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As Introduced
122nd General Assembly
Regular Session
1997-1998 | S. B. No. 46 |
SENATORS CARNES-DIX
A BILL
To enact sections 1509.50 to 1509.54 of the Revised Code to
create the Ohio Oil and Natural Gas Resources Agency to conduct
specified activities regarding the oil and natural gas industry
and to levy an assessment on oil and natural gas production to
pay for those activities, and to terminate the provisions of
this act on December 31, 2000, by repealing sections 1509.50,
1509.51, 1509.52, 1509.53, and 1509.54 of the Revised Code on
that date.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1. That sections 1509.50, 1509.51, 1509.52, 1509.53,
and 1509.54 of the Revised Code be enacted to read as follows:
Sec. 1509.50. AS USED IN SECTIONS 1509.50 TO 1509.54 OF
THE REVISED
CODE:
(A) "FIRST PURCHASER"
MEANS:
(1) WITH REGARD TO CRUDE OIL, THE PERSON TO WHOM TITLE
FIRST IS TRANSFERRED BEYOND THE GATHERING TANK OR TANKS, BEYOND
THE FACILITY FROM WHICH THE CRUDE OIL WAS FIRST PRODUCED, OR
BOTH;
(2) WITH REGARD TO NATURAL GAS, THE PERSON TO WHOM TITLE
FIRST IS TRANSFERRED BEYOND THE INLET SIDE OF THE MEASUREMENT
STATION FROM WHICH THE NATURAL GAS WAS FIRST PRODUCED.
(B) "INDEPENDENT
PRODUCER" MEANS A PERSON WHO COMPLIES WITH BOTH OF THE FOLLOWING:
(1) THE PERSON PRODUCES OIL OR NATURAL GAS AND IS
NOT ENGAGED IN REFINING EITHER PRODUCT.
(2) THE PERSON DERIVES A MAJORITY
OF THE PERSON'S INCOME FROM OWNERSHIP IN PROPERTIES PRODUCING OIL OR NATURAL
GAS.
(C) "QUALIFIED
INDEPENDENT PRODUCER ASSOCIATION" MEANS AN ASSOCIATION THAT
COMPLIES WITH ALL OF THE FOLLOWING:
(1) IT IS IN EXISTENCE ON THE EFFECTIVE DATE OF THIS
SECTION.
(2) IT IS ORGANIZED AND OPERATING WITHIN THIS
STATE.
(3) A MAJORITY OF THE MEMBERS OF ITS GOVERNING BODY ARE
INDEPENDENT PRODUCERS.
Sec. 1509.51. THERE
IS HEREBY CREATED THE OHIO OIL
AND NATURAL GAS RESOURCES AGENCY CONSISTING OF SEVEN MEMBERS.
SIX OF THE MEMBERS SHALL BE INDEPENDENT PRODUCERS. OF THOSE
MEMBERS, TWO SHALL BE APPOINTED BY THE GOVERNOR, TWO SHALL BE
APPOINTED BY THE PRESIDENT OF THE SENATE, AND TWO SHALL BE
APPOINTED BY THE SPEAKER OF THE HOUSE OF REPRESENTATIVES. THE
APPOINTING AUTHORITIES SHALL SELECT THEIR APPOINTEES FROM LISTS
OF NAMES SUBMITTED BY QUALIFIED INDEPENDENT PRODUCER
ASSOCIATIONS. EACH MEMBER WHO IS AN INDEPENDENT PRODUCER SHALL
BE AT LEAST TWENTY-FIVE YEARS OLD, BE A RESIDENT OF THIS STATE,
AND HAVE AT LEAST FIVE YEARS OF ACTIVE EXPERIENCE IN THE OIL AND
NATURAL GAS INDUSTRY.
THE SEVENTH MEMBER SHALL BE A MEMBER OF THE
OHIO FARM BUREAU FEDERATION AND
SHALL BE APPOINTED BY THE GOVERNOR. THE GOVERNOR SHALL SELECT
THAT MEMBER FROM A LIST SUBMITTED BY THE FEDERATION.
THE APPOINTING AUTHORITIES SHALL MAKE THEIR INITIAL
APPOINTMENTS NOT LATER THAN NINETY DAYS AFTER THE EFFECTIVE DATE
OF THIS SECTION. OF THOSE APPOINTMENTS, THE GOVERNOR SHALL
APPOINT ONE MEMBER FOR A TERM OF ONE YEAR, ONE MEMBER FOR A TERM
OF TWO YEARS, AND ONE MEMBER FOR A TERM OF THREE YEARS; THE
PRESIDENT OF THE SENATE SHALL APPOINT ONE MEMBER FOR A TERM OF
TWO YEARS AND ONE MEMBER FOR A TERM OF THREE YEARS; AND THE
SPEAKER OF THE HOUSE OF REPRESENTATIVES SHALL APPOINT ONE MEMBER
FOR A TERM OF ONE YEAR AND ONE MEMBER FOR A TERM OF THREE YEARS. THEREAFTER,
TERMS OF OFFICE SHALL BE FOR THREE YEARS WITH EACH
TERM ENDING ON THE SAME DAY OF THE SAME MONTH AS DID THE TERM
THAT IT SUCCEEDS.
EACH MEMBER SHALL HOLD OFFICE FROM THE DATE OF THE
MEMBER'S APPOINTMENT UNTIL THE END OF THE TERM FOR WHICH THE
MEMBER WAS APPOINTED. MEMBERS MAY BE REAPPOINTED. VACANCIES
SHALL BE FILLED IN THE MANNER PROVIDED FOR ORIGINAL APPOINTMENTS. ANY MEMBER
APPOINTED TO FILL A VACANCY OCCURRING PRIOR TO THE
EXPIRATION OF THE TERM FOR WHICH THE MEMBER'S PREDECESSOR WAS
APPOINTED SHALL HOLD OFFICE FOR THE REMAINDER OF THAT TERM. A
MEMBER SHALL CONTINUE IN OFFICE SUBSEQUENT TO THE EXPIRATION OF
THE MEMBER'S TERM UNTIL THE MEMBER'S SUCCESSOR TAKES OFFICE OR UNTIL A
PERIOD OF SIXTY DAYS HAS ELAPSED, WHICHEVER OCCURS FIRST. AN
APPOINTING AUTHORITY MAY REMOVE A MEMBER APPOINTED BY THAT
APPOINTING AUTHORITY FOR MISFEASANCE, NONFEASANCE, OR
MALFEASANCE IN OFFICE.
THE GOVERNOR SHALL CALL THE INITIAL MEETING OF THE AGENCY. THEREAFTER, THE
AGENCY SHALL HOLD REGULAR QUARTERLY
MEETINGS EACH YEAR. SPECIAL MEETINGS MAY BE HELD AT THE REQUEST
OF THE CHAIRPERSON OR A MAJORITY OF THE MEMBERS. THE
CHAIRPERSON, AND OTHER OFFICERS CONSIDERED NECESSARY, SHALL BE
SELECTED ANNUALLY BY MEMBERS OF THE AGENCY DURING THE FIRST
MEETING OF THE CALENDAR YEAR. A MAJORITY OF THE MEMBERS
CONSTITUTE A QUORUM.
MEMBERS SHALL RECEIVE NO COMPENSATION, BUT MAY BE
REIMBURSED FOR THEIR ACTUAL AND NECESSARY EXPENSES INCURRED IN
THE PERFORMANCE OF THEIR DUTIES AS MEMBERS OF THE AGENCY.
Sec. 1509.52. (A) THE
PURPOSES OF THE OHIO OIL AND
NATURAL GAS RESOURCES AGENCY ARE TO COORDINATE A PROGRAM THAT
DEMONSTRATES TO THE GENERAL PUBLIC THE IMPORTANCE AND ECONOMIC
SIGNIFICANCE OF THE OIL AND NATURAL GAS INDUSTRY IN THIS STATE,
TO ENCOURAGE THE WISE AND EFFICIENT USE OF ENERGY, TO PROMOTE
ENVIRONMENTALLY SOUND PRODUCTION METHODS AND TECHNOLOGIES IN THE
INDUSTRY, AND TO SUPPORT RESEARCH AND EDUCATIONAL ACTIVITIES
CONCERNING THE INDUSTRY.
(B) IN ORDER TO
ACCOMPLISH ITS PURPOSES, THE AGENCY SHALL DO ALL OF THE
FOLLOWING:
(1) ADMINISTER AND ENFORCE SECTIONS 1509.50 TO 1509.54 OF
THE REVISED CODE;
(2) ADOPT RULES IN ACCORDANCE WITH
CHAPTER 119. OF THE REVISED CODE NECESSARY TO
ADMINISTER AND ENFORCE THOSE SECTIONS;
(3) MAINTAIN AN OFFICE AT A LOCATION THAT IT DESIGNATES
IN THE STATE;
(4) EMPLOY AND FIX THE COMPENSATION OF A DIRECTOR AND
OTHER EMPLOYEES NECESSARY TO ACCOMPLISH THE PURPOSES OF THE
AGENCY AND PRESCRIBE THEIR DUTIES;
(5) ADMINISTER THE OIL AND NATURAL GAS RESOURCES FUND
CREATED IN SECTION 1509.53 OF THE REVISED
CODE, INCLUDING, WITHOUT
LIMITATION, APPROVING OR DISAPPROVING THE INVESTMENT OF MONEYS
IN THE FUND IN ACCORDANCE WITH THAT SECTION;
(6) APPROVE OR DISAPPROVE THE BUDGET OF THE
AGENCY;
(7) KEEP ACCURATE RECORDS OF ALL FINANCIAL TRANSACTIONS
CONDUCTED UNDER SECTIONS 1509.50 TO 1509.54 OF THE
REVISED CODE, INCLUDING, WITHOUT
LIMITATION, THE COLLECTION OF ASSESSMENTS UNDER SECTION 1509.54
OF THE REVISED CODE.
(C) IN ORDER TO
ACCOMPLISH ITS PURPOSES, THE AGENCY MAY DO ANY OR ALL OF THE
FOLLOWING:
(1) ENTER INTO CONTRACTS AND AGREEMENTS FOR STUDIES,
RESEARCH PROJECTS, EXPERIMENTAL WORK, SUPPLIES, AND OTHER
SERVICES AND INCUR NECESSARY EXPENSES. THE DIRECTOR OF THE
AGENCY SHALL DEVELOP AND SUBMIT TO THE AGENCY A PLAN OR
PROPOSAL, TOGETHER WITH A BUDGET OR BUDGETS SHOWING ESTIMATED
COSTS TO BE INCURRED FOR THE PLAN OR PROPOSAL, FOR EACH CONTRACT
OR AGREEMENT. ANY PERSON ENTERING INTO A CONTRACT OR AGREEMENT
WITH THE AGENCY SHALL KEEP ACCURATE RECORDS OF ITS TRANSACTIONS,
ACCOUNT FOR MONEYS RECEIVED FROM THE AGENCY AND EXPENDED, AND
MAKE PERIODIC REPORTS TO THE AGENCY OF ACTIVITIES CONDUCTED
UNDER THE CONTRACT OR AGREEMENT AND OTHER REPORTS REQUIRED BY
THE AGENCY.
(2) COOPERATE WITH ANY PRIVATE, LOCAL, STATE, OR NATIONAL
COMMISSION, ORGANIZATION, OFFICE, OR OTHER GROUP AND ENTER INTO
CONTRACTS AND AGREEMENTS FOR JOINT PROGRAMS BENEFICIAL TO THE
OIL AND NATURAL GAS INDUSTRY;
(3) ACCEPT DONATIONS, GRANTS, CONTRIBUTIONS, AND GIFTS
FROM ANY PUBLIC OR PRIVATE SOURCE AND DEPOSIT THEM IN THE OIL
AND NATURAL GAS RESOURCES FUND.
(D) NOTHING IN SECTIONS 1509.50 TO 1509.54 OF THE
REVISED CODE SHALL BE CONSTRUED TO
PREEMPT OR SUPERSEDE ANY OTHER PROGRAM RELATING TO OIL AND
NATURAL GAS PROMOTION OR MARKETING THAT IS ORGANIZED AND
OPERATED UNDER THE LAWS OF THIS STATE OR UNDER FEDERAL
LAWS.
Sec. 1509.53. (A) THERE
IS HEREBY CREATED THE OIL AND NATURAL GAS RESOURCES FUND, WHICH
SHALL BE IN THE CUSTODY OF THE TREASURER OF STATE, BUT SHALL
NOT BE PART OF THE STATE TREASURY. THE FUND SHALL CONSIST OF
MONEYS COLLECTED FROM THE ASSESSMENT LEVIED UNDER SECTION
1509.54 OF THE REVISED CODE, ALL DONATIONS, GRANTS,
CONTRIBUTIONS, AND GIFTS RECEIVED BY THE OHIO OIL AND NATURAL GAS
RESOURCES AGENCY UNDER DIVISION (C)(3) OF SECTION 1509.52 OF THE
REVISED CODE, AND ALL INVESTMENT EARNINGS OF THE FUND
PURSUANT TO DIVISION (B) OF THIS SECTION.
(B) THE AGENCY MAY INVEST MONEYS IN THE FUND ONLY IN ANY OF THE
FOLLOWING:
(1) BONDS OR OTHER INTEREST-BEARING OBLIGATIONS OF OR
GUARANTEED BY THE UNITED STATES OR FOR WHICH THE CREDIT OF
THE UNITED STATES IS PLEDGED FOR THE PAYMENT OF PRINCIPAL
AND INTEREST;
(2) BONDS OR OTHER INTEREST-BEARING OBLIGATIONS ISSUED BY
ANY FEDERAL OFFICE ESTABLISHED BY AN ACT OF THE
UNITED
STATES CONGRESS;
(3) GENERAL OBLIGATIONS OF ANY STATE, PROVIDED THAT
OBLIGATIONS OF ANOTHER STATE, AT THE TIME OF INVESTMENT, ARE
RATED IN ONE OF THE FOUR HIGHEST GRADES AS SHOWN BY THE MOST
RECENT CURRENT PUBLICATION OF A NATIONALLY RECOGNIZED INVESTMENT
RATING SERVICE;
(4) SAVINGS ACCOUNTS OR CERTIFICATES OF DEPOSIT OF A
NATIONAL BANK, STATE BANK, OR SAVINGS AND LOAN ASSOCIATION,
PROVIDED THAT THE ACCOUNTS OR CERTIFICATES ARE INSURED BY ANY OF
THE AGENCIES OR INSTRUMENTALITIES CREATED UNDER THE
"FEDERAL DEPOSIT INSURANCE ACT," 64
STAT. 873 (1950), 12 U.S.C.A.
1811, AS AMENDED, AND REGULATIONS ADOPTED UNDER IT, INCLUDING,
WITHOUT LIMITATION, THE FEDERAL DEPOSIT INSURANCE CORPORATION,
BANK INSURANCE FUND, AND SAVINGS ASSOCIATION INSURANCE
FUND.
(C) THE AGENCY SHALL
EXPEND MONEYS IN THE FUND SOLELY FOR THE PURPOSES OF SECTIONS
1509.50 TO 1509.54 OF THE REVISED CODE. THE TREASURER OF
STATE SHALL DISBURSE MONEYS FROM THE FUND ON ORDER OF THE AGENCY.
Sec. 1509.54. (A) THERE
IS HEREBY LEVIED AN ASSESSMENT OF ONE CENT PER EACH GROSS BARREL
OF OIL AND ONE-TENTH OF ONE CENT PER THOUSAND CUBIC FEET OF
NATURAL GAS PRODUCED IN THIS STATE. THE FIRST PURCHASER OF THE
GROSS PRODUCTION OF OIL OR NATURAL GAS, AS APPROPRIATE, SHALL
DEDUCT THE AMOUNT OF THE ASSESSMENT FROM THE PROCEEDS OF THE
GROSS PRODUCTION WHEN COMPENSATING THE PRODUCER OR ROYALTY
OWNER.
THE FIRST PURCHASER SHALL REMIT THE ASSESSMENT TO THE
OHIO OIL AND NATURAL GAS
RESOURCES AGENCY FOR DEPOSIT IN THE OIL AND NATURAL GAS
RESOURCES FUND CREATED IN SECTION 1509.53 OF THE
REVISED CODE. THE FIRST PURCHASER
SHALL REMIT THE ASSESSMENT IN ACCORDANCE WITH THE REQUIREMENTS
ESTABLISHED, AND USING FORMS PRESCRIBED, IN RULES ADOPTED UNDER
DIVISION (B)(2) OF SECTION
1509.52 OF THE REVISED CODE. THE ASSESSMENT SHALL BE
REMITTED NOT LATER THAN FORTY-FIVE DAYS AFTER THE END OF EACH
CALENDAR QUARTER, WITH THE QUARTERS ENDING ON THE THIRTY-FIRST
DAY OF MARCH, THE THIRTIETH DAY OF JUNE, THE THIRTIETH DAY
OF SEPTEMBER, AND THE THIRTY-FIRST DAY OF DECEMBER.
HOWEVER, CUMULATIVE AMOUNTS OF NOT MORE THAN TWENTY-FIVE DOLLARS MAY BE
REMITTED ANNUALLY, NOT LATER THAN FORTY-FIVE DAYS AFTER THE THIRTY-FIRST DAY
OF DECEMBER.
THE AGENCY MAY TAKE APPROPRIATE LEGAL ACTIONS TO COLLECT
AN ASSESSMENT THAT HAS NOT BEEN PAID OR THAT HAS NOT BEEN PAID
IN ACCORDANCE WITH THE REQUIREMENTS ESTABLISHED IN RULES ADOPTED
UNDER DIVISION (B)(2) OF SECTION 1509.52 OF THE REVISED
CODE, INCLUDING, WITHOUT LIMITATION, RECOVERY OF THE AMOUNT ASSESSED,
TOGETHER WITH INTEREST, BY SUIT BEFORE A COURT OF COMPETENT JURISDICTION.
(B) A PERSON WHO IS
SUBJECT TO THE ASSESSMENT LEVIED UNDER DIVISION
(A) OF THIS SECTION MAY REQUEST
A REFUND OF THE AMOUNT OF THE ASSESSMENT PAID BY THAT PERSON ON
THE PRODUCTION OF OIL OR NATURAL GAS DURING THE PRECEDING
CALENDAR YEAR. THE PERSON HAS THE BURDEN OF PROVING THAT THE
PERSON IS ENTITLED TO A REFUND.
THE AGENCY SHALL REFUND TO THE PERSON THE AMOUNT OF THE
ASSESSMENT PAID DURING THE PRECEDING CALENDAR YEAR IF THE PERSON
REQUESTING THE REFUND COMPLIES WITH THE PROCEDURES AND
REQUIREMENTS GOVERNING REFUNDS THAT ARE ESTABLISHED IN RULES
ADOPTED UNDER DIVISION (B)(2) OF SECTION 1509.52 OF THE
REVISED CODE AND PROVES THAT THE PERSON IS ENTITLED TO A
REFUND.
A PERSON WHO REQUESTS A REFUND UNDER THIS DIVISION IS NOT
ELIGIBLE TO SERVE OR TO HAVE A REPRESENTATIVE SERVE AS A MEMBER
OF THE AGENCY.
(C) IF A NATIONAL
PROGRAM FOR AN ASSESSMENT ON OIL AND NATURAL GAS PRODUCTION IS
ESTABLISHED, THE AGENCY, BY A MAJORITY VOTE, MAY DESIGNATE NOT
MORE THAN FIFTY PER CENT OF THE MONEYS COLLECTED UNDER DIVISION
(A) OF THIS SECTION FOR PAYMENT
TO THAT NATIONAL PROGRAM IN LIEU OF ANY ASSESSMENT THAT IS
REQUIRED BY THAT PROGRAM.
Section 2. Sections 1509.50, 1509.51, 1509.52, 1509.53, and
1509.54 of the Revised Code are hereby repealed, effective
December 31, 2000.
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