a) The
Department shall schedule a hearing to consider a petition for modification of
the location of the standard drilling unit described in Section
240.410, based on
geologic or engineering characteristics of the
reservoir, relative to the land
survey system specified in Section
240.410 and
well density
specified in Section
240.465.
b) Upon petition of any person having an
interest in oil or gas in a lease or drilling unit, when the proposed unit does
not fit within divisions created by the official United States Public Land
Survey described in Section 240.410, the Department shall initiate a review of
the petition to determine whether the petition will be accepted. If the permit
is accepted, a public hearing will be scheduled pursuant to subsection
(e).
c) Contents of petition shall
include:
1) the name and address of the
petitioner;
2) a legal land
description of the drilling unit sought to be established;
3) a description of the petitioner's interest
in oil or gas in the drilling unit at issue; and
4) the petitioner's geologic or engineering
reason for requesting a modified drilling unit.
d) Execution and Filing
1) The petition to modify a drilling unit in
accordance with this Section or establish a special drilling unit in accordance
with Section
240.465
shall be sent to the
Department offices located in Springfield,
Illinois.
2) Every petition shall
be signed by the petitioner or his or her representative and the petitioner's
address shall be stated on the petition. The signature of the petitioner or his
or her representative constitutes a certificate by him or her that he or she
has read the petition and that to the best of his or her knowledge, information
and belief there is good ground to support the petition. The petition
shall be accompanied by a non-refundable application fee in the amount of
$1,500. [ 225 ILCS 725/21.1
(b-2)]
3) A petition shall not be
accepted if:
A) the petitioner has
falsified or otherwise misstated any information on or relative to the
petition;
B)
the petitioner has failed to abate a violation of the
Act specified in a final administrative decision of the
Department;
C)
an
officer, director, agency, power of attorney or
partner in the petitioner, or a
person with an interest in the petitioner exceeding
5% was or is an officer, director, partner, agent,
power of attorney or person with an interest exceeding 5% in another
entity that failed to abate a violation of the Act specified in a final
administrative decision of the Department;
D)
the petitioner was or
is an officer, director, agent, power of attorney,
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 [
225 ILCS
725/8(a) ];
E) funds have been expended and remain
outstanding from the
PRF to plug wells, under Subpart P, for which the
petitioner:
i) was a previous
permittee;
ii) was or is an
officer, director, agent, power of attorney, partner or person with an interest
exceeding 5% in a permittee for which funds were expended; or
iii) an officer, director, agent, power of
attorney or partner in the petitioner, or a person with an interest in the
petitioner exceeding 5% was or is an officer, director, agent, power of
attorney, partner or person with an interest exceeding 5% in a permittee for
which funds were expended; or
F) the petitioner is delinquent in the
payment of Annual Well Fees; or the petitioner was or is an officer, director,
agent, power of attorney, partner or person with an interest exceeding 5% in
another permittee who is delinquent in payment of Annual Well Fees; or an
officer, director, agent, power of attorney or partner in the petitioner, or
person with an interest in the applicant exceeding 5%, in a permittee who is
delinquent in payment of Annual Well Fees.
4) If the Department finds the petition
deficient relative to the requirements of subsection (c)(2) or (3), the
petition shall not be accepted and the Department shall issue a written
deficiency notice to the petitioner within 10 business days after its receipt.
If the petitioner does not respond to the deficiencies within 60 days, the
petition will be deemed denied.
5)
If the Department finds the petition deficient relative to the requirements of
subsections (a) or (b), the Department shall issue a written deficiency notice
to the petitioner within 10 business days after the receipt date. If the
petitioner does not respond to the deficiencies within 60 days, the petition
will be deemed denied. Within 60 days after receipt of any deficiency notice
under this subsection (d)(5), the petitioner may request, in writing, that the
petition be accepted and a public hearing be held, in lieu of responding to the
deficiency.
6)
If the
Department does not timely respond to any petition or the submission of
additional information or documentation after initial submission
within 10 business days after receipt, then the petition shall be
deemed to be in sufficient form for acceptance and filing and the Department
shall proceed with the scheduling of a public hearing. [
225 ILCS
725/21.1(f) ]
e)
A public hearing on the petition
shall be scheduled not less than 30 days, but not more than 60 days, after the
acceptance of the petition
by the Department. [
225 ILCS
725/21.1(f) ] Notice of hearing shall
be given by the petitioner to all mineral owners within the boundaries set
forth in the petition, and to all permittees whose wells or leases are within
1/4 mile of the boundaries of the lease or drilling unit, by U.S. Postal
Service certified mail, return receipt requested, and by publication in a
newspaper of general circulation in each county in which any portion of the
proposed lease or drilling unit or units is located, at least 10 days prior to
the hearing. The notice shall include:
1) the
name and address of the petitioner;
2) the date of the hearing;
3) the legal land description of the drilling
unit sought to be established;
4)
the geologic name and depth of the proposed production formations;
5) the address and telephone number for the
Office of Oil and Gas Resource Management of the Department
6) As to the notice to be mailed, a statement
that the recipient has 14 days from the date of mailing the notice, as stated
in the notice, to comment on the petition and that comments must be made in
writing to the Office; and
7) As to
the newspaper publication notice, a statement that the public has 10 days from
the date of the publication of the notice, as stated in the public notice, to
comment on the petition and that comments must be made in writing to the
Office.
f) Pre-Hearing
Conferences
1) Upon his or her own motion or
the motion of a party, the Hearing Officer shall direct the parties or their
counsel to meet for a conference in order to:
A) Simplify the factual and legal issues
presented by the hearing request;
B) Receive stipulations and admissions of
fact and of the contents and authenticity of documents;
C) Exchange lists of witnesses the parties
intend to have testify and copies of all documents the parties intend to
introduce into evidence at the hearing; and
D) Discuss and resolve such other matters as
may tend to expedite the disposition of the hearing request and to assure a
just.
2) Pre-hearing
conferences may be held by telephone conference, video conference or other
electronic means if that procedure is acceptable to all parties.
g) Hearing
1) Hearing Officer: Every hearing shall be
conducted by a Hearing Officer designated by the
Director. The Hearing Officer
shall take all necessary action to avoid delay, to maintain order and to
develop a clear and complete record, and shall have all powers necessary and
appropriate to conduct a fair hearing and to render a decision on the petition,
including the following:
A) To administer
oaths and affirmations;
B) To
receive relevant evidence;
C) To
regulate the course of the hearing and the conduct of the parties and their
counsel;
D) To consider and rule
upon procedural requests;
E) To
examine witnesses and direct witnesses to testify, limit the number of times
any witness may testify, limit repetitive or cumulative testimony and set
reasonable limits on the amount of time each witness may testify;
F) To require the production of documents or
subpoena the appearance of witnesses, either on the Hearing Officer's own
motion or for good cause shown on motion of any party of record.
2) All hearings are open to the
public and are held in compliance with the Americans with Disabilities
Act of
1990 (
42 USC
12101
et seq.). The hearings will be held at locations ordered by the Hearing
Officer. The Hearing Officer will select hearing locations that comply with any
geographic requirements imposed by applicable law and, to the extent feasible,
promote the convenience of the parties and the conservation of the
Department's
resources. All hearings are subject to cancellation without notice. Interested
persons may contact the
Department or the Hearing Officer for information about
the hearing. Parties, participants and members of the public must conduct
themselves with decorum at the hearing.
3) Upon the motion of any party, the Hearing
Officer may order that a hearing be held by telephone conference, video
conference or other electronic means. In deciding whether a hearing should be
held by telephone conference, video conference or other electronic means,
factors that the Hearing Officer shall consider include cost-effectiveness,
efficiency, facility accommodations, witness availability, public interest, the
parties' preferences, and the proceeding's complexity and
contentiousness.
4) Every
interested person wishing to participate at the hearing shall enter an
appearance in writing. The Hearing Officer shall determine if the interested
person shall be allowed to enter as a party of record. The Hearing Officer
shall base that determination on the same standards used to determine parties
in Circuit Court.
5) All
participants in the hearing shall have the right to be represented by
counsel.
6) The Hearing Officer
shall allow all parties to present statements, testimony, evidence and argument
as may be relevant to the proceeding.
7) At least one representative of the
Department shall appear at any hearing held under this Section and shall be
given the opportunity to question parties or otherwise elicit information
necessary to reach a decision on the petition.
8) When applicable, the following shall be
addressed prior to receiving evidence:
A) The
petitioner may offer preliminary exhibits, including documents necessary to
present the issues to be heard, notices, proof of publication and orders
previously entered in the cause.
B)
Ruling may be made on any pending motions.
C) Any other preliminary matters appropriate
for disposition prior to presentation of evidence may be addressed.
h) Evidence
1) Admissibility: A party shall be entitled
to present his or her case by oral or documentary evidence, to submit rebuttal
evidence, and to conduct cross-examination as may be required for a full and
true disclosure of the facts. Any oral or documentary evidence received by the
presiding Hearing Officer shall exclude evidence that is irrelevant, immaterial
or unduly repetitious. The rules of evidence and privilege applied in civil
cases in the courts of the State of Illinois shall be followed; however,
evidence not admissible under those rules of evidence may be admitted, except
when precluded by reasonable, prudent men in the conduct of their affairs.
Subject to these requirements, when a hearing will be expedited and the
interests of the parties will not be prejudiced, a Hearing Officer shall allow
evidence to be received in written form.
2) Official Notice: Official notice may be
taken of any material fact not appearing in evidence in the record if the
circuit courts of this State could take judicial notice of that fact. In
addition, notice may be taken of generally recognized technical or scientific
facts within the Department's specialized knowledge.
3) Order of Proof: The petitioner shall open
the proof. Other parties of record shall be heard immediately following the
petitioner. The Hearing Officer or Department representatives may examine any
witnesses. In all cases, the Hearing Officer shall designate the order of proof
and may limit the scope of examination or cross-examination.
4) Briefs: The Hearing Officer may require or
allow parties to submit written briefs to the Hearing Officer within 10 days
after the close of the hearing or within such other time as the Hearing Officer
shall determine as being consistent with the Department's responsibility for an
expeditious decision.
i)
Record of Proceedings; Testimony
The Department shall provide at its expense a certified
shorthand reporter to take down the testimony and preserve a record of all
proceedings at the hearing. Any person testifying shall be required to do so
under oath. However, relevant unsworn statements, comments and observations by
any interested person may be heard and considered by the Department and
included in the record.
j)
Postponement or Continuance of Hearing
A hearing may be postponed or continued for due cause by the
Hearing Officer upon his or her own motion or upon the motion of a party to the
hearing. A motion filed by a party to the hearing shall set forth facts
attesting that the request for continuance is not for the purpose of delay.
Except in the case of an emergency, motions requesting postponement or
continuance shall be made in writing and shall be received by all parties to
the hearing.
k) Default
If a party, after proper service of notice, fails to appear
at the pre-hearing conference or at a hearing, and if no continuance is
granted, the Department may then proceed to make its decision in the absence of
that party. If the failure to appear at such pre-hearing conference or hearing
is due to an emergency situation beyond the parties' control, and the
Department is notified of the situation on or before the scheduled pre-hearing
conference or hearing date, the pre-hearing conference or hearing will be
continued or postponed pursuant to Section 240.460(i). Emergency situations
include sudden unavailability of counsel, sudden illness of a party or his or
her representative, or similar situations beyond the parties'
control.
l)
The
Department, after public hearing, shall either grant or deny the petition
within 20 working days after the conclusion of the hearing. [
225 ILCS
725/21.1(f) ]
m) If the
Department finds, based on the
reservoir's geological and engineering characteristics, that a modified
drilling unit or units are necessary to prevent waste, to protect correlative
rights, and to prevent the unnecessary drilling of wells, the
Department shall
enter an order establishing the modified drilling unit or units. Each order
shall:
1) specify the location of each
drilling unit relative to the land survey system; and
2) specify the set back from the drilling
unit boundaries for the location of the oil or gas well on each drilling unit;
and
3) terminate 1 year from the
effective date of the order unless a well has been drilled on the drilling unit
within that time. If a well has been drilled within that time, the order shall
terminate when the well is plugged.
n) Order - Final Administrative Decision
The Director's order is a final administrative decision of
the Department, pursuant to Section 10 of the Act.