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90_HB0771
225 ILCS 725/19.6 from Ch. 96 1/2, par. 5430.1
Amends the Illinois Oil and Gas Act to provide that the
Department of Natural Resources has the authority to
administer the Landowner Grant Program. Allows the Department
to expend funds in the Plugging and Restoration Fund for the
removal of well site equipment and associated tank batteries
and production facilities when the landowners are not legally
responsible for the removal. Provides for the proper disposal
of well site equipment, including an associated tank battery,
production facility equipment, and hydrocarbons. Effective
July 1, 1997.
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1 AN ACT to amend the Illinois Oil and Gas Act by changing
2 Section 19.6.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Illinois Oil and Gas Act is amended by
6 changing Section 19.6 as follows:
7 (225 ILCS 725/19.6) (from Ch. 96 1/2, par. 5430.1)
8 Sec. 19.6. The Department has the following specific
9 powers and duties in administering the Oil and Gas Well Site
10 Plugging and Restoration Program, Landowner Grant Program,
11 and the Plugging and Restoration Fund:
12 (a) To adopt rules in conformity with this Act,
13 including rules establishing priorities for well site
14 plugging, repair, and restoration consistent with this Act.
15 (b) To adopt any transitional rules necessary to
16 implement the Oil and Gas Well Site Plugging and Restoration
17 Program and Landowner Grant Program.
18 (c) To collect the fees assessed by the Department under
19 this Act and to make deposits into the Plugging and
20 Restoration Fund.
21 (d) To deposit the amount of any forfeited surety bond
22 or other security in the Plugging and Restoration Fund.
23 (e) To recover well site plugging, repair, and
24 restoration costs from permittees who fail to reimburse the
25 Plugging and Restoration Fund for expenses attributable to
26 those permittees and to deposit any amounts reimbursed or
27 collected into the Plugging and Restoration Fund.
28 (f) To accept, receive, and deposit into the Plugging
29 and Restoration Fund any grants, gifts, or other funds that
30 may be made available from public or private sources.
31 (g) To make expenditures of amounts appropriated from
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1 the Plugging and Restoration Fund, as it may deem appropriate
2 in its sole discretion, for the sole purposes of plugging,
3 replugging, or repairing any well, and restoring the site of
4 any well, including but not limited to removal of well site
5 equipment or production facilities, and for reimbursement to
6 landowners for plugging a well and restoring the site of a
7 well, including but not limited to removal of well site
8 equipment located on the landowner's property, for which the
9 landowner has no legal obligation to plug the wells or remove
10 the well site equipment, if the well is determined by the
11 Department to be abandoned or ordered by the Department to be
12 plugged, replugged, repaired, or restored under Section 8a,
13 19, 19.1, or 19.8 of this Act including the costs of
14 administering the Oil and Gas Well Site Plugging and
15 Restoration Program, and the Plugging and Restoration Fund,
16 and the Landowner Grant Program.
17 (h) To sell or assign any lien arising under Section
18 19.5 of this Act to the highest and best bidder who may agree
19 to become the permittee and as the permittee agree to perform
20 the necessary plugging or corrective work as prescribed by
21 the Department and to deposit the proceeds of such sale in
22 the Plugging and Restoration Fund or to offset Department
23 plugging costs.
24 (i) To enter into contracts in accordance with the
25 Illinois Purchasing Act and to administer the Landowner Grant
26 Program. In contracts or grants for the plugging, replugging,
27 repairing or restoration of a well, well site, or an
28 associated tank battery or production facility, the
29 consideration paid by the Department may include the sale and
30 assignment of any lien arising under Section 19.5 of this
31 Act.
32 (j) To dispose in a commercially reasonable manner, at
33 generally recognized market value, well site equipment,
34 including an associated tank battery and production facility
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1 equipment, and any amount of hydrocarbons from the well that
2 is stored on the lease, by either or both of the following
3 methods after it has been determined to be abandoned by the
4 Department through inclusion of the well in the Oil and Gas
5 Well Site Plugging and Restoration Program:
6 (1) a plugging contract may provide that the person
7 plugging the well or remediating oilfield waste
8 pollution, or both, will have clear title, subject to any
9 perfected, prior legal or equitable claim, on all well
10 site equipment and hydrocarbons from the well that are
11 stored on the lease, or hydrocarbons recovered during the
12 plugging operation in exchange for a sum of money
13 deducted as a credit from the contract price; or
14 (2) the well site equipment, including but not
15 limited to an associated tank battery and production
16 facility equipment, hydrocarbons from the well that are
17 stored on the lease, and hydrocarbons recovered during
18 the plugging operation may be sold at a public auction or
19 a public or private sale. All well site equipment and
20 hydrocarbons acquired by a person by sale shall be
21 acquired under clear title, subject to any perfected
22 prior legal or equitable claims.
23 (Source: P.A. 87-744.)
24 Section 99. Effective date. This Act takes effect July
25 1, 1997.