Illinois General Assembly - Full Text of SB3246
Illinois General Assembly

Previous General Assemblies

Full Text of SB3246  100th General Assembly




SB3246 EngrossedLRB100 18756 XWW 33990 b

1    AN ACT concerning regulation.
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4    Section 5. The Illinois Oil and Gas Act is amended by
5changing Section 19.6 as follows:
6    (225 ILCS 725/19.6)  (from Ch. 96 1/2, par. 5430.1)
7    Sec. 19.6. The Department has the following specific powers
8and duties in administering the Oil and Gas Well Site Plugging
9and Restoration Program, Landowner Grant Program, and the
10Plugging and Restoration Fund:
11    (a) To adopt rules in conformity with this Act, including
12rules establishing priorities for well site plugging, repair,
13and restoration consistent with this Act.
14    (b) To adopt rules necessary to implement the Oil and Gas
15Well Site Plugging and Restoration Program and Landowner Grant
17    (c) To collect the fees assessed by the Department under
18this Act and to make deposits into the Plugging and Restoration
20    (d) To deposit the amount of any forfeited surety bond or
21other security in the Plugging and Restoration Fund.
22    (e) To recover well site plugging, repair, and restoration
23costs from permittees who fail to reimburse the Plugging and



SB3246 Engrossed- 2 -LRB100 18756 XWW 33990 b

1Restoration Fund for expenses attributable to those permittees
2and to deposit any amounts reimbursed or collected into the
3Plugging and Restoration Fund.
4    (f) To accept, receive, and deposit into the Plugging and
5Restoration Fund any grants, gifts, or other funds that may be
6made available from public or private sources.
7    (g) To make expenditures of amounts appropriated from the
8Plugging and Restoration Fund, as it may deem appropriate in
9its sole discretion, for the sole purposes of plugging,
10replugging, or repairing any well, restoring the site of any
11well, including but not limited to removal of well site
12equipment or production facilities, and for reimbursement to
13landowners for plugging a well and restoring the site of a
14well, including but not limited to removal of well site
15equipment located on the landowner's property, for which the
16landowner has no legal obligation to plug the wells or remove
17the well site equipment, if the well is determined by the
18Department to be abandoned or ordered by the Department to be
19plugged, replugged, repaired, or restored under Section 8a, 19,
2019.1, or 19.8 of this Act including the costs of administering
21the Oil and Gas Well Site Plugging and Restoration Program and
22, the Plugging and Restoration Fund, and the Landowner Grant
24    (h) To sell or assign any lien arising under Section 19.5
25of this Act to the highest and best bidder who may agree to
26perform the necessary plugging or corrective work as prescribed



SB3246 Engrossed- 3 -LRB100 18756 XWW 33990 b

1by the Department and to deposit the proceeds of such sale in
2the Plugging and Restoration Fund or to offset Department
3plugging costs.
4    (i) To enter into contracts in accordance with the Illinois
5Purchasing Act and to administer the Landowner Grant Program.
6In contracts or grants for the plugging, replugging, repairing
7or restoration of a well, well site, or an associated tank
8battery or production facility, the consideration paid by the
9Department may include the sale and assignment of any lien
10arising under Section 19.5 of this Act.
11    (j) To dispose in a commercially reasonable manner, at
12generally recognized market value, well site equipment,
13including an associated tank battery and production facility
14equipment, and any amount of hydrocarbons from the well that is
15stored on the lease, by either or both of the following methods
16after it has been determined to be abandoned by the Department
17through inclusion of the well in the Oil and Gas Well Site
18Plugging and Restoration Program:
19        (1) a plugging contract may provide that the person
20    plugging the well or remediating oil field waste pollution,
21    or both, will have clear title, subject to any perfected,
22    prior legal or equitable claim, on all well site equipment
23    and hydrocarbons from the well that are stored on the
24    lease, or hydrocarbons recovered during the plugging
25    operation in exchange for a sum of money deducted as a
26    credit from the contract price; or



SB3246 Engrossed- 4 -LRB100 18756 XWW 33990 b

1        (2) the well site equipment, including but not limited
2    to an associated tank battery and production facility
3    equipment, hydrocarbons from the well that are stored on
4    the lease, and hydrocarbons recovered during the plugging
5    operation may be sold at a public auction or a public or
6    private sale. All well site equipment and hydrocarbons
7    acquired by a person by sale shall be acquired under clear
8    title, subject to any perfected prior legal or equitable
9    claims.
10    (k) To transfer an amount from the Plugging and Restoration
11Fund not to exceed $250,000 per fiscal year, subject to
12appropriation and availability of funds, to the Illinois
13Petroleum Resources Board, for the sole purpose of implementing
14the Landowner Grant Program.
15(Source: P.A. 90-260, eff. 7-30-97.)
16    Section 10. The Illinois Petroleum Education and Marketing
17Act is amended by changing Section 15 and by adding Sections 60
18and 65 as follows:
19    (225 ILCS 728/15)
20    (Section scheduled to be repealed on January 1, 2028)
21    Sec. 15. Board powers and duties. The Board shall have the
22following powers and duties:
23        (1) To administer and enforce the provisions of this
24    Act.



SB3246 Engrossed- 5 -LRB100 18756 XWW 33990 b

1        (2) To establish an office for the Board within the
2    State of Illinois.
3        (3) To elect a chairperson and any other officers that
4    may be necessary to direct the operations of the Board.
5        (4) To employ personnel as shall be deemed necessary to
6    carry out the purpose and provisions of this Act and to
7    prescribe their duties and fix their compensation.
8        (5) To receive and administer all assessments,
9    donations, grants, contributions, and gifts received by
10    the Board pursuant to this Act and to deposit them into
11    accounts maintained by the Board.
12        (6) To annually establish priorities and approve a
13    prepared budget consistent with estimated resources.
14        (7) To adopt rules as it deems necessary to carry out
15    the provisions of this Act.
16        (8) To enter into contracts or agreements for studies,
17    research projects, experimental work, supplies, or other
18    services to carry out the purposes of this Act and to incur
19    those expenses necessary to carry out those purposes. A
20    contract or agreement entered into under this item shall
21    provide that:
22            (A) the person entering the contract or agreement
23        on behalf of the Board shall develop and submit to the
24        Board a plan or project together with a budget that
25        shows estimated costs to be incurred for the plan or
26        project; and



SB3246 Engrossed- 6 -LRB100 18756 XWW 33990 b

1            (B) the person entering the contract or agreement
2        shall keep accurate records of all of its transactions,
3        account for funds received and expended, and make
4        periodic reports to the Board of activities conducted
5        and other reports that the Board may require.
6        (9) To keep accurate records of all financial
7    transactions performed pursuant to this Act. These records
8    shall include a complete accounting of all funds received
9    by the Board for the Landowner Grant Program, including how
10    much was received, how the money was spent, and any money
11    remaining in a Board account at the end of the fiscal year.
12    These records shall be audited annually by an independent
13    auditor who is a certified public accountant and has been
14    selected by the Board, and an annual report shall be
15    compiled and made available to any interest owner and filed
16    with the Department within 60 days after the close of the
17    Board's fiscal year.
18        (10) To cooperate with any private, local, state, or
19    national commission, organization, agency, or group and to
20    make contracts and agreements for joint programs
21    beneficial to the oil and gas industry.
22        (11) To accept donations, grants, contributions, and
23    gifts from any public or private source and deposit them
24    into accounts maintained by the Board.
25        (12) To keep an accurate record of all assessments
26    collected.



SB3246 Engrossed- 7 -LRB100 18756 XWW 33990 b

1        (13) To enter into voluntary agreements with the
2    Department to support oilfield environmental remediation
3    and restoration activities.
4(Source: P.A. 100-220, eff. 8-18-17.)
5    (225 ILCS 728/60 new)
6    Sec. 60. Landowner Grant Program; powers and duties. The
7Board has the following specific powers and duties in
8administering the Landowner Grant Program:
9        (1) To adopt rules necessary to implement the Landowner
10    Grant Program; the rules of the Department that are in
11    effect on the effective date of this amendatory Act of the
12    100th General Assembly that pertain to the rights, powers,
13    duties, and functions transferred from the Department
14    under this amendatory Act of the 100th General Assembly
15    shall become the rules of the Board and shall continue in
16    effect until amended or repealed by the Board.
17        (2) To accept and receive funds from the Department to
18    administer the Landowner Grant Program and to deposit those
19    funds into accounts, operating or reserve, to be used as
20    authorized by Section 65.
21        (3) To make expenditures as it may deem appropriate in
22    its sole discretion for the sole purposes of providing
23    reimbursement to landowners for plugging a well and
24    restoring the site of a well, including, but not limited
25    to, removal of well site equipment located on the



SB3246 Engrossed- 8 -LRB100 18756 XWW 33990 b

1    landowner's property, for which the landowner has no legal
2    obligation to plug the wells or remove the well site
3    equipment, if the well is determined by the Department to
4    be abandoned or ordered by the Department to be plugged,
5    replugged, repaired, or restored under Section 8a, 19,
6    19.1, or 19.8 of the Illinois Oil and Gas Act.
7        (4) To enter into contracts to administer the Landowner
8    Grant Program.
9        (5) To expend funds collected under Section 30 of this
10    Act, as it may deem appropriate in its sole discretion, to
11    implement and administer the Landowner Grant Program, in
12    addition to funds received from the Department under this
13    Section.
14    (225 ILCS 728/65 new)
15    Sec. 65. Use of Department Landowner Grant Program funds.
16    (a) The Board shall utilize the funds received from the
17Department under Section 60 only for the purpose of
18implementing the Landowner Grant Program.
19    (b) All interest earned on moneys received by the Board
20under Section 60 shall be property of the Board and shall be
21used for the sole purpose of implementing the Landowner Grant