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SB3113 Enrolled LRB104 19645 BAB 33094 b AN ACT concerning regulation.
*LRB10419645CCC38184a* Rep.
Be it enacted by the People of the State of Illinois, represented in the General Assembly:
Jay Hoffman Filed:
Section 5.
5/26/2026 10400SB3113ham001 LRB104 19645 CCC 38184 a AMENDMENT TO SENATE BILL 3113 AMENDMENT NO.
The Illinois Oil and Gas Act is amended by changing Sections 1, 6, 8a, 8e, 14, and 26 as follows:
______.
Amend Senate Bill 3113 by replacing everything after the enacting clause with the following:
"Section 5.
The Illinois Oil and Gas Act is amended by changing Sections 1, 6, 8a, 8e, 14, and 26 and by adding Section 19.10 as follows:
"Class II fluids" includes:
(1) produced water or other fluids brought to the surface in connection with drilling, completion, workover, and plugging of oil and natural gas wells;
enhanced recovery operations;
or natural gas storage operations;
(2) produced water or other fluids described in item 10400SB3113ham001 -2- LRB104 19645 CCC 38184 a (1) of this definition that, prior to re-injection, have been:
(A) used on site for purposes integrally associated to oil and natural gas well drilling, completion, workover and plugging, oil and gas production, enhanced recovery operations or natural gas storage;
(B) chemically treated or altered to the extent necessary to make them usable for purposes integrally related to oil and natural gas well drilling, completion, workover and plugging, oil and gas production, enhanced recovery operations, or natural gas storage operations;
(C) commingled with fluid wastes resulting from fluid treatments outlined in this item (2) if, the commingled fluid wastes do not constitute a hazardous waste under the Resource Conservation and Recovery Act (42 U.S.C.
6901 et seq.);
(3) fresh water from groundwater or surface water sources that is used for purposes integrally related or associated with oil and natural gas well drilling, completion, workover and plugging, oil and gas production, enhanced recovery operations, or natural gas storage;
waste fluids from gas plants (including filter backwash, precipitated sludge, iron sponge, hydrogen sulfide and scrubber liquid) that are an integral part of oil and gas 10400SB3113ham001 -3- LRB104 19645 CCC 38184 a production operations;
and (4) waste fluids from gas dehydration plants (including glycol-based compounds and filter backwash) that are an integral part of natural gas storage operations, unless the gas plant or gas dehydration plant wastes are classified as hazardous under the Resource Conservation and Recovery Act.
"Fresh water" means surface and subsurface water in its SB3113 Enrolled - 2 - LRB104 19645 BAB 33094 b natural state useful as drinking water for human consumption, domestic livestock, irrigation, industrial, municipal, and recreational purposes, and that will support aquatic life and contains less than 10,000 ppm of total dissolved solids.
"Fresh water" means surface and subsurface water in its natural state useful as drinking water for human consumption, domestic livestock, irrigation, industrial, municipal, and recreational purposes, and that will support aquatic life and contains less than 10,000 ppm of total dissolved solids.
"Person" means any natural person, corporation, association, partnership, governmental agency or other legal entity, receiver, trustee, guardian, executor, administrator, fiduciary or representative of any kind.
"Person" means any natural person, corporation, 10400SB3113ham001 -4- LRB104 19645 CCC 38184 a association, partnership, governmental agency or other legal entity, receiver, trustee, guardian, executor, administrator, fiduciary or representative of any kind.
SB3113 Enrolled - 3 - LRB104 19645 BAB 33094 b "Orphan well" means a well for which:
"Orphan well" means a well for which:
(2) no oil or gas has been produced from the well or from the lease or unit on which the well is located for 2 consecutive years;
(2) no oil or gas has been produced from the well or from the lease or unit on which the well is located for 2 consecutive 10400SB3113ham001 -5- LRB104 19645 CCC 38184 a years;
In the absence of such an agreement, and subject to the provisions of Sections 22.2 and 23.1 through 23.16 of this Act, the owner shall be the person designated in writing by a majority of the persons in interest SB3113 Enrolled - 4 - LRB104 19645 BAB 33094 b holding these rights.
In the absence of such an agreement, and subject to the provisions of Sections 22.2 and 23.1 through 23.16 of this Act, the owner shall be the person designated in writing by a majority of the persons in interest holding these rights.
"Permittee" means the owner holding or required to hold the permit, and who is also responsible for paying assessments in accordance with Section 19.7 of this Act, and, where applicable, executing and filing the bond associated with the well as principal, and who is responsible for compliance with all statutory and regulatory requirements pertaining to the well.
"Permittee" means the owner holding or required to hold 10400SB3113ham001 -6- LRB104 19645 CCC 38184 a the permit, and who is also responsible for paying assessments in accordance with Section 19.7 of this Act, and, where applicable, executing and filing the bond associated with the well as principal, and who is responsible for compliance with all statutory and regulatory requirements pertaining to the well.
"Produced water" means water, regardless of chloride and total dissolved solids content that is produced in conjunction SB3113 Enrolled - 5 - LRB104 19645 BAB 33094 b with oil and natural gas production or natural gas storage operations.
"Produced water" means water, regardless of chloride and total dissolved solids content that is produced in conjunction with oil and natural gas production or natural gas storage operations.
"Vacuum" means pressure that is reduced below the pressure of the atmosphere.
10400SB3113ham001 -7- LRB104 19645 CCC 38184 a "Vacuum" means pressure that is reduced below the pressure of the atmosphere.
SB3113 Enrolled - 6 - LRB104 19645 BAB 33094 b (2) no oil or gas has been produced from the well or from the lease or unit on which the well is located for 2 consecutive years;
(2) no oil or gas has been produced from the well or from the lease or unit on which the well is located for 2 consecutive years;
Orphaned wells include wells that may have been drilled for purposes other than those for which a permit is required under this Act if the well is a conduit for oil or salt water intrusions into fresh water zones or onto the surface which may be caused by oil and gas operations.
Orphaned wells include wells that may have been drilled for purposes other than those for which a 10400SB3113ham001 -8- LRB104 19645 CCC 38184 a permit is required under this Act if the well is a conduit for oil or salt water intrusions into fresh water zones or onto the surface which may be caused by oil and gas operations.
SB3113 Enrolled - 7 - LRB104 19645 BAB 33094 b "Mining Board" means the State Mining Board in the Department of Natural Resources, Office of Mines and Minerals.
"Mining Board" means the State Mining Board in the Department of Natural Resources, Office of Mines and Minerals.
"Mineral Owner's Royalty" means the share of oil and gas production reserved in an oil and gas lease free of all costs by an owner of the minerals whether denominated royalty or overriding royalty.
"Mineral Owner's Royalty" means the share of oil and gas production reserved in an oil and gas lease free of all costs by an owner of the minerals whether denominated royalty or 10400SB3113ham001 -9- LRB104 19645 CCC 38184 a overriding royalty.
(5) the unnecessary or excessive surface loss or destruction of oil or gas resulting from evaporation, seepage, leakage or fire, especially such loss or SB3113 Enrolled - 8 - LRB104 19645 BAB 33094 b destruction incident to or resulting from the escape of gas into the open air in excessive or unreasonable amounts, provided, however, it shall not be unlawful for the operator or owner of any well producing both oil and gas to burn such gas in flares when such gas is, under the other provisions of this Act, lawfully produced, and where there is no market at the well for such escaping gas;
(5) the unnecessary or excessive surface loss or destruction of oil or gas resulting from evaporation, seepage, leakage or fire, especially such loss or destruction incident to or resulting from the escape of gas into the open air in excessive or unreasonable amounts, provided, however, it shall not be unlawful for the operator or owner of any well producing both oil and gas to burn such gas in flares when such gas is, under the 10400SB3113ham001 -10- LRB104 19645 CCC 38184 a other provisions of this Act, lawfully produced, and where there is no market at the well for such escaping gas;
SB3113 Enrolled - 9 - LRB104 19645 BAB 33094 b "Well-Site Equipment" means any production-related equipment or materials specific to the well, including motors, pumps, pump jacks, tanks, tank batteries, separators, compressors, casing, tubing, and rods.
"Well-Site Equipment" means any production-related equipment or materials specific to the well, including motors, pumps, pump jacks, tanks, tank batteries, separators, compressors, casing, tubing, and rods.
"Temporary abandonment status" means a well that has received an authorization for temporary abandonment status from the Department.
"Temporary abandonment status" means a well that has 10400SB3113ham001 -11- LRB104 19645 CCC 38184 a received an authorization for temporary abandonment status from the Department.
(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 SB3113 Enrolled - 10 - LRB104 19645 BAB 33094 b wastes, or for input, withdrawal, or observation in 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 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 10400SB3113ham001 -12- LRB104 19645 CCC 38184 a Department may prescribe and to comply with the provisions of this Section.
(2.5) Additionally, for each applicant who has not been issued a permit that is (i) not of record with the Department on the effective date of this amendatory Act of the 104th General Assembly, or (ii) a permittee on record with the Department but who has failed to make payments of the assessments as required under Section 19.7 of this Act at any time in the preceding 5 years of the application, the permittee or applicant shall execute, as principal, SB3113 Enrolled - 11 - LRB104 19645 BAB 33094 b 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 and shall set at the following rates:
(2.5) Additionally, for each applicant who has not been issued a permit that is (i) not of record with the Department on the effective date of this amendatory Act of the 104th General Assembly, or (ii) a permittee on record with the Department but who has failed to make payments of the assessments as required under Section 19.7 of this Act at any time in the preceding 5 years of the application, the permittee or applicant 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 and shall set at the following rates:
(A) $10,000 for one well;
10400SB3113ham001 -13- LRB104 19645 CCC 38184 a (A) $10,000 for one well;
(ii) all wells covered by the bond are transferred SB3113 Enrolled - 12 - LRB104 19645 BAB 33094 b in accordance with this Act and administrative rules;
(ii) all wells covered by the bond are transferred in accordance with this Act and administrative rules;
or (iii) the permittee pays assessments to the Department in accordance with Section 19.7 of this Act for 5 consecutive years from the date of issuance of a permit after the effective date of this amendatory Act of the 104th General Assembly and the permittee is not in violation of this Act or any administrative rules.
or (iii) the permittee pays assessments to the Department in accordance with Section 19.7 of this Act for 5 consecutive years from the date of issuance of a 10400SB3113ham001 -14- LRB104 19645 CCC 38184 a permit after the effective date of this amendatory Act of the 104th General Assembly and the permittee is not in violation of this Act or any administrative rules.
No permit shall be issued to a corporation SB3113 Enrolled - 13 - LRB104 19645 BAB 33094 b incorporated outside of Illinois until the corporation has been authorized to do business in Illinois.
No permit shall be issued to a corporation incorporated outside of Illinois until the corporation has been authorized to do business in Illinois.
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No permit shall be issued to an individual, partnership, or other unincorporated entity that is not a resident of Illinois until that individual, partnership, or other unincorporated entity has irrevocably consented to be sued in Illinois.
No permit shall be issued to an individual, partnership, or other unincorporated entity that is not a resident of Illinois until that individual, partnership, 10400SB3113ham001 -15- LRB104 19645 CCC 38184 a or other unincorporated entity has irrevocably consented to be sued in Illinois.
and to file a completion report with the Department within 30 days after the date of first production following initial drilling or any SB3113 Enrolled - 14 - LRB104 19645 BAB 33094 b reworking, or after the plugging of the well, if a dry hole.
and to file a completion report with the Department within 30 days after the date of first production following initial drilling or any reworking, or after the plugging of the well, if a dry hole.
The Department and the State Geological Survey shall keep the reports confidential, if requested in writing by the permittee, for 2 years after the date the permit is issued by the Department.
The Department and the State Geological Survey shall keep the reports confidential, if requested in 10400SB3113ham001 -16- LRB104 19645 CCC 38184 a writing by the permittee, for 2 years after the date the permit is issued by the Department.
SB3113 Enrolled - 15 - LRB104 19645 BAB 33094 b (11) To regulate directional drilling of oil or gas wells.
(11) To regulate directional drilling of oil or gas wells.
(13) To require that wells for which no logs or unsatisfactory logs are supplied shall be completely plugged with cement from bottom to top.
(13) To require that wells for which no logs or unsatisfactory logs are supplied shall be completely 10400SB3113ham001 -17- LRB104 19645 CCC 38184 a plugged with cement from bottom to top.
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 SB3113 Enrolled - 16 - LRB104 19645 BAB 33094 b presence of 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 workers in shafts or excavations beneath the surface of the earth.
Rules promulgated by the Department may include minimum qualifications of persons performing tasks affecting the health and safety of workers underground, minimum standards for the operation and maintenance of equipment, and safety procedures and precautions, and shall conform, as nearly as practicable, to corresponding qualifications, standards and procedures prescribed under the Coal Mining Act.
Rules promulgated by the Department may include minimum qualifications of persons performing tasks affecting the health and safety of workers underground, minimum standards for the operation and 10400SB3113ham001 -18- LRB104 19645 CCC 38184 a maintenance of equipment, and safety procedures and precautions, and shall conform, as nearly as practicable, to corresponding qualifications, standards and procedures prescribed under the Coal Mining Act.
For the purposes of this Act, the State Geological Survey SB3113 Enrolled - 17 - LRB104 19645 BAB 33094 b 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 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 10400SB3113ham001 -19- LRB104 19645 CCC 38184 a received or secured by the Department which are pertinent to scientific research on the State's mineral resources.
the action needed to abate the violation, including any appropriate remedial measures to prevent future violation such as replacement, repair, testing and SB3113 Enrolled - 18 - LRB104 19645 BAB 33094 b reworking a well and any appurtenances and equipment;
the action needed to abate the violation, including any appropriate remedial measures to prevent future violation such as replacement, repair, testing and reworking a well and any appurtenances and equipment;
any factors known to the person completing the notice of violation in aggravation or mitigation and the existence of any factors indicating that the permit should be conditioned or modified.
any factors known to the person completing the notice of violation in aggravation or mitigation and the 10400SB3113ham001 -20- LRB104 19645 CCC 38184 a existence of any factors indicating that the permit should be conditioned or modified.
the assessment of civil penalties not to exceed SB3113 Enrolled - 19 - LRB104 19645 BAB 33094 b $5,000 for each and every falsification or misstatement of information and civil penalties not to exceed $4,000 per and $1,000 a day for each and every act of violation not including a falsification or misstatement of information;
the assessment of civil penalties not to exceed $5,000 for each and every falsification or misstatement of information and civil penalties not to exceed $4,000 per and $1,000 a day for each and every act of violation not including a falsification or misstatement of information;
probationary or permanent modification or conditions on the permit which may include special monitoring or reporting requirements;
probationary or permanent modification or 10400SB3113ham001 -21- LRB104 19645 CCC 38184 a conditions on the permit which may include special monitoring or reporting requirements;
SB3113 Enrolled - 20 - LRB104 19645 BAB 33094 b Any person who willfully or knowingly authorized, ordered, or carried out any violation cited in the Director's decision shall be subject to the same actions, including civil penalties, which may be imposed on the person or permittee under this Section.
Any person who willfully or knowingly authorized, ordered, or carried out any violation cited in the Director's decision shall be subject to the same actions, including civil penalties, which may be imposed on the person or permittee under this Section.
Upon receipt of a request, the Department shall provide an opportunity for a formal hearing upon not less than 5 days notice.
10400SB3113ham001 -22- LRB104 19645 CCC 38184 a Upon receipt of a request, the Department shall provide an opportunity for a formal hearing upon not less than 5 days notice.
SB3113 Enrolled - 21 - LRB104 19645 BAB 33094 b Pending the holding of any hearing or entry of a final administrative order under this Section, the person or permittee to whom the cessation order was issued may file a written request for temporary relief subject to the same terms and conditions as are provided for in Section 19.1 of this Act.
Pending the holding of any hearing or entry of a final administrative order under this Section, the person or permittee to whom the cessation order was issued may file a written request for temporary relief subject to the same terms and conditions as are provided for in Section 19.1 of this Act.
If the Department finds that a person or permittee has failed to comply with a final administrative order, the Department may immediately order the cessation of operations or the portions thereof relevant to the final administrative order.
10400SB3113ham001 -23- LRB104 19645 CCC 38184 a If the Department finds that a person or permittee has failed to comply with a final administrative order, the Department may immediately order the cessation of operations or the portions thereof relevant to the final administrative order.
(3) an officer, director, partner, or person with an SB3113 Enrolled - 22 - LRB104 19645 BAB 33094 b interest in the applicant exceeding 5% failed to abate a violation of the Act specified in a final administrative decision of the Department;
(3) an officer, director, partner, or person with an interest in the applicant exceeding 5% failed to abate a violation of the Act specified in a final administrative decision of the Department;
or (4) the applicant is an officer, director, partner, or person with an interest exceeding 5% in another entity that has failed to abate a violation of the Act specified in a final administrative decision of the Department.
or (4) the applicant is an officer, director, partner, or person with an interest exceeding 5% in another entity 10400SB3113ham001 -24- LRB104 19645 CCC 38184 a that has failed to abate a violation of the Act specified in a final administrative decision of the Department.
(b) All annual fees collected pursuant to subsection (a) shall be deposited into the Plugging and Restoration Fund, and one-half of all such deposited fees shall be used solely for the Landowner Grant Program.
(b) All annual fees collected pursuant to subsection (a) shall be deposited as follows:
deposited as follows:
(1) one-half of all such fees shall be deposited into placed in the Plugging and Restoration Fund;
(1) one-half of all such fees shall be placed in the Plugging and Restoration Fund;
and (2) one-half of all such fees so deposited shall be used solely for placed in the Landowner Grant Program.
and (2) one-half of all such fees shall be placed in the Landowner Grant Program.
Each application for a permit to drill, deepen, convert, or amend shall be accompanied by the required fee of SB3113 Enrolled - 23 - LRB104 19645 BAB 33094 b $400.
Each application for a permit to drill, deepen, convert, or amend shall be accompanied by the required fee of $400.
Except for the assessments required to be deposited in the Plugging and Restoration Fund under Section 19.7 of this Act and any other deposits required to be deposited in the Plugging and Restoration Fund under this Act, all fees assessed and collected under this Act shall be deposited in the Underground Resources Conservation Enforcement Fund.
Except for the assessments required to be deposited in the Plugging and Restoration Fund under Section 19.7 of this Act and any other deposits required 10400SB3113ham001 -25- LRB104 19645 CCC 38184 a to be deposited in the Plugging and Restoration Fund under this Act, all fees assessed and collected under this Act shall be deposited in the Underground Resources Conservation Enforcement Fund.
1-1-23.) (225 ILCS 725/26) (from Ch.
1-1-23.) (225 ILCS 725/19.10 new) Sec.
19.10.
Leaking previously plugged well.
(a) If any oil or Class II fluids are potentially leaking into the fresh water zones or to the surface, as determined by geologic and field investigation, through a well plugged under the supervision of the Department, the Department shall notify the last permittee of record for the well when the well was last plugged.
The last permittee shall then undertake the necessary actions to comply with this Section.
If the last permittee no longer exists, cannot be located, does not take the necessary actions, or does not diligently pursue the 10400SB3113ham001 -26- LRB104 19645 CCC 38184 a necessary actions, then the current permittee of the lease where the well is located shall take the necessary actions.
The current permittee, if required to undertake any containment or plugging operations pursuant to this Section, shall have a right of action against the last permittee of record for the well when the well was last plugged for the reasonable cost and expense incurred in plugging, replugging, repairing, or restoring the well and shall have a lien enforceable upon the interest of the obligated persons in accordance with Section 19.5.
Pending plugging of the well, all injection wells within a quarter-mile radius of the leaking well shall be shut in until the leaking well is plugged.
The leaking or previously leaking well shall be plugged, regardless of well status at the time of plugging.
(b) If the current permittee of the lease is required to undertake any containment actions pursuant to this Section and does not take the required actions to contain the leaking fluids within 24 hours after notification by the Department, or within the time frame of any extensions granted by the Department because of extenuating circumstances, such as weather conditions, the current permittee shall not operate any wells on the lease where the leaking well is located until all required actions have been taken and may be issued a notice of violation and assessed a civil penalty in accordance with this Act and administrative rule.
10400SB3113ham001 -27- LRB104 19645 CCC 38184 a (225 ILCS 725/26) (from Ch.
(a) Any person who violates any provision of this Act or any valid rule, regulation, permit or order of the Department made hereunder, or who repeats or continues the violation thereof, shall be subject to a civil penalty not to SB3113 Enrolled - 24 - LRB104 19645 BAB 33094 b exceed:
(a) Any person who violates any provision of this Act or any valid rule, regulation, permit or order of the Department made hereunder, or who repeats or continues the violation thereof, shall be subject to a civil penalty not to exceed:
A permittee may notify the Department if an extraordinary circumstance prevents abatement of a violation for which civil penalties are sought to be assessed against the permittee.
A permittee may notify the Department if an extraordinary circumstance prevents abatement for which civil penalties are sought to be assessed against the permittee.
If the permittee notifies the Department, the permittee shall then provide evidence of the extraordinary circumstance to the Department, as set forth by rule.
If the permittee notifies the Department, the permittee shall then provide evidence of the extraordinary circumstance to the Department when such extraordinary circumstance has terminated.
The assessment of a civil penalty shall not begin until the extraordinary circumstance terminates, as set forth by rule.
The assessment of a civil penalty shall not begin until the 10400SB3113ham001 -28- LRB104 19645 CCC 38184 a extraordinary circumstance terminates.
The process to declare an extraordinary circumstance, the Department's review and approval of the extraordinary circumstance, and any appeal of the Department's determination shall be set by rule.
An extraordinary circumstance shall include, but not be limited to, roads being posted, wet field conditions, or flooding that prevents the movement of equipment for the abatement.
An extraordinary circumstance shall include, but not be limited SB3113 Enrolled - 25 - LRB104 19645 BAB 33094 b to, roads being posted with a weight limit that prevents the movement of equipment, wet field conditions that prevent mitigation activities, or flooding that prevents the movement of equipment for the abatement.
85-1334.)
85-1334.)".