Illinois 99th Regular Session Status: Passed Senate 1 R cosponsors

SB 1562 — OIL AND GAS LEASE REQUIREMENTS

Last action — Session Sine Die

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  1. ✓
    Introduced
  2. ✓
    In Committee
  3. 3
    Passed Senate
  4. 4
    Passed House
  5. 5
    To Executive
  6. 6
    Enacted

This bill died with 99th Regular Session. It reached “Passed Senate” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.

This bill is no longer active — its legislative session has ended, so there is no live prognosis. It would have to be reintroduced in the current session to move again.

Summary

Amends the Illinois Oil and Gas Act. Establishes the criteria that the Department of Natural Resources may consider when making a determination that the oil and gas leases submitted with an application for a permit or transfer of a permit for a well are operative and that prior oil and gas leases covering the same lands have terminated due to non-development or non-production under the current permittee. Provides that the Department may rely upon affidavits of non-development and non-production from individuals familiar with the history of development and production of such lands in addition to other evidence. Requires that such testimony and evidence create a rebuttable presumption that there has been no development or production of oil or gas on the lands described in the prior leases for at least 24 consecutive months subsequent to the expiration of the primary term or any extension of the primary term as set forth in the leases. Further provides that a court order or judgment declaring the prior leases terminated is not required, except in extraordinary circumstances where such a determination cannot reasonably be concluded from the testimony and evidence submitted to the Department. Provides that, upon the Department's determination of a rebuttable presumption, the Department shall provide the current permittee with notice and a 30-day opportunity to request a hearing to rebut the presumption before a final determination on a lease is made. Further provides that, upon the Department's determination of a rebuttable presumption, if the applicant is not requesting a transfer of any existing permit, but is requesting a new permit, the permit shall be issued to the applicant. Provides that any determination made by the Department shall not diminish the rights or obligations of any current permittee of a well that are otherwise provided by statute or regulation of the Department. Further provides that any request for a determination by the Department or any subsequent hearing requires the payment of a nonrefundable fee of $1000. Requires that the Department make a determination on a lease no later than 90 days after the Department's receipt of a valid request for a determination. Effective immediately.

Bill Text

What changed in the latest version

10 added · 52 removed

Plain-language change summary

The legislative amendment to Bill SB 1562 makes several important changes regarding oil and gas leases in Illinois. It adds new criteria for the Department of Natural Resources to determine whether a lease is active or has expired due to lack of development or production. Importantly, it allows the Department to use affidavits from knowledgeable individuals as evidence, rather than requiring a court's decision to declare leases terminated, except in rare cases. This simplifies the process for managing leases and could expedite permitting for new developments, which is crucial for advancing energy projects.

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*LRB09906087MLM26142b* SB1562 99TH GENERAL ASSEMBLY State of Illinois and 2016 SB1562 Introduced 2/20/2015, by Sen.
SB1562 Engrossed LRB099 06087 MLM 26142 b AN ACT concerning regulation.
William E.
Brady SYNOPSIS AS INTRODUCED:
ILCS 725/6 from Ch.
96 1/2, par.
5409 Amends the Illinois Oil and Gas Act.
Establishes the criteria that the Department of Natural Resources may consider when making a determination that the oil and gas leases submitted with an application for a permit or transfer of a permit for a well are operative and that prior oil and gas leases covering the same lands have terminated due to non-development or non-production under the current permittee.
Provides that the Department may rely upon affidavits of non-development and non-production from individuals familiar with the history of development and production of such lands in addition to other evidence.
Requires that such testimony and evidence create a rebuttable presumption that there has been no development or production of oil or gas on the lands described in the prior leases for at least 24 consecutive months subsequent to the expiration of the primary term or any extension of the primary term as set forth in the leases.
Further provides that a court order or judgment declaring the prior leases terminated is not required, except in extraordinary circumstances where such a determination cannot reasonably be concluded from the testimony and evidence submitted to the Department.
Provides that, upon the Department's determination of a rebuttable presumption, the Department shall provide the current permittee with notice and a 30-day opportunity to request a hearing to rebut the presumption before a final determination on a lease is made.
Further provides that, upon the Department's determination of a rebuttable presumption, if the applicant is not requesting a transfer of any existing permit, but is requesting a new permit, the permit shall be issued to the applicant.
Provides that any determination made by the Department shall not diminish the rights or obligations of any current permittee of a well that are otherwise provided by statute or regulation of the Department.
Further provides that any request for a determination by the Department or any subsequent hearing requires the payment of a nonrefundable fee of $1000.
Requires that the Department make a determination on a lease no later than days after the Department's receipt of a valid request for a determination.
Effective immediately.
LRB099 06087 MLM 26142 b A BILL FOR SB1562 LRB099 06087 MLM 26142 b AN ACT concerning regulation.
(2) To require the person desiring or proposing to drill, deepen or convert any well for the exploration or production of oil or gas, for injection or water supply in connection with enhanced recovery projects, for the disposal of salt water, brine, or other oil or gas field wastes, or for input, withdrawal, or observation in SB1562 - 2 - LRB099 06087 MLM 26142 b connection with the storage of natural gas or other liquid or gaseous hydrocarbons before commencing the drilling, deepening or conversion of any such well, to make application to the Department upon such form as the Department may prescribe and to comply with the provisions of this Section.
(2) To require the person desiring or proposing to drill, deepen or convert any well for the exploration or production of oil or gas, for injection or water supply in connection with enhanced recovery projects, for the disposal of salt water, brine, or other oil or gas field wastes, or for input, withdrawal, or observation in SB1562 Engrossed - 2 - LRB099 06087 MLM 26142 b connection with the storage of natural gas or other liquid or gaseous hydrocarbons before commencing the drilling, deepening or conversion of any such well, to make application to the Department upon such form as the Department may prescribe and to comply with the provisions of this Section.
Additionally, each applicant who has not been issued a permit that is of record on the effective date of this amendatory Act of 1991, or who has not thereafter made payments of assessments under Section 19.7 of this Act for at least 2 consecutive years preceding the application, shall execute, as principal, and file with the Department a bond, executed by a surety authorized to transact business in this State, in an amount estimated to cover the cost of plugging the well and restoring the well site, but not to SB1562 - 3 - LRB099 06087 MLM 26142 b exceed $5000, as determined by the Department for each well, or a blanket bond in an amount not to exceed $100,000 for all wells, before drilling, deepening, converting, or operating any well for which a permit is required that has not previously been plugged and abandoned in accordance with the Act.
Additionally, each applicant who has not been issued a permit that is of record on the effective date of this amendatory Act of 1991, or who has not thereafter made payments of assessments under Section 19.7 of this Act for at least 2 consecutive years preceding the application, shall execute, as principal, and file with the Department a bond, executed by a surety authorized to transact business in this State, in an amount estimated to cover the cost of plugging the well and restoring the well site, but not to SB1562 Engrossed - 3 - LRB099 06087 MLM 26142 b exceed $5000, as determined by the Department for each well, or a blanket bond in an amount not to exceed $100,000 for all wells, before drilling, deepening, converting, or operating any well for which a permit is required that has not previously been plugged and abandoned in accordance with the Act.
The principal on each bond in effect on the effective date of this amendatory Act of 1991 shall be released from the obligation of maintaining the bond if either the well covered by a surety bond has been plugged and the well site restored in accordance with the Department's rules or the principal of the surety has paid the initial assessment in SB1562 - 4 - LRB099 06087 MLM 26142 b accordance with Section 19.7 and no well or well site covered by the surety bond is in violation of the Act.
The principal on each bond in effect on the effective date of this amendatory Act of 1991 shall be released from the obligation of maintaining the bond if either the well covered by a surety bond has been plugged and the well site restored in accordance with the Department's rules or the principal of the surety has paid the initial assessment in SB1562 Engrossed - 4 - LRB099 06087 MLM 26142 b accordance with Section 19.7 and no well or well site covered by the surety bond is in violation of the Act.
(4) To require the filing with the State Geological Survey of all geophysical logs, a well drilling report and drill cuttings or cores, if cores are required, within 90 SB1562 - 5 - LRB099 06087 MLM 26142 b days after drilling ceases;
(4) To require the filing with the State Geological Survey of all geophysical logs, a well drilling report and drill cuttings or cores, if cores are required, within 90 SB1562 Engrossed - 5 - LRB099 06087 MLM 26142 b days after drilling ceases;
(10) To regulate the spacing of wells, the issuance of SB1562 - 6 - LRB099 06087 MLM 26142 b permits, and the establishment of drilling units.
(10) To regulate the spacing of wells, the issuance of SB1562 Engrossed - 6 - LRB099 06087 MLM 26142 b permits, and the establishment of drilling units.
For the purposes of this paragraph, oil and gas operations include drilling or excavation, production operations, plugging or filling in and sealing, or any other work requiring the presence of SB1562 - 7 - LRB099 06087 MLM 26142 b workers in shafts or excavations beneath the surface of the earth.
For the purposes of this paragraph, oil and gas operations include drilling or excavation, production operations, plugging or filling in and sealing, or any other work requiring the presence of SB1562 Engrossed - 7 - LRB099 06087 MLM 26142 b workers in shafts or excavations beneath the surface of the earth.
(20) To determine if oil and gas leases submitted with an application for a permit or transfer of a permit for a SB1562 - 8 - LRB099 06087 MLM 26142 b well are operative on the basis that prior oil and gas leases covering the same lands have terminated due to non-development or non-production.
(20) To determine if oil and gas leases submitted with an application for a permit or transfer of a permit for a SB1562 Engrossed - 8 - LRB099 06087 MLM 26142 b well are operative on the basis that prior oil and gas leases covering the same lands have terminated due to non-development or non-production.
SB1562 - 9 - LRB099 06087 MLM 26142 b Upon the Department's determination of a rebuttable presumption under this paragraph, the Department shall provide the current permittee with notice and a 30-day opportunity to request a hearing to rebut the presumption before a final determination on a lease is made.
SB1562 Engrossed - 9 - LRB099 06087 MLM 26142 b Upon the Department's determination of a rebuttable presumption under this paragraph, the Department shall provide the current permittee with notice and a 30-day opportunity to request a hearing to rebut the presumption before a final determination on a lease is made.
For the purposes of this Act, the State Geological Survey shall co-operate with the Department in making available its scientific and technical information on the oil and gas resources of the State, and the Department shall in turn furnish a copy to the State Geological Survey of all drilling permits as issued, and such other drilling and operating data received or secured by the Department which are pertinent to SB1562 - 10 - LRB099 06087 MLM 26142 b scientific research on the State's mineral resources.
For the purposes of this Act, the State Geological Survey shall co-operate with the Department in making available its scientific and technical information on the oil and gas resources of the State, and the Department shall in turn furnish a copy to the State Geological Survey of all drilling permits as issued, and such other drilling and operating data received or secured by the Department which are pertinent to SB1562 Engrossed - 10 - LRB099 06087 MLM 26142 b scientific research on the State's mineral resources.
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Action History

  1. Session Sine Die

  2. Rule 19(a) / Re-referred to Rules Committee

  3. Held on Calendar Order of Second Reading - Short Debate

  4. Recalled to Second Reading - Short Debate

  5. Final Action Deadline Extended-9(b) April 28, 2016

  6. Final Action Deadline Extended-9(b) January 29, 2016

  7. House Floor Amendment No. 2 Recommends Be Adopted Rules Committee; 003-000-000

  8. House Floor Amendment No. 2 Referred to Rules Committee

  9. House Floor Amendment No. 2 Filed with Clerk by Rep. Frank J. Mautino

  10. Added as Chief Co-Sponsor Sen. William E. Brady

  11. Chief Sponsor Changed to Sen. Sue Rezin

  12. Final Action Deadline Extended-9(b) December 4, 2015

  13. Final Action Deadline Extended-9(b) October 31, 2015

  14. Final Action Deadline Extended-9(b) September 30, 2015

  15. Final Action Deadline Extended-9(b) August 31, 2015

  16. Final Action Deadline Extended-9(b) July 31, 2015

  17. Final Action Deadline Extended-9(b) June 30, 2015

  18. Placed on Calendar Order of 3rd Reading - Short Debate

  19. Held on Calendar Order of Second Reading - Short Debate

  20. Second Reading - Short Debate

  21. Placed on Calendar 2nd Reading - Short Debate

  22. Do Pass as Amended / Short Debate Executive Committee; 007-004-000

  23. House Committee Amendment No. 1 Adopted in Executive Committee; by Voice Vote

  24. House Committee Amendment No. 1 Rules Refers to Executive Committee

  25. House Committee Amendment No. 1 Referred to Rules Committee

  26. House Committee Amendment No. 1 Filed with Clerk by Rep. Michael J. Madigan

  27. Added Alternate Chief Co-Sponsor Rep. Frank J. Mautino

  28. Final Action Deadline Extended-9(b) May 31, 2015

  29. Assigned to Executive Committee

  30. Final Action Deadline Extended-9(b) May 29, 2015

  31. Referred to Rules Committee

  32. First Reading

  33. Chief House Sponsor Rep. John Bradley

  34. Arrived in House

  35. Third Reading - Passed; 056-000-000

  36. Placed on Calendar Order of 3rd Reading April 22, 2015

  37. Second Reading

  38. Placed on Calendar Order of 2nd Reading April 14, 2015

  39. Do Pass Environment and Conservation; 009-000-000

  40. Postponed - Environment and Conservation

  41. Postponed - Environment and Conservation

  42. Assigned to Environment and Conservation

  43. Referred to Assignments

  44. First Reading

  45. Filed with Secretary by Sen. William E. Brady

Sponsors

Sponsorship breakdown

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0 sponsors · 1 co-sponsors · 182 not signed on

Sponsors (0)

None.

Co-sponsors (1)

Not signed on (182)

182 members have not signed on to this bill.

Show all 182 →

"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Votes

Third Reading

Passed 56 Yea · 0 Nay · 3 Other
Party YeaNayPresentNot Voting
Unaffiliated 40002
Democrat 12001
Republican 4000
Total 56003
% of votes cast 95%0%0%5%
How each member voted (59)
Member Party Vote
Sandoval — Not Voting
Silverstein — Not Voting
Althoff — Yea
Martinez — Yea
Barickman — Yea
Bertino-Tarrant — Yea
Biss — Yea
Bivins — Yea
Link — Yea
Luechtefeld — Yea
Duffy — Yea
Kotowski — Yea
LaHood — Yea
Landek — Yea
Bennett — Yea
Harris — Yea
Manar — Yea
McCann — Yea
McCarter — Yea
McConnaughay — Yea
Mulroe — Yea
McGuire — Yea
Muñoz — Yea
Brady — Yea
Oberweis — Yea
Sullivan — Yea
Cullerton, T. — Yea
Cullerton — Yea
Steans — Yea
Trotter — Yea
Bush — Yea
Clayborne — Yea
Connelly — Yea
Forby — Yea
Haine — Yea
Hutchinson — Yea
Noland — Yea
Nybo — Yea
Radogno — Yea
Raoul — Yea
Righter — Yea
Van Pelt — Yea
Bill Cunningham Democrat Yea
David Koehler Democrat Yea
Don Harmon Democrat Yea
Emil Jones, III Democrat Yea
Eva-Dina Delgado Democrat Yea
Julie A. Morrison Democrat Yea
Kimberly A. Lightford Democrat Yea
Lakesia Collins Democrat Yea
Laura M. Murphy Democrat Not Voting
Linda Holmes Democrat Yea
Mattie Hunter Democrat Yea
Michael E. Hastings Democrat Yea
Steve Stadelman Democrat Yea
Chapin Rose Republican Yea
Dave Syverson Republican Yea
Neil Anderson Republican Yea
Sue Rezin Republican Yea

Official roll call →

Subjects

environment energy
Cross-referencing the record. Reading this bill against every other bill in the corpus by meaning, not keywords. Only the first open is slow. It’s instant for you after this. Matching · Ranking · Engrossing

Frequently asked questions

What does SB 1562 do?
Amends the Illinois Oil and Gas Act. Establishes the criteria that the Department of Natural Resources may consider when making a determination that the oil and gas leases submitted with an application for a permit or transfer of a permit for a well are operative and that prior oil and gas leases covering the same lands have terminated due to non-development or non-production under the current permittee. Provides that the Department may rely upon affidavits of non-development and non-production from individuals familiar with the history of development and production of such lands in addition to other evidence. Requires that such testimony and evidence create a rebuttable presumption that there has been no development or production of oil or gas on the lands described in the prior leases for at least 24 consecutive months subsequent to the expiration of the primary term or any extension of the primary term as set forth in the leases. Further provides that a court order or judgment declaring the prior leases terminated is not required, except in extraordinary circumstances where such a determination cannot reasonably be concluded from the testimony and evidence submitted to the Department. Provides that, upon the Department's determination of a rebuttable presumption, the Department shall provide the current permittee with notice and a 30-day opportunity to request a hearing to rebut the presumption before a final determination on a lease is made. Further provides that, upon the Department's determination of a rebuttable presumption, if the applicant is not requesting a transfer of any existing permit, but is requesting a new permit, the permit shall be issued to the applicant. Provides that any determination made by the Department shall not diminish the rights or obligations of any current permittee of a well that are otherwise provided by statute or regulation of the Department. Further provides that any request for a determination by the Department or any subsequent hearing requires the payment of a nonrefundable fee of $1000. Requires that the Department make a determination on a lease no later than 90 days after the Department's receipt of a valid request for a determination. Effective immediately.
Who sponsors SB 1562?
SB 1562 is sponsored by Sue Rezin (Republican).
What is the current status of SB 1562?
This bill died with 99th Regular Session. It reached “Passed Senate” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.
Where can I track SB 1562?
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