Full Text of HB6224 99th General Assembly
HB6224 99TH GENERAL ASSEMBLY |
| | 99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016 HB6224 Introduced 2/11/2016, by Rep. Jay Hoffman SYNOPSIS AS INTRODUCED: |
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Amends the Illinois Hydraulic Fracturing Tax Act. Changes the definition of "Illinois construction worker" to mean a construction worker domiciled in Illinois for 60 months (instead of 24 months) prior to the date of the issuance of a high volume horizontal hydraulic fracturing permit for the well site on which the construction is performed. Effective immediately.
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| | A BILL FOR |
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| 1 | | AN ACT concerning revenue.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Illinois Hydraulic Fracturing Tax Act is | 5 | | amended by changing Section 2-10 as follows: | 6 | | (35 ILCS 450/2-10)
| 7 | | Sec. 2-10. Definitions. For the purposes of this Act, | 8 | | unless the context otherwise requires: | 9 | | "Barrel" for oil measurement means a barrel of 42 U.S. | 10 | | gallons of 231 cubic inches per gallon, computed at a | 11 | | temperature of 60 degrees Fahrenheit.
| 12 | | "Construction" means any constructing, altering, | 13 | | reconstructing, repairing, rehabilitating, refinishing, | 14 | | refurbishing, remodeling, remediating, renovating, custom | 15 | | fabricating, maintaining, landscaping, improving, drilling, | 16 | | testing, moving, wrecking, painting, decorating, demolishing, | 17 | | and adding to or subtracting from any building, structure, | 18 | | highway, roadway, street, bridge, alley, sewer, ditch, water | 19 | | works, parking facility, railroad, excavation or other | 20 | | structure, project, development, real property or improvement, | 21 | | or to do any part thereof, whether or not the performance of | 22 | | the construction involves the addition to, or fabrication into, | 23 | | any structure, project, development, real property or |
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| 1 | | improvement herein described performed or done on behalf of an | 2 | | operator in connection with and at the location of a well site | 3 | | subject to the tax imposed by this Act.
| 4 | | "Construction worker" means a person performing | 5 | | construction.
| 6 | | "Department" means the Illinois Department of Revenue. | 7 | | "Fracturing" or "hydraulic fracturing" means the | 8 | | propagation of fractures in a rock layer, by a pressurized | 9 | | fluid used to release petroleum or natural gas (including shale | 10 | | gas, tight gas, and coal seam gas), for extraction. | 11 | | "Gas" means natural gas taken from below the surface of the | 12 | | earth or water in this State, regardless of whether the gas is | 13 | | taken from a gas well or from a well also productive of oil or | 14 | | any other product. | 15 | | "General prevailing rate of hourly wages" has the meaning | 16 | | ascribed to it in Section 2 of the Prevailing Wage Act, as | 17 | | determined by the Director of the Department of Labor under | 18 | | Section 9 of the Prevailing Wage Act for the county in which | 19 | | the construction occurs.
| 20 | | "Illinois construction worker" means a construction | 21 | | worker, as defined in this Section, domiciled in Illinois for | 22 | | 60 24 months prior to the date of the issuance of a high volume | 23 | | horizontal hydraulic fracturing permit for the well site on | 24 | | which the construction is performed.
| 25 | | "Lease number" means the number assigned by the purchaser | 26 | | to identify each production unit. |
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| 1 | | "Oil" means petroleum or other crude oil, condensate, | 2 | | casinghead gasoline, or other mineral oil that is severed or | 3 | | withdrawn from below the surface of the soil or water in this | 4 | | State. | 5 | | "Operator" means the person primarily responsible for the | 6 | | management and operation of oil or gas productions from a | 7 | | production unit. | 8 | | "Person" means any natural individual, firm, partnership, | 9 | | association, joint stock company, joint adventure, public or | 10 | | private corporation, limited liability company, or a receiver, | 11 | | executor, trustee, guardian, or other representative appointed | 12 | | by order of any court. | 13 | | "Producer" means any person owning, controlling, managing, | 14 | | or leasing any oil or gas property or oil or gas well, and any | 15 | | person who severs in any manner any oil or gas in this State, | 16 | | and shall include any person owning any direct and beneficial | 17 | | interest in any oil or gas produced, whether severed by such | 18 | | person or some other person on their behalf, either by lease, | 19 | | contract, or otherwise, including working interest owners, | 20 | | overriding royalty owners, or royalty owners. | 21 | | "Production unit" means a unit of property designated by | 22 | | the Department of Natural Resources from which oil or gas is | 23 | | severed.
| 24 | | "Purchaser" means a person who is the first purchaser of a | 25 | | product after severance from a production unit. | 26 | | "Remove" or "removal" means the physical transportation of |
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| 1 | | oil or gas off of the production unit where severed; and if the | 2 | | oil or gas is used on the premises where severed, or if the | 3 | | manufacture or conversion of oil or gas into refined products | 4 | | occurs on the premises where severed, oil or gas shall be | 5 | | deemed to have been removed on the date such use, manufacture, | 6 | | or conversion begins. | 7 | | "Severed" or "severing" means: (1) the production of oil | 8 | | through extraction or withdrawal of the same, whether such | 9 | | extraction or withdrawal is by natural flow, mechanical flow, | 10 | | forced flow, pumping, or any other means employed to get the | 11 | | oil from below the surface of the soil or water and shall | 12 | | include the withdrawal by any means whatsoever of oil upon | 13 | | which the tax has not been paid, from any surface reservoir, | 14 | | natural or artificial, or from a water surface; and (2) the | 15 | | production of gas through the extraction or withdrawal of the | 16 | | same by any means whatsoever, from below the surface of the | 17 | | earth or water. | 18 | | "Severance" means the taking of oil or gas from below the | 19 | | surface of the soil or water in any manner whatsoever. | 20 | | "Total workforce hours" means all hours worked by | 21 | | construction workers on a well site, beginning on the date an | 22 | | application for a permit to perform high volume horizontal | 23 | | hydraulic fracturing operations at the well is filed under | 24 | | Section 1-35 of the Hydraulic Fracturing Regulatory Act and | 25 | | ending on the date of first production following initial | 26 | | drilling or any reworking of the well. |
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| 1 | | "Value" means the sale price of oil or gas at the time of | 2 | | removal of the oil or gas from the production unit and if oil | 3 | | or gas is exchanged for something other than cash, or if no | 4 | | sale occurs at the time of removal, or if the Department | 5 | | determines that the relationship between the buyer and the | 6 | | seller is such that the consideration paid, if any, is not | 7 | | indicative of the true value or market price, then the | 8 | | Department shall determine the value of the oil or gas subject | 9 | | to tax based on the cash price paid to one or more producers | 10 | | for the oil or gas or based on the cash price paid to producers | 11 | | for like quality oil or gas in the vicinity of the production | 12 | | unit at the time of the removal of the oil or gas from the | 13 | | production unit.
| 14 | | "Well site" has the meaning ascribed to the term in Section | 15 | | 1-5 of the Hydraulic Fracturing Regulatory Act.
| 16 | | "Working interest" means any interest in or any right to | 17 | | the production of oil and gas, excluding royalty or overriding | 18 | | royalty interests.
| 19 | | (Source: P.A. 98-22, eff. 6-17-13.)
| 20 | | Section 99. Effective date. This Act takes effect upon | 21 | | becoming law.
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