American Oil and Gas Reporter - April 2015 - 168

ConventionCoverage: Illinois Oil & Gas Association
permits.
"If unconventionals do come to Illinois,
I don't want them to be given any preference over conventionals," Mankowski
continued. "I want to treat them the same
and be able to have both simultaneously."
IDNR Efficiency
Director Rosenthal addressed IDNR's
changes and goals during IOGA's Wildcatter Luncheon on March 6. "My responsibility is to ensure we support Governor Rauner and all that he wants to
do," Rosenthal elaborated. "I am a military
guy and a farmer, and that means I emphasize following the rules. Our responsibility within IDNR is making sure the
rules are followed. When that happens,
we can issue permits and so forth."
Rosenthal emphasized the importance
of using state resources and "putting
people back to work," both of which can
be applied to the Illinois Basin oil and
natural gas industry, he said. "As a farmer,
I am a conservationist; air and water
quality are important as a part of the environment," he expressed. "But I understand-and you (meeting attendees) understand-we have resources that we need
to use, and we can do those in conjunction
with each other: environmental conservation and resource use."
He mentioned that Rauner had urged
IDNR to streamline its permitting process,
but Rosenthal clarified that did not mean
the department would be "cutting corners."
Rather, it will be hiring additional personnel and improving interdepartmental
efficiency. He also said that the department

Wayne Rosenthal, director of the Illinois
Department of Natural Resources, addresses IOGA members at the association's Wildcatter Luncheon. Rosenthal
emphasized using resources wisely, and
creating and supporting economic
growth in Illinois.

was prepared to deal with fracturing applications and permits, even though the
Illinois Basin was experiencing a down
market.
"You guys know better than me that
this is cyclical, and the price will come
back up," he said. "When that happens,
we at IDNR are prepared for anything
the industry is going to need from us."
Rosenthal endorsed his "team of professionals" working at IDNR, commenting
that while many were new to the department, they were not new to the industry,
its challenges, or its needs and goals. He
concluded by saying he expected to face
political, financial, and economic challenges, but added that he appreciated the
full cooperation from IOGA members
and the industry at large.
"We are all in this together," he allowed. "Governor Rauner is not my boss,
and he will tell you that. You, the people,
are my boss, but Rauner, IDNR and the
industry have a long road ahead of us. I
believe we have the leadership we will
need to overcome any obstacles."

Legislative Workings
According to Richards and IOGA
General Counsel Craig R. Hedin of
Gesell's Pump Sales & Service Inc., the
association either is monitoring or is promoting several industry-related bills in
the Illinois Legislature this session.
Among the bills association representatives said they were supporting:
* HB 313, introduced by Representative Brandon Phelps, D-Harrisburg, is
an initiative of IOGA that amends the
Oil & Gas Rights Act to raise the ceiling
for remitting royalty payments annually
from $25 to $100.
* HB 3540 and SB 1562, by Phelps
and Senator Bill Brady, R-Bloomington,
respectively, also are initiatives of IOGA.
They would amend the Oil & Gas Act to
authorize the IDNR to determine through
affidavits whether leases submitted with
an application for a permit or transfer of
a permit for a well were operative on the
basis that previous leases had terminated
because of nondevelopment or nonproduction. The bills, if passed, would go
into effect immediately and require the
department to make a decision within 90
days of a request being submitted.
* HB 3215 and SB 1378, by Phelps
and Senator Gary Forby, D-Benton, respectively, are initiatives of IDNR that
would amend the hearing process for
abandoned or leaking wells. They would

168 THE AMERICAN OIL & GAS REPORTER

IOGA General Counsel Craig R. Hedin of
Gesell's Pump Sales & Service Inc., describes the legislation the association is
monitoring or promoting this session.
During the IOGA annual meeting's Legal
& Legislative session, Hedin informed association members that abandoned well
legislation was a major issue this year.

allow for the permittee of a well that has
been abandoned or was leaking deleterious
substances into any freshwater formation
or onto the surface to be notified of a
hearing by publication in a newspaper if
the permittee couldn't be found.
* HB 3430, by Representative Terri
Bryant, R-Murphysboro, is another initiative of IDNR that clarifies the use of
deficiency letters when issuing permits.
This is a follow-up on legislation last
year that mandates the department issue
permits within 20 working days.
Richards and Hedin listed two bills
IOGA opposes. HB 3096 and SB 1202,
introduced by Representative Deb Conroy,
D-Villa Park, and Senator Julie Morrison,
D-Deerfield, are an initiative of the Illinois
Environmental Council. They would
amend the Oil & Gas Wells on Public
Lands Act to prohibit new permits for
surface extraction activities on lands
owned by the Department of Natural Resources or the federal government. They
also would repeal provisions governing
certain petroleum leases, rights of way
over public lands, and preferential rights
to prospecting permits.
Richards and Hedin both mentioned
companion bills the association was
neutral on. HB 4128 and SB 1377 would
create stricter penalties for those who
falsified or misstated information on any
document submitted to IDNR.
Ì



American Oil and Gas Reporter - April 2015

Table of Contents for the Digital Edition of American Oil and Gas Reporter - April 2015

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