Full Text of SB3246 100th General Assembly
SB3246eng 100TH GENERAL ASSEMBLY |
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| 1 | | AN ACT concerning regulation.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Illinois Oil and Gas Act is amended by | 5 | | changing 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 | 8 | | and duties
in administering the Oil and Gas Well Site Plugging | 9 | | and Restoration Program ,
Landowner Grant Program, and
the | 10 | | Plugging and Restoration Fund:
| 11 | | (a) To adopt rules in conformity with this Act, including | 12 | | rules
establishing priorities for well site plugging, repair, | 13 | | and restoration
consistent with this Act.
| 14 | | (b) To adopt rules necessary to implement
the Oil and Gas | 15 | | Well Site Plugging and Restoration Program and Landowner
Grant | 16 | | Program .
| 17 | | (c) To collect the fees assessed by the Department under | 18 | | this Act
and to make deposits into the Plugging and Restoration | 19 | | Fund.
| 20 | | (d) To deposit the amount of any forfeited surety bond or | 21 | | other security
in the Plugging and Restoration Fund.
| 22 | | (e) To recover well site plugging, repair, and restoration | 23 | | costs from
permittees who fail to reimburse the Plugging and |
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| 1 | | Restoration Fund for
expenses attributable to those permittees | 2 | | and to deposit any amounts
reimbursed or collected into the | 3 | | Plugging and Restoration Fund.
| 4 | | (f) To accept, receive, and deposit into the Plugging and | 5 | | Restoration
Fund any grants, gifts, or other funds that may be | 6 | | made available from
public or private sources.
| 7 | | (g) To make expenditures of amounts appropriated from the | 8 | | Plugging and
Restoration Fund, as it may deem appropriate in | 9 | | its sole discretion, for
the sole purposes of plugging, | 10 | | replugging, or repairing any well,
restoring the site of any | 11 | | well, including but not limited to removal of well
site | 12 | | equipment or
production facilities, and for reimbursement to | 13 | | landowners for plugging a well
and restoring the site of a | 14 | | well, including but not limited to removal of well
site | 15 | | equipment
located on the landowner's property, for which the | 16 | | landowner has no legal
obligation to plug the wells or remove | 17 | | the well site equipment, if the well
is determined by the
| 18 | | Department to be
abandoned or ordered by the Department to be | 19 | | plugged, replugged, repaired,
or restored under Section 8a, 19, | 20 | | 19.1, or 19.8 of this Act including the
costs of administering | 21 | | the Oil and Gas Well Site Plugging and Restoration
Program and | 22 | | , the Plugging and Restoration Fund , and the Landowner
Grant
| 23 | | Program .
| 24 | | (h) To sell or assign any lien arising under Section 19.5 | 25 | | of this Act to
the highest and best bidder who may agree to | 26 | | perform the necessary plugging or corrective work as
prescribed |
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| 1 | | by the Department and to deposit the proceeds of such sale in
| 2 | | the Plugging and Restoration Fund or to offset Department | 3 | | plugging costs.
| 4 | | (i) To enter into contracts in accordance with the Illinois | 5 | | Purchasing
Act and to administer the Landowner Grant Program . | 6 | | In contracts or
grants
for the plugging, replugging, repairing | 7 | | or restoration
of a well, well site, or an associated tank | 8 | | battery or production facility,
the consideration paid by the | 9 | | Department may include the sale
and assignment of any lien | 10 | | arising under Section 19.5 of this Act.
| 11 | | (j) To dispose in a commercially reasonable manner, at | 12 | | generally
recognized market value, well site equipment, | 13 | | including an associated tank
battery and production facility | 14 | | equipment, and any amount of hydrocarbons from
the well that is | 15 | | stored on the lease, by either or both of the following
methods | 16 | | after it has been determined to be abandoned by the Department | 17 | | through
inclusion of the well in the Oil and Gas Well Site | 18 | | Plugging 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
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| 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 | 11 | | Fund not to exceed $250,000 per fiscal year, subject to | 12 | | appropriation and availability of funds, to the Illinois | 13 | | Petroleum Resources Board, for the sole purpose of implementing | 14 | | the Landowner Grant Program. | 15 | | (Source: P.A. 90-260, eff. 7-30-97.)
| 16 | | Section 10. The Illinois Petroleum Education and Marketing | 17 | | Act is amended by changing Section 15 and by adding Sections 60 | 18 | | and 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 | 22 | | following powers and duties:
| 23 | | (1) To administer and enforce the provisions of this
| 24 | | Act.
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| 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
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| 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.
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| 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 | 7 | | Board has the following specific powers and duties in | 8 | | administering 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 |
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| 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 | 17 | | Department under Section 60 only for the purpose of | 18 | | implementing the Landowner Grant Program. | 19 | | (b) All interest earned on moneys received by the Board | 20 | | under Section 60 shall be property of the Board and shall be | 21 | | used for the sole purpose of implementing the Landowner Grant | 22 | | Program.
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