Full Text of HB5567 98th General Assembly
HB5567ham002 98TH GENERAL ASSEMBLY | Rep. Brandon W. Phelps Filed: 4/8/2014
| | 09800HB5567ham002 | | LRB098 19182 ZMM 58483 a |
|
| 1 | | AMENDMENT TO HOUSE BILL 5567
| 2 | | AMENDMENT NO. ______. Amend House Bill 5567 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 6.1 and 21.1 as follows:
| 6 | | (225 ILCS 725/6.1) (from Ch. 96 1/2, par. 5410)
| 7 | | Sec. 6.1.
When the applicant has complied with all | 8 | | applicable
provisions of this Act and the rules of the | 9 | | Department, the Department
shall issue the permit. All | 10 | | applications for a permit submitted to the Department shall | 11 | | either be granted or denied in writing within 20 business days | 12 | | after the date of receipt by the Department, unless the | 13 | | applicant and Department mutually agree to extend the 20-day | 14 | | period. If granted, the written permit shall be issued. If | 15 | | denied, the Department shall provide specific requirements for | 16 | | additional information or documentation needed for the |
| | | 09800HB5567ham002 | - 2 - | LRB098 19182 ZMM 58483 a |
|
| 1 | | application to be considered and the permit issued. Upon | 2 | | submission of the required information and documentation, the | 3 | | same process and timeframe as provided in this Section shall | 4 | | continue until either the permit is issued or it is determined | 5 | | that the permit cannot be issued because of legal or regulatory | 6 | | impediments. The Department shall respond in a timely manner to | 7 | | any application or submission of additional information and | 8 | | documentation after initial submission. If the Department does | 9 | | not timely respond to any application or submission of | 10 | | additional information and documentation after initial | 11 | | submission, then the application shall be deemed granted and | 12 | | the permit shall be issued by the Department within 3 working | 13 | | days after the expiration of the time to respond.
| 14 | | (Source: P.A. 85-1334.)
| 15 | | (225 ILCS 725/21.1) (from Ch. 96 1/2, par. 5433)
| 16 | | Sec. 21.1.
(a) The Department is authorized to issue | 17 | | permits for the
drilling of wells and to regulate the spacing | 18 | | of wells for oil and gas
purposes. For the prevention of waste, | 19 | | to protect and enforce the
correlative rights of owners in the | 20 | | pool, and to prevent the drilling of
unnecessary wells, the | 21 | | Department shall, upon application of any
interested person and | 22 | | after notice and hearing, establish a drilling unit
or units | 23 | | for the production of oil and gas or either of them for each | 24 | | pool,
provided that no spacing regulation shall be adopted nor | 25 | | drilling unit
established which requires the allocation of more |
| | | 09800HB5567ham002 | - 3 - | LRB098 19182 ZMM 58483 a |
|
| 1 | | than 40 acres of surface
area nor less than 10 acres of surface | 2 | | area to an individual well for
production of oil from a pool | 3 | | the top of which lies less than 4,000 feet
beneath the surface | 4 | | (as determined by the original or discovery well in the
pool), | 5 | | provided, however, that the Department may
permit the | 6 | | allocation
of greater acreage to an individual well than that | 7 | | above specified, and
provided further that the spacing of wells | 8 | | in any pool the top of which
lies less than 4,000 feet beneath | 9 | | the surface (as determined by the
original or discovery well in | 10 | | the pool) shall not include the fixing of a
pattern except with | 11 | | respect to the 2 nearest external boundary lines of
each | 12 | | drilling unit, and provided further that no acreage allocation | 13 | | shall
be required for input or injection wells nor for | 14 | | producing wells lying
within a secondary recovery unit as now | 15 | | or hereafter established.
| 16 | | (b) Drilling units shall be of approximately uniform size | 17 | | and shape for
each entire pool, except that where circumstances | 18 | | reasonably require, the
Department may grant exceptions to the | 19 | | size or shape
of any drilling unit
or units. Each order | 20 | | establishing drilling units shall specify the size and
shape of | 21 | | the unit, which shall be such as will result in the efficient | 22 | | and
economical development of the pool as a whole, and subject | 23 | | to the
provisions of subsection (a) hereof the size of no | 24 | | drilling unit shall be
smaller than the maximum area that can | 25 | | be efficiently and economically
drained by one well. Each order | 26 | | establishing drilling units for a pool
shall cover all lands |
| | | 09800HB5567ham002 | - 4 - | LRB098 19182 ZMM 58483 a |
|
| 1 | | determined or believed to be underlaid by such pool,
and may be | 2 | | modified by the Department from time to time to include
| 3 | | additional lands determined to be underlaid by such pool. Each | 4 | | order
establishing drilling units may be modified by the | 5 | | Department to change
the size thereof, or to permit the | 6 | | drilling of additional wells.
| 7 | | (b-2) Any petition requesting a drilling unit exception | 8 | | shall be accompanied by a non-refundable application fee in the | 9 | | amount of $1,500 for a Modified Drilling Unit or Special | 10 | | Drilling Unit or a non-refundable application fee in the amount | 11 | | of $2,500 for a Pool-Wide Drilling Unit. | 12 | | (c) Each order establishing drilling units shall prohibit | 13 | | the drilling
of more than one well on any drilling unit for the | 14 | | production of oil or gas
from the particular pool with respect | 15 | | to which the drilling unit is
established and subject to the | 16 | | provisions of subsection (a) hereof shall
specify the location | 17 | | for the drilling of such well thereon, in accordance
with a | 18 | | reasonably uniform spacing pattern, with necessary exceptions | 19 | | for
wells drilled or drilling at the time of the application. | 20 | | If the Department
finds, after notice and hearing, that surface | 21 | | conditions would
substantially add to the burden or hazard of | 22 | | drilling such well at the
specified location, or for some other | 23 | | reason it would be inequitable or
unreasonable to require a | 24 | | well to be drilled at the specified location, the
Department | 25 | | may issue an order permitting the well to be drilled at a
| 26 | | location other than that specified in the order establishing |
| | | 09800HB5567ham002 | - 5 - | LRB098 19182 ZMM 58483 a |
|
| 1 | | drilling
units.
| 2 | | (d) After the date of the notice for a hearing called to | 3 | | establish
drilling units, no additional well shall be commenced | 4 | | for production from
the pool until the order establishing | 5 | | drilling units has been issued,
unless the commencement of the | 6 | | well is authorized by order of the Department.
| 7 | | (e) After an order establishing a drilling unit or units | 8 | | has been issued
by the Department, the commencement of drilling | 9 | | of any
well or wells into
the pool with regard to which such | 10 | | unit was established for the purpose of
producing oil or gas | 11 | | therefrom, at a location other than that authorized by
the | 12 | | order, or by order granting exception to the original spacing | 13 | | order, is
hereby prohibited. The operation of any well drilled | 14 | | in violation of an
order establishing drilling units is hereby | 15 | | prohibited.
| 16 | | (f) Any application or petition by any interested person | 17 | | for a drilling unit as provided in this Section shall be | 18 | | accepted and filed or not accepted and filed by the Department | 19 | | within 10 business days after receipt by the Department. If the | 20 | | petition is accepted and filed, a public hearing on the | 21 | | petition shall be scheduled not less than 30 days, but not more | 22 | | than 60 days, after the acceptance and filing by the | 23 | | Department. If not accepted, and filed, the Department shall | 24 | | provide specific requirements for additional information or | 25 | | documentation needed for the petition to be considered, | 26 | | accepted, and filed. Upon submission of the required |
| | | 09800HB5567ham002 | - 6 - | LRB098 19182 ZMM 58483 a |
|
| 1 | | information and documentation, the same process and timeframe | 2 | | as provided in this subsection (f) shall continue until the | 3 | | petition has been accepted and filed at which time a hearing | 4 | | shall be scheduled as previously stated in this subsection (f). | 5 | | The petition shall not be accepted and filed if it is | 6 | | determined by the Department that, under any circumstance, | 7 | | legal or regulatory impediments would prevent such acceptance | 8 | | and filing. If the Department does not timely respond to any | 9 | | petition or the submission of additional information or | 10 | | documentation after initial submission, then the petition | 11 | | shall be deemed to be in sufficient form for acceptance and | 12 | | filing and the Department shall proceed with the scheduling of | 13 | | a public hearing. The Department, after public hearing, shall | 14 | | either grant or deny the petition within 20 working days after | 15 | | the conclusion of the hearing. | 16 | | (g) Any petition by an interested person to establish | 17 | | drilling units for a pool as provided in this Section shall be | 18 | | accepted and filed or not accepted and filed by the Department | 19 | | within 10 business days after receipt by the Department. If the | 20 | | petition is accepted and filed, a public hearing on the | 21 | | petition shall be scheduled not less than 30 days, but not more | 22 | | than 60 days, after the acceptance and filing by the | 23 | | Department. If not accepted and filed, the Department shall | 24 | | provide specific requirements for additional information or | 25 | | documentation needed for the petition to be considered, | 26 | | accepted, and filed. Upon submission of the required |
| | | 09800HB5567ham002 | - 7 - | LRB098 19182 ZMM 58483 a |
|
| 1 | | information and documentation, the same process and timeframe | 2 | | as provided in this subsection (g) shall continue until the | 3 | | petition has been accepted and filed at which time a hearing | 4 | | shall be scheduled as previously stated in this subsection (g). | 5 | | The petition shall not be accepted and filed if it is | 6 | | determined by the Department that, under any circumstance, | 7 | | legal or regulatory impediments would prevent such acceptance | 8 | | and filing. If the Department does not timely respond to any | 9 | | petition or the submission of additional information or | 10 | | documentation after initial submission, then the petition | 11 | | shall be deemed to be in sufficient form for acceptance and | 12 | | filing and the Department shall proceed with the scheduling of | 13 | | a public hearing. The Department, after public hearing, shall | 14 | | either grant or deny the petition within 20 working days after | 15 | | the conclusion of the hearing. | 16 | | (Source: P.A. 97-1136, eff. 1-1-13.)
| 17 | | Section 99. Effective date. This Act takes effect September | 18 | | 1, 2014.".
|
|