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 and
mineral oils and gaseous substances of whatever character naturally
lying 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" means
the 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", unless
otherwise 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 oil
and gas on the land; or
(3) any other actions directed toward the eventual production or
attempted 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 the
owner 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 of
the owner.
(c) The term does not include a mortgagee or security assignee of
the owner if the mortgagee or security assignee does not have a right
to 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 rights
relating to the occupancy, user, or ownership of the surface of land
affected 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 that
affects land in Indiana and that purports to convey or transfer an
interest in the oil and gas in, on, under, or that may be produced from
beneath the surface of the land transfers the following expressed
rights and privileges in addition to any other rights naturally flowing
from the character of the instrument in law to the named recipient:
(1) A person in interest in the oil and gas estate in land may
enter the land for the purpose of:
(A) exploring, prospecting, testing, surveying, or otherwise
investigating the land to determine the potential of the land
for oil or gas production; or
(B) otherwise conducting operations for oil and gas on the
land;
whether or not the person is also the owner, lessee, or licensee
of 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 in
Indiana may enter the land to drill a well or test well on the land
for the production or attempted production of oil and gas
regardless of whether the:
(A) person is also the owner, lessee, or licensee of an owner
of an interest in the surface rights in the land; and
(B) owner of the remaining rights in the land consents to the
entrance and drilling.
A person that drills a well under this subdivision shall provide
an accounting to the remaining or nonparticipating persons in
interest in the oil and gas estate in the land, for their respective
proportionate shares of the net profits arising from the
operations conducted upon the land for oil or gas. In calculating
the profits, a reduction may not be made from the gross
proceeds of the production of oil and gas, except for expenses
that are reasonably or necessarily incurred in connection with
the drilling, completion, equipping, and operation of the wells
drilled upon the premises during the period in which the
relationship of cotenancy existed between the person drilling
the well and the person whose interest is sought to be charged
with the respective proportionate part of the cost of the drilling.
(3) A person who may enter and enters land in Indiana for the
purpose of exploring, prospecting, testing, surveying, or
otherwise investigating the potential of the land for oil and gas,
or for the purpose of conducting operations on the land for the
production of oil and gas, is accountable to the owner of the
surface of the land for the actual damage resulting from the
person'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 not
liable for punitive damages. This subdivision does not increase
damages between a lessor and a lessee in a valid and subsisting
oil and gas lease that specifies damages if damages are not due
other than damages that are expressly provided by contract
between cotenants or the lessees of cotenants of a like estate in
the land. This section does not authorize the location of a well
for oil and gas nearer than two hundred (200) feet to an existing
house, barn, or other structure (except fences) without the
express consent of the owner of the structure.
(4) The right to conduct operations for oil and gas upon land
located 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 is
reasonably necessary for the operations;
subject to the payment of damages resulting from the
installation 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 be
taken from beneath the surface of land located in Indiana may be
created:
(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 and
title are created.
(b) Title to the estates specified under subsection (a) may be
vested 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 real
estate. As added by P.L.2-2002, SEC.8.
IC 32-23-7-8 Contract rights not limited; legislative intent; regulation of
industry; construction of law
Sec. 8. (a) This chapter does not limit the rights of parties to
contract with regard to the oil and gas estate affecting lands in
Indiana:
(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 with
regard to the subject matter treated in this chapter as the law existed
before March 5, 1951.
(c) This chapter does not affect the rights or powers of any
commission, board, or authority duly constituted for the regulation
of the oil and gas industry in Indiana. As added by P.L.2-2002, SEC.8.
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 and
mineral oils and gaseous substances of whatever character naturally
lying 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" means
the 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", unless
otherwise 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 oil
and gas on the land; or
(3) any other actions directed toward the eventual production or
attempted 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 the
owner 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 of
the owner.
(c) The term does not include a mortgagee or security assignee of
the owner if the mortgagee or security assignee does not have a right
to 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 rights
relating to the occupancy, user, or ownership of the surface of land
affected 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 that
affects land in Indiana and that purports to convey or transfer an
interest in the oil and gas in, on, under, or that may be produced from
beneath the surface of the land transfers the following expressed
rights and privileges in addition to any other rights naturally flowing
from the character of the instrument in law to the named recipient:
(1) A person in interest in the oil and gas estate in land may
enter the land for the purpose of:
(A) exploring, prospecting, testing, surveying, or otherwise
investigating the land to determine the potential of the land
for oil or gas production; or
(B) otherwise conducting operations for oil and gas on the
land;
whether or not the person is also the owner, lessee, or licensee
of 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 in
Indiana may enter the land to drill a well or test well on the land
for the production or attempted production of oil and gas
regardless of whether the:
(A) person is also the owner, lessee, or licensee of an owner
of an interest in the surface rights in the land; and
(B) owner of the remaining rights in the land consents to the
entrance and drilling.
A person that drills a well under this subdivision shall provide
an accounting to the remaining or nonparticipating persons in
interest in the oil and gas estate in the land, for their respective
proportionate shares of the net profits arising from the
operations conducted upon the land for oil or gas. In calculating
the profits, a reduction may not be made from the gross
proceeds of the production of oil and gas, except for expenses
that are reasonably or necessarily incurred in connection with
the drilling, completion, equipping, and operation of the wells
drilled upon the premises during the period in which the
relationship of cotenancy existed between the person drilling
the well and the person whose interest is sought to be charged
with the respective proportionate part of the cost of the drilling.
(3) A person who may enter and enters land in Indiana for the
purpose of exploring, prospecting, testing, surveying, or
otherwise investigating the potential of the land for oil and gas,
or for the purpose of conducting operations on the land for the
production of oil and gas, is accountable to the owner of the
surface of the land for the actual damage resulting from the
person'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 not
liable for punitive damages. This subdivision does not increase
damages between a lessor and a lessee in a valid and subsisting
oil and gas lease that specifies damages if damages are not due
other than damages that are expressly provided by contract
between cotenants or the lessees of cotenants of a like estate in
the land. This section does not authorize the location of a well
for oil and gas nearer than two hundred (200) feet to an existing
house, barn, or other structure (except fences) without the
express consent of the owner of the structure.
(4) The right to conduct operations for oil and gas upon land
located 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 is
reasonably necessary for the operations;
subject to the payment of damages resulting from the
installation 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 be
taken from beneath the surface of land located in Indiana may be
created:
(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 and
title are created.
(b) Title to the estates specified under subsection (a) may be
vested 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 real
estate. As added by P.L.2-2002, SEC.8.
IC 32-23-7-8 Contract rights not limited; legislative intent; regulation of
industry; construction of law
Sec. 8. (a) This chapter does not limit the rights of parties to
contract with regard to the oil and gas estate affecting lands in
Indiana:
(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 with
regard to the subject matter treated in this chapter as the law existed
before March 5, 1951.
(c) This chapter does not affect the rights or powers of any
commission, board, or authority duly constituted for the regulation
of the oil and gas industry in Indiana. As added by P.L.2-2002, SEC.8.
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 and
mineral oils and gaseous substances of whatever character naturally
lying 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" means
the 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", unless
otherwise 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 oil
and gas on the land; or
(3) any other actions directed toward the eventual production or
attempted 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 the
owner 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 of
the owner.
(c) The term does not include a mortgagee or security assignee of
the owner if the mortgagee or security assignee does not have a right
to 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 rights
relating to the occupancy, user, or ownership of the surface of land
affected 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 that
affects land in Indiana and that purports to convey or transfer an
interest in the oil and gas in, on, under, or that may be produced from
beneath the surface of the land transfers the following expressed
rights and privileges in addition to any other rights naturally flowing
from the character of the instrument in law to the named recipient:
(1) A person in interest in the oil and gas estate in land may
enter the land for the purpose of:
(A) exploring, prospecting, testing, surveying, or otherwise
investigating the land to determine the potential of the land
for oil or gas production; or
(B) otherwise conducting operations for oil and gas on the
land;
whether or not the person is also the owner, lessee, or licensee
of 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 in
Indiana may enter the land to drill a well or test well on the land
for the production or attempted production of oil and gas
regardless of whether the:
(A) person is also the owner, lessee, or licensee of an owner
of an interest in the surface rights in the land; and
(B) owner of the remaining rights in the land consents to the
entrance and drilling.
A person that drills a well under this subdivision shall provide
an accounting to the remaining or nonparticipating persons in
interest in the oil and gas estate in the land, for their respective
proportionate shares of the net profits arising from the
operations conducted upon the land for oil or gas. In calculating
the profits, a reduction may not be made from the gross
proceeds of the production of oil and gas, except for expenses
that are reasonably or necessarily incurred in connection with
the drilling, completion, equipping, and operation of the wells
drilled upon the premises during the period in which the
relationship of cotenancy existed between the person drilling
the well and the person whose interest is sought to be charged
with the respective proportionate part of the cost of the drilling.
(3) A person who may enter and enters land in Indiana for the
purpose of exploring, prospecting, testing, surveying, or
otherwise investigating the potential of the land for oil and gas,
or for the purpose of conducting operations on the land for the
production of oil and gas, is accountable to the owner of the
surface of the land for the actual damage resulting from the
person'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 not
liable for punitive damages. This subdivision does not increase
damages between a lessor and a lessee in a valid and subsisting
oil and gas lease that specifies damages if damages are not due
other than damages that are expressly provided by contract
between cotenants or the lessees of cotenants of a like estate in
the land. This section does not authorize the location of a well
for oil and gas nearer than two hundred (200) feet to an existing
house, barn, or other structure (except fences) without the
express consent of the owner of the structure.
(4) The right to conduct operations for oil and gas upon land
located 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 is
reasonably necessary for the operations;
subject to the payment of damages resulting from the
installation 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 be
taken from beneath the surface of land located in Indiana may be
created:
(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 and
title are created.
(b) Title to the estates specified under subsection (a) may be
vested 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 real
estate. As added by P.L.2-2002, SEC.8.
IC 32-23-7-8 Contract rights not limited; legislative intent; regulation of
industry; construction of law
Sec. 8. (a) This chapter does not limit the rights of parties to
contract with regard to the oil and gas estate affecting lands in
Indiana:
(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 with
regard to the subject matter treated in this chapter as the law existed
before March 5, 1951.
(c) This chapter does not affect the rights or powers of any
commission, board, or authority duly constituted for the regulation
of the oil and gas industry in Indiana. As added by P.L.2-2002, SEC.8.
