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92nd General Assembly

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Public Act 92-0610

SB1649 Enrolled                                LRB9212700LBpr

    AN ACT concerning petroleum marketing.

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

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

    (225 ILCS 728/5)
    (Section scheduled to be repealed on January 1, 2008)
    Sec. 5.  Definitions.  As used in this Act:
    "Board" means the Illinois Petroleum Resources Board.
    "Interest  owner" means a person who owns or possesses an
interest in the gross production of oil or gas produced  from
a well in Illinois.
    "Person"  means  an  individual,  group  of  individuals,
partnership,   corporation,  association,  limited  liability
company, cooperative, or any other entity or an  employee  of
the entity.
    "Producer" means a person who produces oil and gas or who
derives  a  majority  of  his  or her oil and gas income from
working interest.
    "Qualified producer association" means an entity that  is
organized  and operating within the State and that represents
oil producers on a Statewide basis.
(Source: P.A. 90-614, eff. 7-10-98.)

    (225 ILCS 728/10)
    (Section scheduled to be repealed on January 1, 2008)
    Sec. 10.  Illinois Petroleum Resources Board.
    (a)  There is hereby created until January July  1,  2008
2002,  the  Illinois Petroleum Resources Board which shall be
subject to the provisions of  the  Regulatory  Agency  Sunset
Act.   The  purpose  of  the Board is to coordinate a program
designed to demonstrate to the general public the  importance
of  the  Illinois oil exploration and production industry, to
encourage the wise and efficient use of  energy,  to  promote
environmentally sound production methods and technologies, to
develop  existing  supplies  of  State  oil resources, and to
support research and educational  activities  concerning  the
oil exploration and production industry.
    (b)  The  Board  shall  be  composed  of 12 members to be
appointed  by  the  Governor.   The   Governor   shall   make
appointments  from  a  list  of  names submitted by qualified
producer associations, of which  10  shall  be  oil  and  gas
producers.
    (c)  A member of the Board shall:
         (1)  be at least 25 years of age;
         (2)  be a resident of the State of Illinois; and
         (3)  have  at  least 5 years of active experience in
    the oil industry.
    (d)  Members shall serve for a term of  3  years,  except
that  of  the initial appointments, 4 members shall serve for
one year, 4 members for 2 years, and 4 members for 3 years.
    (e)  Vacancies shall be filled for the unexpired term  of
office in the same manner as the original appointment.
    (f)  The  Board shall, at its first meeting, elect one of
its members as chairperson, who shall preside  over  meetings
of the Board and perform other duties that may be required by
the Board.  The first meeting of the Board shall be called by
the Governor.
    (g)  No  member  of  the  Board shall receive a salary or
reimbursement for duties performed as a member of the  Board,
except that members are eligible to receive reimbursement for
travel expenses incurred in the performance of Board duties.
(Source: P.A. 90-614, eff. 7-10-98.)
    (225 ILCS 728/30)
    (Section scheduled to be repealed on January 1, 2008)
    Sec. 30.  Assessment on oil and gas production.
    (a)  To  fund  the  activities  of the Illinois Petroleum
Resources Board, an assessment shall be levied in the  amount
of  one-tenth of 1% of gross revenues of oil and gas produced
from each well in the State of Illinois.
    (b)  The assessment levied  by  subsection  (a)  of  this
Section shall be deducted from the proceeds of production and
collected  by  the  first purchaser. The assessment, which is
imposed on the interest owner producer, shall be remitted  to
the  Department  of  Revenue  by the first purchaser on a tax
return filed no  later  than  the  15th  day  of  each  month
following  the  end  of the month in which the assessment was
collected.  To defray the costs of receiving  and  depositing
the  assessments  levied  by  this Section, the Department of
Revenue shall  retain  $750  per  month  of  the  assessments
received   for   deposit   into   the   Tax   Compliance  and
Administration Fund.  The remaining moneys  received  by  the
Department  of  Revenue  pursuant  to  this  Section shall be
deposited into the  Illinois  Petroleum  Resources  Revolving
Fund.
    (c)  The   Board   shall   be   responsible   for  taking
appropriate legal actions to collect any assessment which  is
not paid or is not properly paid.
(Source: P.A. 90-614, eff. 7-10-98.)

    (225 ILCS 728/35)
    (Section scheduled to be repealed on January 1, 2008)
    Sec. 35.  Refunds.
    (a)  Any  person  subject  to  the  assessment  levied by
Section 30 of this Act may request a refund  as  provided  in
this  Section  of  the  assessment paid on production for the
preceding calendar year.  Upon compliance with the provisions
of this Section and rules adopted by the Board  to  implement
this   Section,   the  Board  shall  refund  to  each  person
requesting a refund the amount of the assessment paid  by  or
on  behalf  of the person during the preceding calendar year.
Refunds made to producers will include interest earned at the
rate equal to the average United States Treasury bill rate of
the  preceding  calendar  year  as  certified  by  the  State
Treasurer.
    (b)  The request for a refund of the assessment  paid  on
production  for  the  preceding  calendar  year  must be made
during the first 3 calendar  months  following  the  calendar
year for which the refund is requested.  Failure to request a
refund  during  this  period shall terminate the right of any
person to  receive  a  refund  for  the  assessment  paid  on
production  for the preceding calendar year.  The Board shall
give notice of the availability of the refund  through  press
releases or another means it deems appropriate.
    (c)  Each  person  requesting  a  refund shall execute an
affidavit  showing  the  amount  of  refund   requested   and
demonstrating  that the affiant was the interest owner of the
production for which the refund is requested.  The Board  may
verify the accuracy of the request for refund.
    (d)  No  entity  or person requesting a refund under this
Section shall be eligible to serve or have  a  representative
serve as a member of the Board.
(Source: P.A. 90-614, eff. 7-10-98.)

    Section  99.  Effective date.  This Act takes effect upon
becoming law.
    Passed in the General Assembly May 31, 2002.
    Approved July 01, 2002.
    Effective July 01, 2002.

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