Illinois Administrative Code › Title 86 - REVENUE › Part 475 - ILLINOIS HYDRAULIC FRACTURING TAX ACT › Section 475.105 - Definitions

Current through Register Vol. 48, No. 28, July 12, 2024
"Average daily production" means the average amount of oil
				produced daily from a well, as determined by Section 475.115.
"Barrel" for oil measurement means a barrel of 42 U.S.
				gallons of 231 cubic inches per gallon, computed at a temperature of 60 degrees
				Fahrenheit.
"Department" means the Illinois Department of
				Revenue.
"DNR" means the Illinois Department of Natural
				Resources.
"Fracturing" or "hydraulic fracturing" means the
				propagation of fractures in a rock layer, by a pressurized fluid used to
				release petroleum or natural gas (including shale gas, tight gas, and coal seam
				gas), for extraction.
"Gas" means natural gas taken from below the surface of
				the earth or water in this State, regardless of whether the gas is taken from a
				gas well or from a well also productive of oil or any other
				product.
"Lease number" means the number assigned by the
				purchaser to identify each production unit.
"Oil" means petroleum or other crude oil, condensate,
				casinghead gasoline, or other mineral oil that is severed or withdrawn from
				below the surface of the soil or water in this State.
"Operator" means the person primarily responsible for
				the management and operation of oil or gas productions from a production
				unit.
"Person" means any natural individual, firm,
				partnership, association, joint stock company, joint adventure, public or
				private corporation,
or
limited liability company, or a
				receiver, executor, trustee, guardian, or other representative appointed by
				order of any court.
"Produced" means severed.
"Producer" means any person owning, controlling,
				managing, or leasing any oil or gas property or oil or gas well, and any person
				who severs in any manner any oil or gas in this State, and shall include any
				person owning any direct and beneficial interest in any oil or gas produced,
				whether severed by that person or some other person on their behalf, either by
				lease, contract, or otherwise, including working interest owners, overriding
				royalty owners, or royalty owners.
"Production unit" means a unit of property designated
				by the Department of Natural Resources from which oil or gas is
				severed.
"Purchaser" means a person who is the first purchaser
				of a product after severance from a production unit.
"Regulatory Act" means the Hydraulic Fracturing Regulatory Act
				[ 225 ILCS 732 ].
"Remove" or "removal" means the physical transportation
				of oil or gas off of the production unit where severed; and if the oil or gas
				is used on the premises where severed, or if the manufacture or conversion of
				oil or gas into refined products occurs on the premises where severed, oil or
				gas shall be deemed to have been removed on the date that use, manufacture, or
				conversion begins.
"Severed" or "severing" means:
the production of oil through extraction or withdrawal
				of the same, whether that extraction or withdrawal is by natural flow,
				mechanical flow, forced flow, pumping, or any other means employed to get the
				oil from below the surface of the earth, soil, or water and shall include the
				withdrawal by any means whatsoever of oil upon which the tax has not been paid,
				from any surface reservoir, natural or artificial, or from a water surface;
				and
the production of gas through the extraction or
				withdrawal of the same by any means whatsoever, from below the surface of the
				earth, soil, or water.
"Severance" means the taking or severing of oil or gas
				from below the surface of the
earth
, soil, or water by any
				means or in any manner whatsoever.
"Tax" means the tax levied pursuant to the Tax Act.
"Tax Act" means the Illinois Hydraulic Fracturing Tax Act [ 35
				ILCS 450 ].
"Value" means the sale price of oil or gas at the time
				of removal of the oil or gas from the production unit and if oil or gas is
				exchanged for something other than cash, or if no sale occurs at the time of
				removal, or if the Department determines that the relationship between the
				buyer and the seller is such that the consideration paid, if any, is not
				indicative of the true value or market price, then the Department shall
				determine the value of the oil or gas subject to tax based on the cash price
				paid to one or more producers for the oil or gas or based on the cash price
				paid to producers for like quality oil or gas in the vicinity of the production
				unit at the time of the removal of the oil or gas from the production
				unit.
"Well" means the entire length of any drill hole, including all
				horizontal well bores, required to be permitted under the Illinois Oil and Gas
				Act [ 225 ILCS 725 ].
"Well site" has the meaning ascribed to that term in
				Section 1-5 of the Regulatory Act.
"Working interest" means any interest in or any right
				to the production of oil and gas, excluding royalty or overriding royalty
				interests.
[
				35 ILCS 450/2-10
				]