770 ILCS 70/3

Current through Public Act 103-1052

Section 770 ILCS 70/3 - Property Subject to Lien

A.Liens created under Section 2 shall extend to:

1.the leasehold for which the materials or services were furnished, or for which the labor was performed, and the appurtenance thereunto belonging;

2.all materials and fixtures owned by the owner or owners of such leasehold and used or employed, or furnished to be used or employed in the drilling, completing, equipping or operating of any oil or gas well located thereon;

3.all oil or gas wells located on such leasehold, and the oil or gas produced therefrom, and the proceeds thereof inuring to the leasehold therein as such leasehold interest existed on the date such labor was first performed or such material or services were first furnished;

4.all proceeds of production inuring to the leasehold held by any purchaser of such oil and gas; and

5.the whole of the pipeline to which the materials or services were furnished, or for which labor was performed, and all buildings and appurtenances thereunto belonging, including, without limiting the generality of the foregoing, gates, valves, pumps, pump stations, and booster stations, and upon all materials and fixtures owned by the owner of such pipeline and used or employed or furnished to be used or employed in the construction thereof.

B.If materials or services are furnished or labor is performed for only a portion of the leasehold, the lien against the leasehold created by this Act shall be limited to:

1.the minimum surficial acreage for well spacing designated by the permittee for a well drilled thereon described as the establishing drilling unit with the Department of Natural Resources; and

2.if no such designation was made by the permittee prior to the filing of a claim for lien, the minimum surficial acreage for well spacing designated for a well drilled thereon for an established drilling unit described in the claim for lien, which will be designated by the court in the foreclosure proceeding.

C.If materials or services are furnished or labor is performed for leaseholds, the proceeds of which are commingled by common storage or are validly polled or unitized by agreement of the owners thereof or by operation of law or by any order of any agency having jurisdiction thereof, the lien shall extend to all of the leaseholds so commingled by common storage, pooling or unitization.

770 ILCS 70/3

P.A. 91-357, eff. 7/29/1999.