SB 3113

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Full Text of SB3113
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	SB3113 - 104th General Assembly
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		SB3113 Enrolled		LRB104 19645 BAB 33094 b
1    AN ACT concerning regulation.
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4    Section 5. The Illinois Oil and Gas Act is amended by
5changing Sections 1, 6, 8a, 8e, 14, and 26 as follows:
6    (225 ILCS 725/1)  (from Ch. 96 1/2, par. 5401)
7    Sec. 1. Unless the context otherwise requires, the words
8defined in this Section have the following meanings as used in
9this Act.
10    "Department" means the Department of Natural Resources.
11    "Director" means the Director of Natural Resources.
12    "Drilling unit" means the surface area allocated by an 
13order or rule of the Department to the drilling of a single 
14well for the production of oil or gas from an individual pool.
15    "Enhanced recovery method" means any method used in an 
16effort to recover hydrocarbons from a pool by the injection of 
17fluids, gases, or other substances to maintain, restore, or 
18augment natural reservoir energy, or by introducing immiscible 
19or miscible gases, chemicals, or other substances, or heat, or 
20by in-situ combustion, or by any combination thereof.
21    "Field" means the same general surface area that is 
22underlaid or appears to be underlaid by one or more pools.
23    "Fresh water" means surface and subsurface water in its 
		SB3113 Enrolled	- 2 -	LRB104 19645 BAB 33094 b
1natural state useful as drinking water for human consumption, 
2domestic livestock, irrigation, industrial, municipal, and 
3recreational purposes, and that will support aquatic life and 
4contains less than 10,000 ppm of total dissolved solids.
5    ["Person" means any natural person, corporation, ]
6[association, partnership, governmental agency or other legal ]
7[entity, receiver, trustee, guardian, executor, administrator, ]
8[fiduciary or representative of any kind.]
9    ["Oil" means natural crude oil or petroleum and other ]
10[hydrocarbons, regardless of gravity, which are produced at the ]
11[well in liquid form by ordinary production methods or by the ]
12[use of an oil and gas separator and which are not the result of ]
13[condensation of gas after it leaves the underground reservoir.]
14    "Gas" means all natural gas, including casinghead gas, and
15all other natural hydrocarbons not defined above as oil.
16    "Mineral owner's royalty" means the share of oil and gas 
17production reserved in an oil and gas lease, free of all costs 
18by an owner of the minerals, whether denominated royalty or 
19overriding royalty.
20    "Mining Board" means the State Mining Board in the 
21Department of Natural Resources Office of Mines and Minerals.
22    "Oil" means natural crude oil or petroleum and other 
23hydrocarbons, regardless of gravity, which are produced at the 
24well in liquid form by ordinary production methods or by the 
25use of an oil and gas separator, which are not the result of 
26condensation of gas after it leaves the underground reservoir.
		SB3113 Enrolled	- 3 -	LRB104 19645 BAB 33094 b
1    "Orphan well" means a well for which: (1) no fee 
2assessment under Section 19.7 of this Act has been paid or no 
3other bond coverage has been provided for 2 consecutive years; 
4(2) no oil or gas has been produced from the well or from the 
5lease or unit on which the well is located for 2 consecutive 
6years; and (3) no permittee or owner can be identified or 
7located by the Department. "Orphan well" includes a well that 
8has been drilled for purposes other than those for which a 
9permit is required under this Act if the well is a conduit for 
10oil or salt water intrusions into fresh water zones or onto the 
11surface, which may be caused by oil and gas operations.
12    "Owner" means the person who has the right to drill into 
13and produce from any pool and to appropriate the production 
14either for the person or for the person and another, others, or 
15solely for others, excluding the mineral owner's royalty, if 
16the right to drill and produce has been granted under an oil 
17and gas lease. "Owner" includes a person granted the right to 
18drill and operate an injection (Class II UIC) well independent 
19of the right to drill for and produce oil or gas. When the 
20right to drill, produce, and appropriate production is held by 
21more than one person, then all persons holding these rights 
22may designate the owner by a written operating agreement or 
23similar written agreement. In the absence of such an 
24agreement, and subject to the provisions of Sections 22.2 and 
2523.1 through 23.16 of this Act, the owner shall be the person 
26designated in writing by a majority of the persons in interest 
		SB3113 Enrolled	- 4 -	LRB104 19645 BAB 33094 b
1holding these rights.
2    "Permit" means the Department's written authorization 
3allowing a well to be drilled, deepened, converted, or 
4operated by an owner.
5    "Permittee" means the owner holding or required to hold 
6the permit, and who is also responsible for paying assessments 
7in accordance with Section 19.7 of this Act, and, where 
8applicable, executing and filing the bond associated with the 
9well as principal, and who is responsible for compliance with 
10all statutory and regulatory requirements pertaining to the 
11well.
12    When the right and responsibility for operating a well is 
13vested in a receiver or trustee appointed by a court of 
14competent jurisdiction, the permit shall be issued to the 
15receiver or trustee.
16    "Person" means any natural person, corporation, 
17association, partnership, governmental agency, including any 
18other legal entity, receiver, trustee, guardian, executor, 
19administrator, fiduciary, or representative of any kind.
20    "Pool" means a natural, underground reservoir containing
21in whole or in part, a natural accumulation of oil or gas, or
22both. Each productive zone or stratum of a general structure,
23which is completely separated from any other zone or stratum
24in the structure, is deemed a separate "pool" as used herein.
25    "Produced water" means water, regardless of chloride and 
26total dissolved solids content that is produced in conjunction 
		SB3113 Enrolled	- 5 -	LRB104 19645 BAB 33094 b
1with oil and natural gas production or natural gas storage 
2operations.
3    "Temporary abandonment status" means a well that has 
4received an authorization for temporary abandonment status 
5from the Department.
6    "Vacuum" means pressure that is reduced below the pressure 
7of the atmosphere.
8    ["Field" means the same general surface area which is ]
9[underlaid or appears to be underlaid by one or more pools.]
10    ["Permit" means the Department's written authorization ]
11[allowing a well to be drilled, deepened, converted, or ]
12[operated by an owner.]
13    ["Permittee" means the owner holding or required to hold ]
14[the permit, and who is also responsible for paying assessments ]
15[in accordance with Section 19.7 of this Act and, where ]
16[applicable, executing and filing the bond associated with the ]
17[well as principal and who is responsible for compliance with ]
18[all statutory and regulatory requirements pertaining to the ]
19[well.]
20    [When the right and responsibility for operating a well is ]
21[vested in a receiver or trustee appointed by a court of ]
22[competent jurisdiction, the permit shall be issued to the ]
23[receiver or trustee.]
24    ["Orphan Well" means a well for which: (1) no fee ]
25[assessment under Section 19.7 of this Act has been paid or no ]
26[other bond coverage has been provided for 2 consecutive years; ]
		SB3113 Enrolled	- 6 -	LRB104 19645 BAB 33094 b
1[(2) no oil or gas has been produced from the well or from the ]
2[lease or unit on which the well is located for 2 consecutive ]
3[years; and (3) no permittee or owner can be identified or ]
4[located by the Department. Orphaned wells include wells that ]
5[may have been drilled for purposes other than those for which a ]
6[permit is required under this Act if the well is a conduit for ]
7[oil or salt water intrusions into fresh water zones or onto the ]
8[surface which may be caused by oil and gas operations.]
9    ["Owner" means the person who has the right to drill into ]
10[and produce from any pool, and to appropriate the production ]
11[either for the person or for the person and another, or others, ]
12[or solely for others, excluding the mineral owner's royalty if ]
13[the right to drill and produce has been granted under an oil ]
14[and gas lease. An owner may also be a person granted the right ]
15[to drill and operate an injection (Class II UIC) well ]
16[independent of the right to drill for and produce oil or gas. ]
17[When the right to drill, produce, and appropriate production ]
18[is held by more than one person, then all persons holding these ]
19[rights may designate the owner by a written operating ]
20[agreement or similar written agreement. In the absence of such ]
21[an agreement, and subject to the provisions of Sections 22.2 ]
22[and 23.1 through 23.16 of this Act, the owner shall be the ]
23[person designated in writing by a majority in interest of the ]
24[persons holding these rights.]
25    ["Department" means the Department of Natural Resources.]
26    ["Director" means the Director of Natural Resources.]
		SB3113 Enrolled	- 7 -	LRB104 19645 BAB 33094 b
1    ["Mining Board" means the State Mining Board in the ]
2[Department of Natural Resources, Office of Mines and Minerals.]
3    ["Mineral Owner's Royalty" means the share of oil and gas ]
4[production reserved in an oil and gas lease free of all costs ]
5[by an owner of the minerals whether denominated royalty or ]
6[overriding royalty.]
7    "Waste" means "physical waste" as that term is generally
8understood in the oil and gas industry, and further includes:
9        (1) the locating, drilling, and producing of any oil
10    or gas well or wells drilled contrary to the valid order,
11    rules and regulations adopted by the Department under the
12    provisions of this Act;
13        (2) permitting the migration of oil, gas, or water
14    from the stratum in which it is found, into other strata,
15    thereby ultimately resulting in the loss of recoverable
16    oil, gas or both;
17        (3) the drowning with water of any stratum or part
18    thereof capable of producing oil or gas, except for
19    secondary recovery purposes;
20        (4) the unreasonable damage to underground, fresh or
21    mineral water supply, workable coal seams, or other
22    mineral deposits in the operations for the discovery,
23    development, production, or handling of oil and gas;
24        (5) the unnecessary or excessive surface loss or
25    destruction of oil or gas resulting from evaporation,
26    seepage, leakage or fire, especially such loss or
		SB3113 Enrolled	- 8 -	LRB104 19645 BAB 33094 b
1    destruction incident to or resulting from the escape of
2    gas into the open air in excessive or unreasonable
3    amounts, provided, however, it shall not be unlawful for
4    the operator or owner of any well producing both oil and
5    gas to burn such gas in flares when such gas is, under the
6    other provisions of this Act, lawfully produced, and where
7    there is no market at the well for such escaping gas; and
8    where the same is used for the extraction of casinghead
9    gas, it shall not be unlawful for the operator of the plant
10    after the process of extraction is completed, to burn such
11    residue in flares when there is no market at such plant for
12    such residue gas;
13        (6) permitting unnecessary fire hazards; and
14        (7) permitting unnecessary damage to or destruction of
15    the surface, soil, animal, fish or aquatic life or
16    property from oil or gas operations.
17    ["Drilling Unit" means the surface area allocated by an ]
18[order or regulation of the Department to the drilling of a ]
19[single well for the production of oil or gas from an individual ]
20[pool.]
21    ["Enhanced Recovery Method" means any method used in an ]
22[effort to recover hydrocarbons from a pool by injection of ]
23[fluids, gases or other substances to maintain, restore or ]
24[augment natural reservoir energy, or by introducing immiscible ]
25[or miscible gases, chemicals, other substances or heat or by ]
26[in-situ combustion, or by any combination thereof.]
		SB3113 Enrolled	- 9 -	LRB104 19645 BAB 33094 b
1    "Well-Site Equipment" means any production-related
2equipment or materials specific to the well, including motors,
3pumps, pump jacks, tanks, tank batteries, separators,
4compressors, casing, tubing, and rods.
5    ["Temporary abandonment status" means a well that has ]
6[received an authorization for temporary abandonment status ]
7[from the Department.]
8(Source: P.A. 102-1017, eff. 1-1-23.)
9    (225 ILCS 725/6)  (from Ch. 96 1/2, par. 5409)
10    Sec. 6. The Department shall have the authority to conduct
11hearings and to make such reasonable rules as may be necessary
12from time to time in the proper administration and enforcement
13of this Act, including the adoption of rules and the holding of
14hearings for the following purposes:
15        (1) To require the drilling, casing and plugging of
16    wells to be done in such a manner as to prevent the
17    migration of oil or gas from one stratum to another; to
18    prevent the intrusion of water into oil, gas or coal
19    strata; to prevent the pollution of fresh water supplies
20    by oil, gas or salt water.
21        (2) To require the person desiring or proposing to
22    drill, deepen or convert any well for the exploration or
23    production of oil or gas, for injection or water supply in
24    connection with enhanced recovery projects, for the
25    disposal of salt water, brine, or other oil or gas field
		SB3113 Enrolled	- 10 -	LRB104 19645 BAB 33094 b
1    wastes, or for input, withdrawal, or observation in
2    connection with the storage of natural gas or other liquid
3    or gaseous hydrocarbons before commencing the drilling,
4    deepening or conversion of any such well, to make
5    application to the Department upon such form as the
6    Department may prescribe and to comply with the provisions
7    of this Section. The drilling, deepening or conversion of
8    any well is hereby prohibited until such application is
9    made and the applicant is issued a permit therefor as
10    provided by this Act. Each application for a well permit
11    shall include the following: (A) The exact location of the
12    well, (B) the name and address of the manager, operator,
13    contractor, driller, or any other person responsible for
14    the conduct of drilling operations, (C) the proposed depth
15    of the well, (D) lease ownership information, and (E) such
16    other relevant information as the Department may deem
17    necessary or convenient to effectuate the purposes of this
18    Act.
19        (2.5) Additionally, for each applicant who has not
20    been issued a permit that is (i) not of record with the
21    Department on the effective date of this amendatory Act of
22    the 104th General Assembly, or (ii) a permittee on record
23    with the Department but who has failed to make payments of
24    the assessments as required under Section 19.7 of this Act
25    at any time in the preceding 5 years of the application,
26    the permittee or applicant shall execute, as principal,
		SB3113 Enrolled	- 11 -	LRB104 19645 BAB 33094 b
1    and file with the Department a bond, executed by a surety
2    authorized to transact business in this State, in an
3    amount estimated to cover the cost of plugging the well
4    and restoring the well site and shall set at the following
5    rates:
6            (A) $10,000 for one well;
7            (B) $25,000 in total covering a blanket bond for
8        up to 10 wells;
9            (C) $50,000 in total covering a blanket bond for
10        up to 50 wells; or
11            (D) $100,000 in total covering a blanket bond for
12        up to 100 wells.
13        A blanket bond covering more than 100 wells shall be
14    increased to include the bond amount, as provided in this
15    paragraph (2.5), for the total number of wells more than
16    100 that are covered by the blanket bond. Such bond shall
17    be submitted to the Department before drilling, deepening,
18    converting, or operating any well for which a new or
19    transfer permit is required and that has not previously
20    been plugged and abandoned in accordance with the Act. The
21    Department shall release the bond if any of the following
22    are met:
23            (i) all wells covered by the bond are plugged and
24        all well sites are restored in accordance with this
25        Act and administrative rules;
26            (ii) all wells covered by the bond are transferred
		SB3113 Enrolled	- 12 -	LRB104 19645 BAB 33094 b
1        in accordance with this Act and administrative rules;
2        or
3            (iii) the permittee pays assessments to the
4        Department in accordance with Section 19.7 of this Act
5        for 5 consecutive years from the date of issuance of a
6        permit after the effective date of this amendatory Act
7        of the 104th General Assembly and the permittee is not
8        in violation of this Act or any administrative rules.
9        In lieu of a surety bond, the applicant may provide
10    certificates of deposit or irrevocable letters of credit
11    under such terms and conditions as the Department may
12    provide by rule.
13        The sureties on all bonds in effect on this amendatory
14    Act of the 104th General Assembly shall remain liable as
15    sureties in accordance with their undertakings until
16    released by the Department from further liability under
17    the Act. The principal on each bond in effect on the
18    effective date of this amendatory Act of the 104th General
19    Assembly shall be released from the obligation of
20    maintaining the bond if the well covered by a surety bond
21    has been plugged and the well site restored in accordance
22    with the Department's rules or the principal of the surety
23    has paid the initial assessment in accordance with Section
24    19.7 and no well or well site covered by the surety bond is
25    in violation of the Act.
26        No permit shall be issued to a corporation
		SB3113 Enrolled	- 13 -	LRB104 19645 BAB 33094 b
1    incorporated outside of Illinois until the corporation has
2    been authorized to do business in Illinois.
3        No permit shall be issued to an individual,
4    partnership, or other unincorporated entity that is not a
5    resident of Illinois until that individual, partnership,
6    or other unincorporated entity has irrevocably consented
7    to be sued in Illinois.
8        (3) To require the person assigning, transferring, or
9    selling any well for which a permit is required under this
10    Act to notify the Department of the change of ownership.
11    The notification shall be on a form prescribed by the
12    Department, shall be executed by the current permittee and
13    by the new permittee, or their authorized representatives,
14    and shall be filed with the Department within 30 days
15    after the effective date of the assignment, transfer or
16    sale. Within the 30-day [30 day] notification period and
17    prior to operating the well, the new permittee shall pay
18    the required well transfer fee and, where applicable, file
19    with the Department the bond required under subsection
20    (2.5) of this Section.
21        (4) To require the filing with the State Geological
22    Survey of all geophysical logs, a well drilling report and
23    drill cuttings or cores, if cores are required, within 90
24    days after drilling ceases; and to file a completion
25    report with the Department within 30 days after the date
26    of first production following initial drilling or any
		SB3113 Enrolled	- 14 -	LRB104 19645 BAB 33094 b
1    reworking, or after the plugging of the well, if a dry
2    hole. A copy of each completion report submitted to the
3    Department shall be delivered to the State Geological
4    Survey. The Department and the State Geological Survey
5    shall keep the reports confidential, if requested in
6    writing by the permittee, for 2 years after the date the
7    permit is issued by the Department. This confidentiality
8    requirement shall not prohibit the use of the report for
9    research purposes, provided the State Geological Survey
10    does not publish specific data or identify the well to
11    which the completion report pertains.
12        (5) To prevent "blowouts", "caving" and "seepage" in
13    the same sense that conditions indicated by such terms are
14    generally understood in the oil and gas business.
15        (6) To prevent fires.
16        (7) To ascertain and identify the ownership of all oil
17    and gas wells, producing leases, refineries, tanks,
18    plants, structures, and all storage and transportation
19    equipment and facilities.
20        (8) To regulate the use of any enhanced recovery
21    method in oil pools and oil fields.
22        (9) To regulate or prohibit the use of vacuum, 
23    including charging a vacuum permit application fee of up 
24    to $300 per permit.
25        (10) To regulate the spacing of wells, the issuance of
26    permits, and the establishment of drilling units.
		SB3113 Enrolled	- 15 -	LRB104 19645 BAB 33094 b
1        (11) To regulate directional drilling of oil or gas
2    wells.
3        (12) To regulate the plugging of wells.
4        (13) To require that wells for which no logs or
5    unsatisfactory logs are supplied shall be completely
6    plugged with cement from bottom to top.
7        (14) To require a description in such form as is
8    determined by the Department of the method of well
9    plugging for each well, indicating the character of
10    material used and the positions and dimensions of each
11    plug.
12        (15) To prohibit waste, as defined in this Act.
13        (16) To require the keeping of such records, the
14    furnishing of such relevant information and the
15    performance of such tests as the Department may deem
16    necessary to carry into effect the purposes of this Act.
17        (17) To regulate the disposal of salt or
18    sulphur-bearing water and any oil field waste produced in
19    the operation of any oil or gas well.
20        (18) To prescribe rules, conduct inspections and
21    require compliance with health and safety standards for
22    the protection of persons working underground in
23    connection with any oil and gas operations. For the
24    purposes of this paragraph, oil and gas operations include
25    drilling or excavation, production operations, plugging or
26    filling in and sealing, or any other work requiring the
		SB3113 Enrolled	- 16 -	LRB104 19645 BAB 33094 b
1    presence of workers in shafts or excavations beneath the
2    surface of the earth. Rules promulgated by the Department
3    may include minimum qualifications of persons performing
4    tasks affecting the health and safety of workers
5    underground, minimum standards for the operation and
6    maintenance of equipment, and safety procedures and
7    precautions, and shall conform, as nearly as practicable,
8    to corresponding qualifications, standards and procedures
9    prescribed under the Coal Mining Act.
10        (19) To deposit the amount of any forfeited surety
11    bond or other security in the Plugging and Restoration
12    Fund, a special fund in the State treasury which is hereby
13    created; to deposit into the Fund any amounts collected,
14    reimbursed or recovered by the Department under Sections
15    19.5, 19.6 and 19.7 of this Act; to accept, receive, and
16    deposit into the Fund any grants, gifts or other funds
17    which may be made available from public or private sources
18    and all earnings received from investment of monies in the
19    Fund; and to make expenditures from the Fund for the
20    purposes of plugging, replugging or repairing any well,
21    and restoring the site of any well, determined by the
22    Department to be abandoned or ordered by the Department to
23    be plugged, replugged, repaired or restored under Sections
24    8a, 19 or 19.1 of this Act, including expenses in
25    administering the Fund.
26    For the purposes of this Act, the State Geological Survey
		SB3113 Enrolled	- 17 -	LRB104 19645 BAB 33094 b
1shall co-operate with the Department in making available its
2scientific and technical information on the oil and gas
3resources of the State, and the Department shall in turn
4furnish a copy to the State Geological Survey of all drilling
5permits as issued, and such other drilling and operating data
6received or secured by the Department which are pertinent to
7scientific research on the State's mineral resources.
8(Source: P.A. 104-150, eff. 1-1-26.)
9    (225 ILCS 725/8a)  (from Ch. 96 1/2, par. 5413)
10    Sec. 8a. When an inspector or other authorized employee or
11agent of the Department determines that any permittee, or any
12person engaged in conduct or activities required to be
13permitted under this Act, is in violation of any requirement
14of this Act or the rules adopted hereunder or any permit
15condition, or has falsified or otherwise misstated any
16information on or relative to any application, permit,
17required record, or other document required to be submitted to
18the Department by this Act or any rules or procedures adopted
19under this Act, a notice of violation shall be completed and
20delivered to the Director or his designee.
21    The notice shall contain:
22        1. the nature of the violation;
23        2. the action needed to abate the violation, including
24    any appropriate remedial measures to prevent future
25    violation such as replacement, repair, testing and
		SB3113 Enrolled	- 18 -	LRB104 19645 BAB 33094 b
1    reworking a well and any appurtenances and equipment;
2        3. the time within which the violation is to be
3    abated; and
4        4. any factors known to the person completing the
5    notice of violation in aggravation or mitigation and the
6    existence of any factors indicating that the permit should
7    be conditioned or modified.
8    Upon receipt of a notice of violation, the Director shall
9conduct his investigation and may affirm, vacate or modify the
10notice of violation. In determining whether to take actions in
11addition to remedial action necessary to abate a violation,
12the Director shall consider the person's or permittee's
13history of previous violations including violations at other
14locations and under other permits, the seriousness of the
15violation including any irreparable harm to the environment or
16damage to property, the degree of culpability of the person or
17permittee and the existence of any additional conditions or
18factors in aggravation or mitigation including information
19provided by the person or permittee.
20    The Director shall serve the person or permittee with his
21decision at the conclusion of the investigation. Modification
22of the notice of violation may include:
23        1. any different or additional remedial action
24    required to abate the violation and the time within which
25    the violation must be abated;
26        2. the assessment of civil penalties not to exceed
		SB3113 Enrolled	- 19 -	LRB104 19645 BAB 33094 b
1    $5,000 for each and every falsification or misstatement of
2    information and civil penalties not to exceed $4,000 per
3    [and $1,000 a] day for each and every act of violation not
4    including a falsification or misstatement of information;
5        3. probationary or permanent modification or
6    conditions on the permit which may include special
7    monitoring or reporting requirements; and
8        4. revocation of the permit.
9    The Director's decision shall provide that the person or
10permittee has the right to request a hearing.
11    The Director's decision affirming, vacating or modifying
12the notice of violation shall be considered served when mailed
13by first class mail to the person or permittee at his last
14known address.
15    A person or permittee shall have 30 days from the date of
16service of the Director's decision to request a hearing. If
17the Director's decision includes the assessment of a civil
18penalty, the person or permittee charged with the penalty
19shall pay the penalty in full or, if the person or permittee
20wishes to contest either the amount of the penalty or the fact
21of the violation, submit the assessed amount, with the request
22for a hearing, to be held in escrow. The filing of a request
23for a hearing shall not operate as a stay of the Director's
24decision. All civil penalties finally assessed and paid to the
25Department shall be deposited in the Underground Resources
26Conservation Enforcement Fund.
		SB3113 Enrolled	- 20 -	LRB104 19645 BAB 33094 b
1    Any person who willfully or knowingly authorized, ordered,
2or carried out any violation cited in the Director's decision
3shall be subject to the same actions, including civil
4penalties, which may be imposed on the person or permittee
5under this Section.
6    Upon receipt of a request, the Department shall provide an
7opportunity for a formal hearing upon not less than 5 days
8notice. The hearing shall be conducted by the Director or
9anyone designated by him for such purpose, and shall be
10located and conducted in accordance with the rules of the
11Department. Failure of the person or permittee to timely
12request a hearing or, if a civil penalty has been assessed, to
13timely tender the assessed civil penalty, shall constitute a
14waiver of all legal rights to contest the Director's decision,
15including the amount of any civil penalty. Within 30 days of
16the close of the hearing record or expiration of the time to
17request a hearing, the Department shall issue a final
18administrative order.
19    If, at the expiration of the period of time originally
20fixed in the Director's decision or in any subsequent
21extension of time granted by the Department, the Department
22finds that the violation has not been abated, it may
23immediately order the cessation of operations or the portions
24thereof relevant to the violation. Such cessation order shall
25be served in the manner and within the time prescribed in
26Section 19.1 of this Act.
		SB3113 Enrolled	- 21 -	LRB104 19645 BAB 33094 b
1    Pending the holding of any hearing or entry of a final
2administrative order under this Section, the person or
3permittee to whom the cessation order was issued may file a
4written request for temporary relief subject to the same terms
5and conditions as are provided for in Section 19.1 of this Act.
6    If the Department finds that a person or permittee has
7failed to comply with a final administrative order, the
8Department may immediately order the cessation of operations
9or the portions thereof relevant to the final administrative
10order. Such cessation order shall be served in the manner and
11within the time prescribed in Section 19.1 of this Act. The
12Department shall commence a hearing within 5 days after
13issuance of a cessation order and shall conclude such hearing
14without appreciable delay. At the hearing the Department shall
15have the burden of proving that the person or permittee has not
16complied with the final administrative order. A cessation
17order issued under this paragraph shall continue in effect
18until modified, vacated, or terminated by the Department.
19    The Department shall refuse to issue a permit or permits,
20and shall revoke any permit or permits previously issued if:
21        (1) the applicant has falsified or otherwise misstated
22    any information on or relative to the permit application;
23        (2) the applicant has failed to abate a violation of
24    the Act specified in a final administrative decision of
25    the Department;
26        (3) an officer, director, partner, or person with an
		SB3113 Enrolled	- 22 -	LRB104 19645 BAB 33094 b
1    interest in the applicant exceeding 5% failed to abate a
2    violation of the Act specified in a final administrative
3    decision of the Department; or
4        (4) the applicant is an officer, director, partner, or
5    person with an interest exceeding 5% in another entity
6    that has failed to abate a violation of the Act specified
7    in a final administrative decision of the Department.
8(Source: P.A. 99-137, eff. 1-1-16.)
9    (225 ILCS 725/8e)
10    Sec. 8e. Temporary abandonment status fees.
11    (a) The Department shall assess and collect annual fees of
12$100 per well for each well that is in temporary abandonment
13status.
14    (b) All annual fees collected pursuant to subsection (a)
15shall be deposited into the Plugging and Restoration Fund, and 
16one-half of all such deposited fees shall be used solely for 
17the Landowner Grant Program. [deposited as follows: (1) ]
18[one-half of all such fees shall be placed in the Plugging and ]
19[Restoration Fund; and (2) one-half of all such fees shall be ]
20[placed in the Landowner Grant Program.]
21(Source: P.A. 102-1017, eff. 1-1-23.)
22    (225 ILCS 725/14)  (from Ch. 96 1/2, par. 5420)
23    Sec. 14. Each application for a permit to drill, deepen,
24convert, or amend shall be accompanied by the required fee of
		SB3113 Enrolled	- 23 -	LRB104 19645 BAB 33094 b
1$400. The fee for an application for a permit to oil lease road
2shall be $150. A fee of $75 for the first 100 wells and $50 for
3each well in excess of 100 shall be paid by the new owner for
4each transfer of well ownership. Except for the assessments
5required to be deposited in the Plugging and Restoration Fund
6under Section 19.7 of this Act and any other deposits required
7to be deposited in the Plugging and Restoration Fund under
8this Act, all fees assessed and collected under this Act shall
9be deposited in the Underground Resources Conservation
10Enforcement Fund. The moneys [monies] deposited into the
11Plugging and Restoration Fund or the Underground Resources
12Conservation Enforcement Fund under this Section or deposited 
13into the Plugging and Restoration Fund under Section 26 shall
14not be subject to administrative charges or chargebacks unless
15otherwise authorized by this Act.
16    On and after July 1, 2022, any fees that are created by or
17increased by this amendatory Act of the 102nd General Assembly
18in this Section shall be deposited into the Plugging and
19Restoration Fund.
20(Source: P.A. 102-1017, eff. 1-1-23.)
21    (225 ILCS 725/26)  (from Ch. 96 1/2, par. 5456)
22    Sec. 26. (a) Any person who violates any provision of this
23Act or any valid rule, regulation, permit or order of the
24Department made hereunder, or who repeats or continues the
25violation thereof, shall be subject to a civil penalty not to
		SB3113 Enrolled	- 24 -	LRB104 19645 BAB 33094 b
1exceed:
2        (1) $1,000 a day for each and every act of violation
3    lasting 90 days or less.
4        (2) $2,000 a day for any violation lasting more than 
5    90 days but less than 180 days.
6        (3) $4,000 a day for any violation lasting 180 days or 
7    more.
8    Any civil penalties that are assessed in excess of $1,000 
9per day shall be deposited into the Plugging and Restoration 
10Fund.
11    Civil penalties may not be assessed until notice has been 
12sent to the permittee. Such notice may be sent electronically 
13at the time the notice of violation is sent to the Springfield 
14office of the Department.
15    A permittee may notify the Department if an extraordinary 
16circumstance prevents abatement of a violation for which civil 
17penalties are sought to be assessed against the permittee. If 
18the permittee notifies the Department, the permittee shall 
19then provide evidence of the extraordinary circumstance to the 
20Department, as set forth by rule. The assessment of a civil 
21penalty shall not begin until the extraordinary circumstance 
22terminates, as set forth by rule. The process to declare an 
23extraordinary circumstance, the Department's review and 
24approval of the extraordinary circumstance, and any appeal of 
25the Department's determination shall be set by rule. An 
26extraordinary circumstance shall include, but not be limited 
		SB3113 Enrolled	- 25 -	LRB104 19645 BAB 33094 b
1to, roads being posted with a weight limit that prevents the 
2movement of equipment, wet field conditions that prevent 
3mitigation activities, or flooding that prevents the movement 
4of equipment for the abatement.
5    (b) Any person willfully [wilfully] aiding or abetting any
6other person in the violation of any provision of this Act, or
7any rule, regulation and order made hereunder, shall be
8subject to the same penalties as are prescribed herein for the
9violation by such other person.
10(Source: P.A. 85-1334.)