Introduced Version
House Bill 3051 History
| Email
Key: Green = existing Code. Red = new code to be enacted
H. B. 3051
(By Delegate Boggs)
[Introduced March 22, 2013; referred to the
Committee on the Judiciary then Finance.]
A BILL to amend the Code of West Virginia, 1931, as amended, by
adding thereto a new section, designated §22-6-42, relating to
fees charged for natural gas drilling waste fluids injected
into
underground injection control well
s; requiring record
keeping; defining a term; providing criminal penalties;
setting forth how the proceeds from the fees may be used; and
authorizing rulemaking.
Be it enacted by the Legislature of West Virginia:
That the Code of West Virginia, 1931, as amended, be amended
by adding thereto a new section, designated §22-6-42, to read as
follows:
ARTICLE 6. OFFICE OF OIL AND GAS; OIL AND GAS WELLS;
ADMINISTRATION; ENFORCEMENT.
§22-6-42. Underground injection control well waste assessment __fee; penalties.
_(a) Imposition of fee. -- An underground injection control
well fee is levied and imposed upon the disposal of waste from
natural gas drilling operations at any underground injection
control well in this state in the amount of:
_(1) Five cents per forty-two gallon barrel, or like ratio of
any part of a barrel, of waste that is delivered to a well to be
injected in the well when the waste is produced within the state,
except as provided in subsection (e) of this section; and
_(2) Twenty cents per forty-two gallon barrel, or like ratio of
any part of a barrel, of waste that is delivered to a well to be
injected in the well when the waste is produced outside the state,
except as provided in subsection (e) of this section.
_The fee imposed by this section is in addition to all other
fees and taxes levied by law and shall be added to and constitute
part of any other fee charged by the operator or owner of the
underground injection control well.
_(b) Collection, return, payment and records. -- The person or
entity injecting the waste from natural gas drilling operations at
the underground injection control well shall pay the fee imposed by
this section, whether or not that person or entity owns the waste
from natural gas drilling operations, to the Tax Commissioner:
_(1) The fee imposed by this section accrues at the time the
waste is delivered to the underground injection control well;
_(2) The operator shall remit the fee imposed by this section
to the Tax Commissioner on or before the fifteenth day of the month
next succeeding the month in which the fee accrued. When remitting
the fee, the operator shall file returns on forms and in the manner
prescribed by the Tax Commissioner;
_(3) The operator shall account to the state for all fees
collected under this section and shall hold them in trust for the
state until they are remitted to the Tax Commissioner;
_(4) If any operator fails to collect the fee imposed by this
section, he or she is personally liable for the amount he or she
failed to collect, plus applicable additions to tax, penalties and
interest imposed by article ten, chapter eleven of this code;
_(5) Whenever any operator fails to collect, truthfully account
for, remit the fee or file returns with the fee as required in this
section, the Tax Commissioner may serve written notice requiring
the operator to collect the fees which become collectible after
service of the notice, to deposit the fees in a bank approved by
the Tax Commissioner, in a separate account, in trust for and
payable to the Tax Commissioner, and to keep the amount of the fees
in the account until remitted to the Tax Commissioner. The notice
shall remain in effect until a notice of cancellation is served on
the operator or owner by the Tax Commissioner;
_(6) Whenever the owner of an underground injection control
well leases the underground injection control well to an operator, the operator is primarily liable for collection and remittance of
the fee imposed by this section and the owner is secondarily liable
for remittance of the fee imposed by this section. However, if the
operator fails, in whole or in part, to discharge his or her
obligations under this section, the owner and the operator of the
underground injection control well are jointly and severally
responsible and liable for compliance with this section;
_(7) If the operator or owner responsible for collecting the
fee imposed by this section is an association or corporation, the
officers of the association or corporation are liable, jointly and
severally, for any default on the part of the association or
corporation, and payment of the fee and any additions to tax,
penalties and interest imposed by article ten, chapter eleven of
this code may be enforced against them as against the association
or corporation which they represent; and
_(8) Each person disposing of waste from natural gas drilling
operations at an underground injection control well and each person
required to collect the fee imposed by this section shall keep
complete and accurate records in the form required by the Tax
Commissioner in accordance with the rules of the Tax Commissioner.
_(c) Definitions. -- For purposes of this section, the term
"underground injection control well" means any shaft or hole sunk,
drilled, bored or dug into the earth or into underground strata for
the injection or placement of any liquid or gas, or any shaft or hole sunk or used in conjunction with such injection or placement.
The term "well" does not include any shaft or hole sunk, drilled,
bored or dug into the earth for the sole purpose of core drilling
or pumping or extracting therefrom potable, fresh or usable water
for household, domestic, industrial, agricultural or public use.
_(d) Procedure and administration. -- Notwithstanding section
three, article ten, chapter eleven of this code, all other
provisions of the "West Virginia Tax Procedure and Administration
Act" as set forth in article ten, chapter eleven of this code apply
to the fee imposed by this section with like effect as if the act
were applicable only to the fee imposed by this section and were
set forth in extenso in this section.
_(e) Criminal penalties. -- Notwithstanding section two,
article nine, chapter eleven of this code, sections three through
seventeen, article nine, chapter eleven of this code apply to the
fee imposed by this section with like effect as if the sections
were applicable only to the fee imposed by this section and were
set forth in extenso in this section.
_(f) Dedication of proceeds. -- The proceeds of the fees
collected pursuant to this article from any underground injection
control well pursuant shall be remitted, at least monthly, to the
county commission in the county in which the underground injection
control well is located. The county commission may use these
proceeds only for infrastructure and/or recreation projects.
_(g) Rule making. -- The secretary and Tax Commissioner are
authorized to propose rules for legislative approval in accordance
with article three, chapter twenty-nine-a of this code necessary to
effectuate this section.
NOTE: The purpose of this bill is to create an underground
injection control well assessment fee for operators injecting waste
from natural gas drilling operations. The bill requires record
keeping, defines a term, provides criminal penalties and authorizes
rule making. The bill requires the proceeds from the fee collected
by the tax department to be remitted to the county commission of
the county in which the underground injection control well is
located. The bill permits the county commissions to use the
proceeds from the fees for only infrastructure and/or recreation
projects.
This section is new; therefore, it has been completely
underscored.