IC 32-23-7
    Chapter 7. Oil and Gas: Estates in Land

IC 32-23-7-1
"Oil and gas" defined
    Sec. 1. As used in this chapter, "oil and gas" means petroleum andmineral oils and gaseous substances of whatever character naturallylying or found beneath the surface of land.
As added by P.L.2-2002, SEC.8.

IC 32-23-7-2
"Oil and gas estate in land" defined
    Sec. 2. As used in this chapter, "oil and gas estate in land" meansthe aggregate of all rights in land that affect the oil and gas in, on,under, or that may be taken from beneath the surface of the land.
As added by P.L.2-2002, SEC.8.

IC 32-23-7-3
"Operations for oil and gas" defined
    Sec. 3. As used in this chapter, "operations for oil and gas", unlessotherwise indicated by the context of this chapter, means:
        (1) the:
            (A) exploration;
            (B) testing;
            (C) surveying; or
            (D) other investigation;
        of the potential of the land for oil and gas;
        (2) the actual drilling or preparations for drilling of wells for oiland gas on the land; or
        (3) any other actions directed toward the eventual production orattempted production of oil and gas from the land.
As added by P.L.2-2002, SEC.8.

IC 32-23-7-4
"Person in interest" defined
    Sec. 4. (a) As used in this chapter, "person in interest" means theowner of a beneficial interest in the oil and gas estate in land,whether the interest is held for life, for a term of years, or in fee.
    (b) The term includes a lessee, licensee, or duly qualified agent ofthe owner.
    (c) The term does not include a mortgagee or security assignee ofthe owner if the mortgagee or security assignee does not have a rightto the control or operation of the premises for oil and gas.
As added by P.L.2-2002, SEC.8.

IC 32-23-7-5
"Surface rights" defined
    Sec. 5. As used in this chapter, "surface rights" means all rightsrelating to the occupancy, user, or ownership of the surface of landaffected by this chapter.As added by P.L.2-2002, SEC.8.

IC 32-23-7-6
Rights and privileges transferred
    Sec. 6. A grant or reservation contained in an instrument thataffects land in Indiana and that purports to convey or transfer aninterest in the oil and gas in, on, under, or that may be produced frombeneath the surface of the land transfers the following expressedrights and privileges in addition to any other rights naturally flowingfrom the character of the instrument in law to the named recipient:
        (1) A person in interest in the oil and gas estate in land mayenter the land for the purpose of:
            (A) exploring, prospecting, testing, surveying, or otherwiseinvestigating the land to determine the potential of the landfor oil or gas production; or
            (B) otherwise conducting operations for oil and gas on theland;
        whether or not the person is also the owner, lessee, or licenseeof an owner of an interest in the surface rights in the land.
        (2) A person in interest in the oil and gas estate in land inIndiana may enter the land to drill a well or test well on the landfor the production or attempted production of oil and gasregardless of whether the:
            (A) person is also the owner, lessee, or licensee of an ownerof an interest in the surface rights in the land; and
            (B) owner of the remaining rights in the land consents to theentrance and drilling.
        A person that drills a well under this subdivision shall providean accounting to the remaining or nonparticipating persons ininterest in the oil and gas estate in the land, for their respectiveproportionate shares of the net profits arising from theoperations conducted upon the land for oil or gas. In calculatingthe profits, a reduction may not be made from the grossproceeds of the production of oil and gas, except for expensesthat are reasonably or necessarily incurred in connection withthe drilling, completion, equipping, and operation of the wellsdrilled upon the premises during the period in which therelationship of cotenancy existed between the person drillingthe well and the person whose interest is sought to be chargedwith the respective proportionate part of the cost of the drilling.
        (3) A person who may enter and enters land in Indiana for thepurpose of exploring, prospecting, testing, surveying, orotherwise investigating the potential of the land for oil and gas,or for the purpose of conducting operations on the land for theproduction of oil and gas, is accountable to the owner of thesurface of the land for the actual damage resulting from theperson's activities on the land to:
            (A) the surface of the land;
            (B) improvements to the land; or
            (C) growing crops on the land.        However, a person who enters land under this subdivision is notliable for punitive damages. This subdivision does not increasedamages between a lessor and a lessee in a valid and subsistingoil and gas lease that specifies damages if damages are not dueother than damages that are expressly provided by contractbetween cotenants or the lessees of cotenants of a like estate inthe land. This section does not authorize the location of a wellfor oil and gas nearer than two hundred (200) feet to an existinghouse, barn, or other structure (except fences) without theexpress consent of the owner of the structure.
        (4) The right to conduct operations for oil and gas upon landlocated in Indiana includes the right to:
            (A) install and maintain physical equipment on the land; and
            (B) use the portion of the surface of the land that isreasonably necessary for the operations;
        subject to the payment of damages resulting from theinstallation only of the equipment specified in this subdivision.
As added by P.L.2-2002, SEC.8.

IC 32-23-7-7
Interests created; title; alienability
    Sec. 7. (a) Interests in the oil and gas in, on, under, or that may betaken from beneath the surface of land located in Indiana may becreated:
        (1) for life;
        (2) for a term of years; or
        (3) in fee;
in the manner and to the extent that other interests in real estate andtitle are created.
    (b) Title to the estates specified under subsection (a) may bevested in one (1) or more persons by:
        (1) sole ownership;
        (2) tenancy in common;
        (3) joint tenancy;
        (4) tenancy by the entireties; or
        (5) another manner recognized under Indiana law.
    (c) Interests or estates specified in this section are freely alienable,in whole or in part, in the same manner as are other interests in realestate.
As added by P.L.2-2002, SEC.8.

IC 32-23-7-8
Contract rights not limited; legislative intent; regulation ofindustry; construction of law
    Sec. 8. (a) This chapter does not limit the rights of parties tocontract with regard to the oil and gas estate affecting lands inIndiana:
        (1) to the extent permitted by; and
        (2) in a manner consistent with;
the nature of the estate in law as specified under this chapter.    (b) This chapter is intended to declare the law of this state withregard to the subject matter treated in this chapter as the law existedbefore March 5, 1951.
    (c) This chapter does not affect the rights or powers of anycommission, board, or authority duly constituted for the regulationof the oil and gas industry in Indiana.
As added by P.L.2-2002, SEC.8.