act, the owner shall be the |
| 4 | | person designated in writing by a majority in interest of the |
| 5 | | persons holding these rights. |
| 6 | | "Department" means the Department of Natural Resources. |
| 7 | | "Director" means the Director of Natural Resources. |
| 8 | | "Mining Board" means the State Mining Board in the |
| 9 | | Department of Natural Resources, Office of Mines and Minerals. |
| 10 | | "Mineral Owner's Royalty" means the share of oil and gas |
| 11 | | production reserved in an oil and gas lease free of all costs |
| 12 | | by an owner of the minerals whether denominated royalty or |
| 13 | | overriding royalty. |
| 14 | | "Waste" means "physical waste" as that term is generally |
| 15 | | understood in the oil and gas industry, and further includes: |
| 16 | | (1) the locating, drilling, and producing of any oil |
| 17 | | or gas well or wells drilled contrary to the valid order, |
| 18 | | rules and regulations adopted by the Department under the |
| 19 | | provisions of this Act; |
| 20 | | (2) permitting the migration of oil, gas, or water |
| 21 | | from the stratum in which it is found, into other strata, |
| 22 | | thereby ultimately resulting in the loss of recoverable |
| 23 | | oil, gas or both; |
| 24 | | (3) the drowning with water of any stratum or part |
| 25 | | thereof capable of producing oil or gas, except for |
| 26 | | secondary recovery purposes; |
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| 1 | | (4) the unreasonable damage to underground, fresh or |
| 2 | | mineral water supply, workable coal seams, or other |
| 3 | | mineral deposits in the operations for the discovery, |
| 4 | | development, production, or handling of oil and gas; |
| 5 | | (5) the unnecessary or excessive surface loss or |
| 6 | | destruction of oil or gas resulting from evaporation, |
| 7 | | seepage, leakage or fire, especially such loss or |
| 8 | | destruction incident to or resulting from the escape of |
| 9 | | gas into the open air in excessive or unreasonable |
| 10 | | amounts, provided, however, it shall not be unlawful for |
| 11 | | the operator or owner of any well producing both oil and |
| 12 | | gas to burn such gas in flares when such gas is, under the |
| 13 | | other provisions of this Act, lawfully produced, and where |
| 14 | | there is no market at the well for such escaping gas; and |
| 15 | | where the same is used for the extraction of casinghead |
| 16 | | gas, it shall not be unlawful for the operator of the plant |
| 17 | | after the process of extraction is completed, to burn such |
| 18 | | residue in flares when there is no market at such plant for |
| 19 | | such residue gas; |
| 20 | | (6) permitting unnecessary fire hazards; and |
| 21 | | (7) permitting unnecessary damage to or destruction of |
| 22 | | the surface, soil, animal, fish or aquatic life or |
| 23 | | property from oil or gas operations. |
| 24 | | "Drilling Unit" means the surface area allocated by an |
| 25 | | order or regulation of the Department to the drilling of a |
| 26 | | single well for the production of oil or gas from an individual |
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| 1 | | pool. |
| 2 | | "Enhanced Recovery Method" means any method used in an |
| 3 | | effort to recover hydrocarbons from a pool by injection of |
| 4 | | fluids, gases or other substances to maintain, restore or |
| 5 | | augment natural reservoir energy, or by introducing immiscible |
| 6 | | or miscible gases, chemicals, other substances or heat or by |
| 7 | | in-situ combustion, or by any combination thereof. |
| 8 | | "Well-Site Equipment" means any production-related |
| 9 | | equipment or materials specific to the well, including motors, |
| 10 | | pumps, pump jacks, tanks, tank batteries, separators, |
| 11 | | compressors, casing, tubing, and rods. |
| 12 | | "Temporary abandonment status" means a well that has |
| 13 | | received an authorization for temporary abandonment status |
| 14 | | from the Department. |
| 15 | | (Source: P.A. 102-1017, eff. 1-1-23.) |
| 16 | | (225 ILCS 725/6) (from Ch. 96 1/2, par. 5409) |
| 17 | | Sec. 6. The Department shall have the authority to conduct |
| 18 | | hearings and to make such reasonable rules as may be necessary |
| 19 | | from time to time in the proper administration and enforcement |
| 20 | | of this Act, including the adoption of rules and the holding of |
| 21 | | hearings for the following purposes: |
| 22 | | (1) To require the drilling, casing and plugging of |
| 23 | | wells to be done in such a manner as to prevent the |
| 24 | | migration of oil or gas from one stratum to another; to |
| 25 | | prevent the intrusion of water into oil, gas or coal |
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| 1 | | strata; to prevent the pollution of fresh water supplies |
| 2 | | by oil, gas or salt water. |
| 3 | | (2) To require the person desiring or proposing to |
| 4 | | drill, deepen or convert any well for the exploration or |
| 5 | | production of oil or gas, for injection or water supply in |
| 6 | | connection with enhanced recovery projects, for the |
| 7 | | disposal of salt water, brine, or other oil or gas field |
| 8 | | wastes, or for input, withdrawal, or observation in |
| 9 | | connection with the storage of natural gas or other liquid |
| 10 | | or gaseous hydrocarbons before commencing the drilling, |
| 11 | | deepening or conversion of any such well, to make |
| 12 | | application to the Department upon such form as the |
| 13 | | Department may prescribe and to comply with the provisions |
| 14 | | of this Section. The drilling, deepening or conversion of |
| 15 | | any well is hereby prohibited until such application is |
| 16 | | made and the applicant is issued a permit therefor as |
| 17 | | provided by this Act. Each application for a well permit |
| 18 | | shall include the following: (A) The exact location of the |
| 19 | | well, (B) the name and address of the manager, operator, |
| 20 | | contractor, driller, or any other person responsible for |
| 21 | | the conduct of drilling operations, (C) the proposed depth |
| 22 | | of the well, (D) lease ownership information, and (E) such |
| 23 | | other relevant information as the Department may deem |
| 24 | | necessary or convenient to effectuate the purposes of this |
| 25 | | Act. |
| 26 | | (2.5) Additionally, for each applicant who has not |
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| 1 | | been issued a permit that is (i) not of record with the |
| 2 | | Department on the effective date of this amendatory Act of |
| 3 | | the 104th General Assembly, or (ii) a permittee on record |
| 4 | | with the Department but who has failed to make payments of |
| 5 | | the assessments as required under Section 19.7 of this Act |
| 6 | | at any time in the preceding 5 years of the application, |
| 7 | | the permittee or applicant shall execute, as principal, |
| 8 | | and file with the Department a bond, executed by a surety |
| 9 | | authorized to transact business in this State, in an |
| 10 | | amount estimated to cover the cost of plugging the well |
| 11 | | and restoring the well site and shall set at the following |
| 12 | | rates: |
| 13 | | (A) $10,000 for one well; |
| 14 | | (B) $25,000 in total covering a blanket bond for |
| 15 | | up to 10 wells; |
| 16 | | (C) $50,000 in total covering a blanket bond for |
| 17 | | up to 50 wells; or |
| 18 | | (D) $100,000 in total covering a blanket bond for |
| 19 | | up to 100 wells. |
| 20 | | A blanket bond covering more than 100 wells shall be |
| 21 | | increased to include the bond amount, as provided in this |
| 22 | | paragraph (2.5), for the total number of wells more than |
| 23 | | 100 that are covered by the blanket bond. Such bond shall |
| 24 | | be submitted to the Department before drilling, deepening, |
| 25 | | converting, or operating any well for which a new or |
| 26 | | transfer permit is required and that has not previously |
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| 1 | | been plugged and abandoned in accordance with the Act. The |
| 2 | | Department shall release the bond if any of the following |
| 3 | | are met: |
| 4 | | (i) all wells covered by the bond are plugged and |
| 5 | | all well sites are restored in accordance with this |
| 6 | | Act and administrative rules; |
| 7 | | (ii) all wells covered by the bond are transferred |
| 8 | | in accordance with this Act and administrative rules; |
| 9 | | or |
| 10 | | (iii) the permittee pays assessments to the |
| 11 | | Department in accordance with Section 19.7 of this Act |
| 12 | | for 5 consecutive years from the date of issuance of a |
| 13 | | permit after the effective date of this amendatory Act |
| 14 | | of the 104th General Assembly and the permittee is not |
| 15 | | in violation of this Act or any administrative rules. |
| 16 | | In lieu of a surety bond, the applicant may provide |
| 17 | | certificates of deposit or irrevocable letters of credit |
| 18 | | under such terms and conditions as the Department may |
| 19 | | provide by rule. |
| 20 | | The sureties on all bonds in effect on this amendatory |
| 21 | | Act of the 104th General Assembly shall remain liable as |
| 22 | | sureties in accordance with their undertakings until |
| 23 | | released by the Department from further liability under |
| 24 | | the Act. The principal on each bond in effect on the |
| 25 | | effective date of this amendatory Act of the 104th General |
| 26 | | Assembly shall be released from the obligation of |
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| 1 | | maintaining the bond if the well covered by a surety bond |
| 2 | | has been plugged and the well site restored in accordance |
| 3 | | with the Department's rules or the principal of the surety |
| 4 | | has paid the initial assessment in accordance with Section |
| 5 | | 19.7 and no well or well site covered by the surety bond is |
| 6 | | in violation of the Act. |
| 7 | | No permit shall be issued to a corporation |
| 8 | | incorporated outside of Illinois until the corporation has |
| 9 | | been authorized to do business in Illinois. |
| 10 | | No permit shall be issued to an individual, |
| 11 | | partnership, or other unincorporated entity that is not a |
| 12 | | resident of Illinois until that individual, partnership, |
| 13 | | or other unincorporated entity has irrevocably consented |
| 14 | | to be sued in Illinois. |
| 15 | | (3) To require the person assigning, transferring, or |
| 16 | | selling any well for which a permit is required under this |
| 17 | | Act to notify the Department of the change of ownership. |
| 18 | | The notification shall be on a form prescribed by the |
| 19 | | Department, shall be executed by the current permittee and |
| 20 | | by the new permittee, or their authorized representatives, |
| 21 | | and shall be filed with the Department within 30 days |
| 22 | | after the effective date of the assignment, transfer or |
| 23 | | sale. Within the 30-day 30 day notification period and |
| 24 | | prior to operating the well, the new permittee shall pay |
| 25 | | the required well transfer fee and, where applicable, file |
| 26 | | with the Department the bond required under subsection |
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| 1 | | (2.5) of this Section. |
| 2 | | (4) To require the filing with the State Geological |
| 3 | | Survey of all geophysical logs, a well drilling report and |
| 4 | | drill cuttings or cores, if cores are required, within 90 |
| 5 | | days after drilling ceases; and to file a completion |
| 6 | | report with the Department within 30 days after the date |
| 7 | | of first production following initial drilling or any |
| 8 | | reworking, or after the plugging of the well, if a dry |
| 9 | | hole. A copy of each completion report submitted to the |
| 10 | | Department shall be delivered to the State Geological |
| 11 | | Survey. The Department and the State Geological Survey |
| 12 | | shall keep the reports confidential, if requested in |
| 13 | | writing by the permittee, for 2 years after the date the |
| 14 | | permit is issued by the Department. This confidentiality |
| 15 | | requirement shall not prohibit the use of the report for |
| 16 | | research purposes, provided the State Geological Survey |
| 17 | | does not publish specific data or identify the well to |
| 18 | | which the completion report pertains. |
| 19 | | (5) To prevent "blowouts", "caving" and "seepage" in |
| 20 | | the same sense that conditions indicated by such terms are |
| 21 | | generally understood in the oil and gas business. |
| 22 | | (6) To prevent fires. |
| 23 | | (7) To ascertain and identify the ownership of all oil |
| 24 | | and gas wells, producing leases, refineries, tanks, |
| 25 | | plants, structures, and all storage and transportation |
| 26 | | equipment and facilities. |
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| 1 | | (8) To regulate the use of any enhanced recovery |
| 2 | | method in oil pools and oil fields. |
| 3 | | (9) To regulate or prohibit the use of vacuum, |
| 4 | | including charging a vacuum permit application fee of up |
| 5 | | to $300 per permit. |
| 6 | | (10) To regulate the spacing of wells, the issuance of |
| 7 | | permits, and the establishment of drilling units. |
| 8 | | (11) To regulate directional drilling of oil or gas |
| 9 | | wells. |
| 10 | | (12) To regulate the plugging of wells. |
| 11 | | (13) To require that wells for which no logs or |
| 12 | | unsatisfactory logs are supplied shall be completely |
| 13 | | plugged with cement from bottom to top. |
| 14 | | (14) To require a description in such form as is |
| 15 | | determined by the Department of the method of well |
| 16 | | plugging for each well, indicating the character of |
| 17 | | material used and the positions and dimensions of each |
| 18 | | plug. |
| 19 | | (15) To prohibit waste, as defined in this Act. |
| 20 | | (16) To require the keeping of such records, the |
| 21 | | furnishing of such relevant information and the |
| 22 | | performance of such tests as the Department may deem |
| 23 | | necessary to carry into effect the purposes of this Act. |
| 24 | | (17) To regulate the disposal of salt or |
| 25 | | sulphur-bearing water and any oil field waste produced in |
| 26 | | the operation of any oil or gas well. |
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| 1 | | (18) To prescribe rules, conduct inspections and |
| 2 | | require compliance with health and safety standards for |
| 3 | | the protection of persons working underground in |
| 4 | | connection with any oil and gas operations. For the |
| 5 | | purposes of this paragraph, oil and gas operations include |
| 6 | | drilling or excavation, production operations, plugging or |
| 7 | | filling in and sealing, or any other work requiring the |
| 8 | | presence of workers in shafts or excavations beneath the |
| 9 | | surface of the earth. Rules promulgated by the Department |
| 10 | | may include minimum qualifications of persons performing |
| 11 | | tasks affecting the health and safety of workers |
| 12 | | underground, minimum standards for the operation and |
| 13 | | maintenance of equipment, and safety procedures and |
| 14 | | precautions, and shall conform, as nearly as practicable, |
| 15 | | to corresponding qualifications, standards and procedures |
| 16 | | prescribed under the Coal Mining Act. |
| 17 | | (19) To deposit the amount of any forfeited surety |
| 18 | | bond or other security in the Plugging and Restoration |
| 19 | | Fund, a special fund in the State treasury which is hereby |
| 20 | | created; to deposit into the Fund any amounts collected, |
| 21 | | reimbursed or recovered by the Department under Sections |
| 22 | | 19.5, 19.6 and 19.7 of this Act; to accept, receive, and |
| 23 | | deposit into the Fund any grants, gifts or other funds |
| 24 | | which may be made available from public or private sources |
| 25 | | and all earnings received from investment of monies in the |
| 26 | | Fund; and to make expenditures from the Fund for the |
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| 1 | | purposes of plugging, replugging or repairing any well, |
| 2 | | and restoring the site of any well, determined by the |
| 3 | | Department to be abandoned or ordered by the Department to |
| 4 | | be plugged, replugged, repaired or restored under Sections |
| 5 | | 8a, 19 or 19.1 of this Act, including expenses in |
| 6 | | administering the Fund. |
| 7 | | For the purposes of this Act, the State Geological Survey |
| 8 | | shall co-operate with the Department in making available its |
| 9 | | scientific and technical information on the oil and gas |
| 10 | | resources of the State, and the Department shall in turn |
| 11 | | furnish a copy to the State Geological Survey of all drilling |
| 12 | | permits as issued, and such other drilling and operating data |
| 13 | | received or secured by the Department which are pertinent to |
| 14 | | scientific research on the State's mineral resources. |
| 15 | | (Source: P.A. 104-150, eff. 1-1-26.) |
| 16 | | (225 ILCS 725/8a) (from Ch. 96 1/2, par. 5413) |
| 17 | | Sec. 8a. When an inspector or other authorized employee or |
| 18 | | agent of the Department determines that any permittee, or any |
| 19 | | person engaged in conduct or activities required to be |
| 20 | | permitted under this Act, is in violation of any requirement |
| 21 | | of this Act or the rules adopted hereunder or any permit |
| 22 | | condition, or has falsified or otherwise misstated any |
| 23 | | information on or relative to any application, permit, |
| 24 | | required record, or other document required to be submitted to |
| 25 | | the Department by this Act or any rules or procedures adopted |
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| 1 | | under this Act, a notice of violation shall be completed and |
| 2 | | delivered to the Director or his designee. |
| 3 | | The notice shall contain: |
| 4 | | 1. the nature of the violation; |
| 5 | | 2. the action needed to abate the violation, including |
| 6 | | any appropriate remedial measures to prevent future |
| 7 | | violation such as replacement, repair, testing and |
| 8 | | reworking a well and any appurtenances and equipment; |
| 9 | | 3. the time within which the violation is to be |
| 10 | | abated; and |
| 11 | | 4. any factors known to the person completing the |
| 12 | | notice of violation in aggravation or mitigation and the |
| 13 | | existence of any factors indicating that the permit should |
| 14 | | be conditioned or modified. |
| 15 | | Upon receipt of a notice of violation, the Director shall |
| 16 | | conduct his investigation and may affirm, vacate or modify the |
| 17 | | notice of violation. In determining whether to take actions in |
| 18 | | addition to remedial action necessary to abate a violation, |
| 19 | | the Director shall consider the person's or permittee's |
| 20 | | history of previous violations including violations at other |
| 21 | | locations and under other permits, the seriousness of the |
| 22 | | violation including any irreparable harm to the environment or |
| 23 | | damage to property, the degree of culpability of the person or |
| 24 | | permittee and the existence of any additional conditions or |
| 25 | | factors in aggravation or mitigation including information |
| 26 | | provided by the person or permittee. |
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| 1 | | The Director shall serve the person or permittee with his |
| 2 | | decision at the conclusion of the investigation. Modification |
| 3 | | of the notice of violation may include: |
| 4 | | 1. any different or additional remedial action |
| 5 | | required to abate the violation and the time within which |
| 6 | | the violation must be abated; |
| 7 | | 2. the assessment of civil penalties not to exceed |
| 8 | | $5,000 for each and every falsification or misstatement of |
| 9 | | information and civil penalties not to exceed $4,000 per |
| 10 | | and $1,000 a day for each and every act of violation not |
| 11 | | including a falsification or misstatement of information; |
| 12 | | 3. probationary or permanent modification or |
| 13 | | conditions on the permit which may include special |
| 14 | | monitoring or reporting requirements; and |
| 15 | | 4. revocation of the permit. |
| 16 | | The Director's decision shall provide that the person or |
| 17 | | permittee has the right to request a hearing. |
| 18 | | The Director's decision affirming, vacating or modifying |
| 19 | | the notice of violation shall be considered served when mailed |
| 20 | | by first class mail to the person or permittee at his last |
| 21 | | known address. |
| 22 | | A person or permittee shall have 30 days from the date of |
| 23 | | service of the Director's decision to request a hearing. If |
| 24 | | the Director's decision includes the assessment of a civil |
| 25 | | penalty, the person or permittee charged with the penalty |
| 26 | | shall pay the penalty in full or, if the person or permittee |
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| 1 | | wishes to contest either the amount of the penalty or the fact |
| 2 | | of the violation, submit the assessed amount, with the request |
| 3 | | for a hearing, to be held in escrow. The filing of a request |
| 4 | | for a hearing shall not operate as a stay of the Director's |
| 5 | | decision. All civil penalties finally assessed and paid to the |
| 6 | | Department shall be deposited in the Underground Resources |
| 7 | | Conservation Enforcement Fund. |
| 8 | | Any person who willfully or knowingly authorized, ordered, |
| 9 | | or carried out any violation cited in the Director's decision |
| 10 | | shall be subject to the same actions, including civil |
| 11 | | penalties, which may be imposed on the person or permittee |
| 12 | | under this Section. |
| 13 | | Upon receipt of a request, the Department shall provide an |
| 14 | | opportunity for a formal hearing upon not less than 5 days |
| 15 | | notice. The hearing shall be conducted by the Director or |
| 16 | | anyone designated by him for such purpose, and shall be |
| 17 | | located and conducted in accordance with the rules of the |
| 18 | | Department. Failure of the person or permittee to timely |
| 19 | | request a hearing or, if a civil penalty has been assessed, to |
| 20 | | timely tender the assessed civil penalty, shall constitute a |
| 21 | | waiver of all legal rights to contest the Director's decision, |
| 22 | | including the amount of any civil penalty. Within 30 days of |
| 23 | | the close of the hearing record or expiration of the time to |
| 24 | | request a hearing, the Department shall issue a final |
| 25 | | administrative order. |
| 26 | | If, at the expiration of the period of time originally |
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| 1 | | fixed in the Director's decision or in any subsequent |
| 2 | | extension of time granted by the Department, the Department |
| 3 | | finds that the violation has not been abated, it may |
| 4 | | immediately order the cessation of operations or the portions |
| 5 | | thereof relevant to the violation. Such cessation order shall |
| 6 | | be served in the manner and within the time prescribed in |
| 7 | | Section 19.1 of this Act. |
| 8 | | Pending the holding of any hearing or entry of a final |
| 9 | | administrative order under this Section, the person or |
| 10 | | permittee to whom the cessation order was issued may file a |
| 11 | | written request for temporary relief subject to the same terms |
| 12 | | and conditions as are provided for in Section 19.1 of this Act. |
| 13 | | If the Department finds that a person or permittee has |
| 14 | | failed to comply with a final administrative order, the |
| 15 | | Department may immediately order the cessation of operations |
| 16 | | or the portions thereof relevant to the final administrative |
| 17 | | order. Such cessation order shall be served in the manner and |
| 18 | | within the time prescribed in Section 19.1 of this Act. The |
| 19 | | Department shall commence a hearing within 5 days after |
| 20 | | issuance of a cessation order and shall conclude such hearing |
| 21 | | without appreciable delay. At the hearing the Department shall |
| 22 | | have the burden of proving that the person or permittee has not |
| 23 | | complied with the final administrative order. A cessation |
| 24 | | order issued under this paragraph shall continue in effect |
| 25 | | until modified, vacated, or terminated by the Department. |
| 26 | | The Department shall refuse to issue a permit or permits, |
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| 1 | | and shall revoke any permit or permits previously issued if: |
| 2 | | (1) the applicant has falsified or otherwise misstated |
| 3 | | any information on or relative to the permit application; |
| 4 | | (2) the applicant has failed to abate a violation of |
| 5 | | the Act specified in a final administrative decision of |
| 6 | | the Department; |
| 7 | | (3) an officer, director, partner, or person with an |
| 8 | | interest in the applicant exceeding 5% failed to abate a |
| 9 | | violation of the Act specified in a final administrative |
| 10 | | decision of the Department; or |
| 11 | | (4) the applicant is an officer, director, partner, or |
| 12 | | person with an interest exceeding 5% in another entity |
| 13 | | that has failed to abate a violation of the Act specified |
| 14 | | in a final administrative decision of the Department. |
| 15 | | (Source: P.A. 99-137, eff. 1-1-16.) |
| 16 | | (225 ILCS 725/8e) |
| 17 | | Sec. 8e. Temporary abandonment status fees. |
| 18 | | (a) The Department shall assess and collect annual fees of |
| 19 | | $100 per well for each well that is in temporary abandonment |
| 20 | | status. |
| 21 | | (b) All annual fees collected pursuant to subsection (a) |
| 22 | | shall be deposited into the Plugging and Restoration Fund, and |
| 23 | | one-half of all such deposited fees shall be used solely for |
| 24 | | the Landowner Grant Program. deposited as follows: (1) |
| 25 | | one-half of all such fees shall be placed in the Plugging and |
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| 1 | | Restoration Fund; and (2) one-half of all such fees shall be |
| 2 | | placed in the Landowner Grant Program. |
| 3 | | (Source: P.A. 102-1017, eff. 1-1-23.) |
| 4 | | (225 ILCS 725/14) (from Ch. 96 1/2, par. 5420) |
| 5 | | Sec. 14. Each application for a permit to drill, deepen, |
| 6 | | convert, or amend shall be accompanied by the required fee of |
| 7 | | $400. The fee for an application for a permit to oil lease road |
| 8 | | shall be $150. A fee of $75 for the first 100 wells and $50 for |
| 9 | | each well in excess of 100 shall be paid by the new owner for |
| 10 | | each transfer of well ownership. Except for the assessments |
| 11 | | required to be deposited in the Plugging and Restoration Fund |
| 12 | | under Section 19.7 of this Act and any other deposits required |
| 13 | | to be deposited in the Plugging and Restoration Fund under |
| 14 | | this Act, all fees assessed and collected under this Act shall |
| 15 | | be deposited in the Underground Resources Conservation |
| 16 | | Enforcement Fund. The moneys monies deposited into the |
| 17 | | Plugging and Restoration Fund or the Underground Resources |
| 18 | | Conservation Enforcement Fund under this Section or deposited |
| 19 | | into the Plugging and Restoration Fund under Section 26 shall |
| 20 | | not be subject to administrative charges or chargebacks unless |
| 21 | | otherwise authorized by this Act. |
| 22 | | On and after July 1, 2022, any fees that are created by or |
| 23 | | increased by this amendatory Act of the 102nd General Assembly |
| 24 | | in this Section shall be deposited into the Plugging and |
| 25 | | Restoration Fund. |
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| 1 | | (Source: P.A. 102-1017, eff. 1-1-23.) |
| 2 | | (225 ILCS 725/26) (from Ch. 96 1/2, par. 5456) |
| 3 | | Sec. 26. (a) Any person who violates any provision of this |
| 4 | | Act or any valid rule, regulation, permit or order of the |
| 5 | | Department made hereunder, or who repeats or continues the |
| 6 | | violation thereof, shall be subject to a civil penalty not to |
| 7 | | exceed: |
| 8 | | (1) $1,000 a day for each and every act of violation |
| 9 | | lasting 90 days or less. |
| 10 | | (2) $2,000 a day for any violation lasting more than |
| 11 | | 90 days but less than 180 days. |
| 12 | | (3) $4,000 a day for any violation lasting 180 days or |
| 13 | | more. |
| 14 | | Any civil penalties that are assessed in excess of $1,000 |
| 15 | | per day shall be deposited into the Plugging and Restoration |
| 16 | | Fund. |
| 17 | | Civil penalties may not be assessed until notice has been |
| 18 | | sent to the permittee. Such notice may be sent electronically |
| 19 | | at the time the notice of violation is sent to the Springfield |
| 20 | | office of the Department. |
| 21 | | A permittee may notify the Department if an extraordinary |
| 22 | | circumstance prevents abatement of a violation for which civil |
| 23 | | penalties are sought to be assessed against the permittee. If |
| 24 | | the permittee notifies the Department, the permittee shall |
| 25 | | then provide evidence of the extraordinary circumstance to the |
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| 1 | | Department, as set forth by rule. The assessment of a civil |
| 2 | | penalty shall not begin until the extraordinary circumstance |
| 3 | | terminates, as set forth by rule. The process to declare an |
| 4 | | extraordinary circumstance, the Department's review and |
| 5 | | approval of the extraordinary circumstance, and any appeal of |
| 6 | | the Department's determination shall be set by rule. An |
| 7 | | extraordinary circumstance shall include, but not be limited |
| 8 | | to, roads being posted with a weight limit that prevents the |
| 9 | | movement of equipment, wet field conditions that prevent |
| 10 | | mitigation activities, or flooding that prevents the movement |
| 11 | | of equipment for the abatement. |
| 12 | | (b) Any person willfully wilfully aiding or abetting any |
| 13 | | other person in the violation of any provision of this Act, or |
| 14 | | any rule, regulation and order made hereunder, shall be |
| 15 | | subject to the same penalties as are prescribed herein for the |
| 16 | | violation by such other person. |
| 17 | | (Source: P.A. 85-1334.)". |