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Illinois Statutes Chapter 5. General Provisions § 615/8. Leases; royalty; term; form

Current as of January 01, 2025 | Updated by Findlaw Staff

§ 8. A permittee, at any time during the life of the permit or upon the termination thereof, shall be entitled to a lease for the extraction of petroleum from not to exceed one section, or an equivalent area, of such land to be selected by such permittee. Such lease shall be at a royalty of not more than twelve and one-half (12 1/212 %) per centum of all petroleum produced and saved therefrom or the market value of such petroleum at the option of the Department, and shall provide for an annual rental, payable in advance, of from one ($1.00) dollar to ten ($10.00) dollars per acre, as the Department may determine, which rentals shall be credited against future royalties. Such leases shall be for a primary term of ten (10) years and as long thereafter as oil in commercial quality and commercial quantity can be produced from the lands embraced in the lease. The form and terms of such leases shall be the same as the standard commercial petroleum lease generally in use in the territory in which the oil, gas or other petroleum deposits are located, with the addition thereto of such terms as in this Act and the rules and regulations of the Department are provided. Whenever the conditions contained in such standard commercial lease are in conflict with the provisions of this Act, the provisions of this Act shall control.

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Cite this article: FindLaw.com - Illinois Statutes Chapter 5. General Provisions § 615/8. Leases; royalty; term; form - last updated January 01, 2025 | https://codes.findlaw.com/il/chapter-5-general-provisions/il-st-sect-5-615-8/

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