HB 3540

Abstract

Amends the Illinois Oil and Gas Act. Authorizes the Department of Natural Resources to determine if oil and gas leases submitted with an application for a permit or transfer of a permit for a 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. Requires that the determinations be based upon affidavits of non-development or non-production from knowledgeable individuals familiar with the history of development and production of oil or gas as to such lands, together with other evidence, which create a rebuttable presumption that the prior oil and gas leases have terminated and are of no further force and effect and that the submitted oil and gas leases are operative and effective. Provides that a court order or judgment declaring the prior leases terminated is not required for such determinations, except in extraordinary circumstances where the determinations cannot reasonably be concluded from the affidavits or evidence submitted to or available from 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. 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. Provides that any request for a determination shall require the payment of a nonrefundable fee. Requires all determinations on leases by the Department be made no later than 90 days after the Department's receipt of a valid request for the determination. Effective immediately.