SB3571 98TH GENERAL ASSEMBLY

LRB098 20148 ZMM 55464 b

98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
SB3571

Introduced 2/14/2014, by Sen. William R. Haine

SYNOPSIS AS INTRODUCED:

765 ILCS 530/2	from Ch. 96 1/2, par. 9652
765 ILCS 530/3	from Ch. 96 1/2, par. 9653
765 ILCS 530/8 new

Amends the Drilling Operations Act. Defines "Department" and "oil country tubular goods". Provides that the operator of each oil or gas well shall annually file with the Department a disclosure form that identifies the country of origin for each country tubular good that is initially used in a production operation. Further provides that the Department, in consultation with representatives from the natural gas, oil, and steel industries, shall by rule provide for the content of the disclosure form as well as the manner in which it shall be filed. Provides that the information collected from the disclosure forms shall be used by the Department to establish a quality oil and gas infrastructure catalog for the State and that the reporting requirements shall apply to each oil or gas well for which an operator holds a permit. Effective immediately.

A BILL FOR

AN ACT concerning civil law.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Drilling Operations Act is amended by changing Sections 2 and 3 and by adding Section 8 as follows:

(765 ILCS 530/2) (from Ch. 96 1/2, par. 9652)

Sec. 2. As used in this Act:

(a) "Person" means any natural person, corporation, firm, partnership, venture, receiver, trustee, executor, administrator, guardian, fiduciary or other representative of any kind and includes any government or any political subdivision or agency thereof;

(b) "Drilling operations" means the drilling, deepening or conversion of a well for oil or gas production, core hole or drill hole for a stratigraphic test;

(c) "Entry" means the moving upon the surface of land with equipment to commence drilling operations, but shall not include entry for the survey for or ascertaining or identification of a well location;

(d) "Operator" means the person, whether the owner or not, who applies for or holds a permit for drilling operations or who is named as the principal on a bond for a permit for a well that was issued by the Department of Natural Resources;

(e) "Surface owner" means the person in whose name the surface of the land on which drilling operations are contemplated, and who is assessed for purposes of taxes imposed pursuant to the Property Tax Code according to the records of the assessor of the county where the land is located as certified by said assessor;

(f) "Assessor" means the supervisor of assessments, board of assessors, or county assessor, as the case may be, for the county in which the land is located;

(g) "Production operation" means the operation of a well for the production of oil, gas, and coalbed methane, including all acts, structures, equipment, and roadways necessary for such operation;

(h) "New well" means a well that is spudded after the effective date of this Act and does not utilize any part of a well bore or drilling location that existed prior to the effective date of this Act;

(i) "Completion of the well" means completion of those processes necessary before production occurs, including the laying of flow lines and the construction of the tank battery. If the well is not productive, the date of completion of the well is the day it is plugged and abandoned.

(j) "Department" means the Department of Natural Resources.

(k) "Oil country tubular goods" means seamless or welded steel pipes that are used in drilling operations and production operations for oil or natural gas, including, but not limited to, casing, tubing, and drill pipe, whether finished or unfinished, as well as couplings, drill collars, and other fittings used with the pipes.

(Source: P.A. 95-830, eff. 8-14-08.)

(765 ILCS 530/3) (from Ch. 96 1/2, par. 9653)

Sec. 3. Except as otherwise provided in paragraph (c) of Section 6 and in Section 8, this This Act shall be applicable only for the drilling operations of new wells except as explicitly provided in paragraph (c) of Section 6. It shall not apply for reworking operations on a well.

This Act shall be applicable only when the surface owner has not consented in writing to the drilling operations and:

(A) there has been a complete severance of the ownership of the oil, gas, and coalbed methane from the ownership of the surface, or

(B) where the surface owner owns an interest in the oil, gas, and coalbed methane, which interest is the subject of either:

(1) An integration proceeding brought pursuant to "An Act in relation to oil, gas, coal, and other surface and underground resources and to repeal an Act herein named", approved July 24, 1945, as amended, or

(2) A proceeding brought pursuant to "An Act in relation to oil and gas interest in land", approved July 1, 1939, as amended.

(Source: P.A. 95-830, eff. 8-14-08.)

(765 ILCS 530/8 new)

Sec. 8. Country of origin disclosure.

(a) The operator of each oil or gas well shall file with the Department the disclosure form required under this Section, identifying the country of origin, unless that country cannot be determined, for each oil country tubular good that is initially used in a production operation on or after the effective date of this amendatory Act of the 98th General Assembly. The operator shall file the disclosure form annually.

(b) In consultation with representatives from the natural gas, oil, and steel industries, the Department shall by rule provide for a disclosure form, together with the annual date by which the form must be filed, the information required to be provided on the form, and the manner of filing with the Department.

(c) The information collected from the disclosure forms shall be used by the Department to establish a quality oil and gas infrastructure catalog for the State.

(d) The reporting requirements of this Section shall apply to each oil or gas well for which the operator holds a permit.

Section 99. Effective date. This Act takes effect upon becoming law.