Full Text of SB1989 94th General Assembly
SB1989sam001 94TH GENERAL ASSEMBLY
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Sen. Gary Forby
Filed: 4/11/2005
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LRB094 11937 LCB 44630 a |
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| AMENDMENT TO SENATE BILL 1989
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| AMENDMENT NO. ______. Amend Senate Bill 1989 by replacing | 3 |
| everything after the enacting clause with the following:
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| "Section 5. The Drilling Operations Act is amended by | 5 |
| changing Section 6 as follows:
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| (765 ILCS 530/6) (from Ch. 96 1/2, par. 9656)
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| Sec. 6. Compensation of surface owners for drilling and | 8 |
| producing
operations and duties after cessation of production.
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| (A) The surface owner shall be entitled to reasonable | 10 |
| compensation from
the operator for damages as follows: | 11 |
| (1) To
to growing crops, trees, shrubs, fences, roads,
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| structures, improvements , personal property, and livestock | 13 |
| thereon caused by the drilling of a new
well. The surface | 14 |
| owner shall also be entitled to reasonable compensation
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| from the operator for subsequent damages | 16 |
| (2) To
to growing crops, trees, shrubs,
fences, roads, | 17 |
| structures, improvements , personal property, and livestock | 18 |
| thereon .
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| (3) For the loss of the value of a commercial crop | 20 |
| corresponding to lands taken out of production because of | 21 |
| the use thereof by the operator for roads and production | 22 |
| equipment. Any recovery shall only be applicable if the | 23 |
| area adjacent to said roads and production equipment are | 24 |
| planted and harvested. The value of the crop shall be |
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| calculated by: (i) determining the average per acre yield | 2 |
| for the crop on adjacent lands; (ii) determining the price | 3 |
| received for the sale of the crop on adjacent lands less | 4 |
| the cost of seed planting, chemicals, fertilizers and | 5 |
| harvesting; (iii) determining the acreage of the area | 6 |
| utilized for roads and production equipment; and (iv) | 7 |
| attributing the determined crop yield to the determined | 8 |
| acreage utilized and applying the determined price. The | 9 |
| initial determination of the value of the crop shall be | 10 |
| determined by the surface owner and submitted to the | 11 |
| operator. The surface owner and operator shall mutually | 12 |
| agree as to the value of the crop.
caused by
subsequent | 13 |
| production operations of the operator thereon. The surface
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| owner shall also be entitled to reasonable compensation
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| (4) For
for all negligent
acts of operator that cause | 16 |
| measurable damage to the productive capacity of
the soil. | 17 |
| In addition, | 18 |
| (B) The
the operator shall not utilize any more of the
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| surface estate than is reasonably necessary for the | 20 |
| exploration, production
and development of the mineral estate.
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| (B) The compensation required pursuant to paragraph (A) | 23 |
| above shall be
paid in any manner mutually agreed upon by the | 24 |
| operator and the surface
owner, but the failure to agree upon, | 25 |
| or make the compensation required,
shall not prevent the | 26 |
| operator from commencement of drilling operations;
provided, | 27 |
| however, that operator shall tender to the surface owner | 28 |
| payment by
check or draft in accordance with the provisions | 29 |
| herein no later than 90 days
after completion of the well. The | 30 |
| surface owner's remedy shall be an
action for compensation in | 31 |
| the circuit court in which the lands or the
greater part | 32 |
| thereof are located on which drilling operations were
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| conducted; provided, however, that if operator fails to tender | 34 |
| payment
within the 90-day period or if the tender is not |
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| reasonable, surface owner
shall be entitled to reasonable | 2 |
| compensation as provided herein as well as
attorney's fees.
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| If operator relies on a third party appraiser or fair | 4 |
| market value, such
amount shall be conclusively deemed to be | 5 |
| reasonable, and there shall be no
award of attorney's fees.
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| (C) Blank.
In conjunction with the plugging and abandonment | 7 |
| of any well, the
operator shall restore the surface to a | 8 |
| condition as near as practicable to
the condition of the | 9 |
| surface prior to commencement of drilling operations;
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| provided, however, that the surface owner and operator may | 11 |
| waive this
requirement in writing, subject to the approval of | 12 |
| the Department of Natural
Resources that the waiver is in | 13 |
| accordance with its
rules.
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| (D) Blank.
Where practicable and absent a written agreement | 15 |
| to the contrary
with the surface owner, all flow lines and | 16 |
| other underground structures
must be buried to a depth not less | 17 |
| than 36 inches from the surface.
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| (Source: P.A. 89-445, eff. 2-7-96.)".
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