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1 | AN ACT concerning revenue.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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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)
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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.
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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.
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4 | "Construction worker" means a person performing | ||||||
5 | construction.
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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.
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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.
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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.
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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.
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14 | "Well site" has the meaning ascribed to the term in Section | ||||||
15 | 1-5 of the Hydraulic Fracturing Regulatory Act.
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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.
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19 | (Source: P.A. 98-22, eff. 6-17-13.)
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20 | Section 99. Effective date. This Act takes effect upon | ||||||
21 | becoming law.
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