State of Illinois
92nd General Assembly

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HB0163 Engrossed                               LRB9200791JStm

 1        AN ACT to amend  the  Illinois  Petroleum  Education  and
 2    Marketing Act by changing Sections 5, 10, 30, and 35.

 3        Be  it  enacted  by  the People of the State of Illinois,
 4    represented in the General Assembly:

 5        Section  5.   The  Illinois   Petroleum   Education   and
 6    Marketing  Act is amended by changing Sections 5, 10, 30, and
 7    35 as follows:

 8        (225 ILCS 728/5)
 9        Sec. 5.  Definitions.  As used in this Act:
10        "Board" means the Illinois Petroleum Resources Board.
11        "Interest owner" means a person who owns or possesses  an
12    interest  in the gross production of oil or gas produced from
13    a well in Illinois.
14        "Person"  means  an  individual,  group  of  individuals,
15    partnership,  corporation,  association,  limited   liability
16    company,  cooperative,  or any other entity or an employee of
17    the entity.
18        "Producer" means a person who produces oil and gas or who
19    derives a majority of his or her oil and gas  income  from  a
20    working interest.
21        "Qualified  producer association" means an entity that is
22    organized and operating within the State and that  represents
23    oil producers on a Statewide basis.
24    (Source: P.A. 90-614, eff. 7-10-98.)

25        (225 ILCS 728/10)
26        Sec. 10.  Illinois Petroleum Resources Board.
27        (a)  There is hereby created until July 1, 2008 2002, the
28    Illinois  Petroleum Resources Board which shall be subject to
29    the provisions of the  Regulatory  Agency  Sunset  Act.   The
30    purpose  of  the Board is to coordinate a program designed to
HB0163 Engrossed            -2-                LRB9200791JStm
 1    demonstrate to the  general  public  the  importance  of  the
 2    Illinois   oil   exploration   and  production  industry,  to
 3    encourage the wise and efficient use of  energy,  to  promote
 4    environmentally sound production methods and technologies, to
 5    develop  existing  supplies  of  State  oil resources, and to
 6    support research and educational  activities  concerning  the
 7    oil exploration and production industry.
 8        (b)  The  Board  shall  be  composed  of 12 members to be
 9    appointed  by  the  Governor.   The   Governor   shall   make
10    appointments  from  a  list  of  names submitted by qualified
11    producer associations, of which  10  shall  be  oil  and  gas
12    producers.
13        (c)  A member of the Board shall:
14             (1)  be at least 25 years of age;
15             (2)  be a resident of the State of Illinois; and
16             (3)  have  at  least 5 years of active experience in
17        the oil industry.
18        (d)  Members shall serve for a term of  3  years,  except
19    that  of  the initial appointments, 4 members shall serve for
20    one year, 4 members for 2 years, and 4 members for 3 years.
21        (e)  Vacancies shall be filled for the unexpired term  of
22    office in the same manner as the original appointment.
23        (f)  The  Board shall, at its first meeting, elect one of
24    its members as chairperson, who shall preside  over  meetings
25    of the Board and perform other duties that may be required by
26    the Board.  The first meeting of the Board shall be called by
27    the Governor.
28        (g)  No  member  of  the  Board shall receive a salary or
29    reimbursement for duties performed as a member of the  Board,
30    except that members are eligible to receive reimbursement for
31    travel expenses incurred in the performance of Board duties.
32    (Source: P.A. 90-614, eff. 7-10-98.)

33        (225 ILCS 728/30)
HB0163 Engrossed            -3-                LRB9200791JStm
 1        Sec. 30.  Assessment on oil and gas production.
 2        (a)  To  fund  the  activities  of the Illinois Petroleum
 3    Resources Board, an assessment shall be levied in the  amount
 4    of  one-tenth of 1% of gross revenues of oil and gas produced
 5    from each well in the State of Illinois.
 6        (b)  The assessment levied  by  subsection  (a)  of  this
 7    Section shall be deducted from the proceeds of production and
 8    collected  by  the  first purchaser. The assessment, which is
 9    imposed on the interest owner producer, shall be remitted  to
10    the  Department  of  Revenue  by the first purchaser on a tax
11    return filed no  later  than  the  15th  day  of  each  month
12    following  the  end  of the month in which the assessment was
13    collected.  To defray the costs of receiving  and  depositing
14    the  assessments  levied  by  this Section, the Department of
15    Revenue shall  retain  $750  per  month  of  the  assessments
16    received   for   deposit   into   the   Tax   Compliance  and
17    Administration Fund.  The remaining moneys  received  by  the
18    Department  of  Revenue  pursuant  to  this  Section shall be
19    deposited into the  Illinois  Petroleum  Resources  Revolving
20    Fund.
21        (c)  The   Board   shall   be   responsible   for  taking
22    appropriate legal actions to collect any assessment which  is
23    not paid or is not properly paid.
24    (Source: P.A. 90-614, eff. 7-10-98.)

25        (225 ILCS 728/35)
26        Sec. 35.  Refunds.
27        (a)  Any  person  subject  to  the  assessment  levied by
28    Section 30 of this Act may request a refund  as  provided  in
29    this  Section  of  the  assessment paid on production for the
30    preceding calendar year.  Upon compliance with the provisions
31    of this Section and rules adopted by the Board  to  implement
32    this   Section,   the  Board  shall  refund  to  each  person
33    requesting a refund the amount of the assessment paid  by  or
HB0163 Engrossed            -4-                LRB9200791JStm
 1    on  behalf  of the person during the preceding calendar year.
 2    Refunds made to producers will include interest earned at the
 3    rate equal to the average United States Treasury bill rate of
 4    the  preceding  calendar  year  as  certified  by  the  State
 5    Treasurer.
 6        (b)  The request for a refund of the assessment  paid  on
 7    production  for  the  preceding  calendar  year  must be made
 8    during the first 3 calendar  months  following  the  calendar
 9    year for which the refund is requested.  Failure to request a
10    refund  during  this  period shall terminate the right of any
11    person to  receive  a  refund  for  the  assessment  paid  on
12    production  for the preceding calendar year.  The Board shall
13    give notice of the availability of the refund  through  press
14    releases or another means it deems appropriate.
15        (c)  Each  person  requesting  a  refund shall execute an
16    affidavit  showing  the  amount  of  refund   requested   and
17    demonstrating  that the affiant was the interest owner of the
18    production for which the refund is requested.  The Board  may
19    verify the accuracy of the request for refund.
20        (d)  No  entity  or person requesting a refund under this
21    Section shall be eligible to serve or have  a  representative
22    serve as a member of the Board.
23    (Source: P.A. 90-614, eff. 7-10-98.)

24        Section  99.  Effective date.  This Act takes effect upon
25    becoming law.

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