HB0306 - Crude oil and natural gas education act.

2001

State of Wyoming

01LSO-0538

HOUSE BILL NO. HB0306

Crude oil and natural gas education act.

Sponsored by: Representative(s) Parady, Childers and
Deegan and Senator(s) Coe and Kunz

A BILL

for

1 AN ACT relating to mines and minerals; providing for the
2 Wyoming Crude Oil and Natural Gas Education and Enhancement
3 Act as specified; providing definitions; providing for a
4 Wyoming crude oil and natural gas education and enhancement
5 council as specified; providing for membership, duties and
6 responsibilities; imposing a fee on qualified crude oil and
7 natural gas production as specified; providing for
8 administration and appropriation of the fee as specified;
9 providing for a sunset under specified conditions; and
10 providing for an effective date.

12 Be It Enacted by the Legislature of the State of Wyoming:

14 Section 1. W.S. 30-5-401 through 30-5-413 are created
15 to read:

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1 ARTICLE 4

2 WYOMING CRUDE OIL AND NATURAL GAS EDUCATION ENHANCEMENT ACT

4 30-5-401. Short title.

6 This act may be cited as the "Wyoming Crude Oil and Natural
7 Gas Education and Enhancement Act".

9 30-5-402. Definitions.

11 (a) For purposes of this act:

13 (i) "Consumer information" means data and other
14 material that will assist consumers and other persons in
15 making evaluations and decisions regarding the use of crude
16 oil and natural gas or that promote greater public
17 awareness of the economic, environmental and other
18 contributions of the domestic crude oil and natural gas
19 industry;

21 (ii) "Council" means the Wyoming crude oil and
22 natural gas education and enhancement council established
23 by this act;

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1 (iii) "Industry information" means data, other
2 material and programs that will lead to the development or
3 use of new or improved exploration and production
4 techniques, enhanced environmental protection, and
5 increased efficiency and productivity in the domestic crude
6 oil and natural gas industry, or that provide information
7 about current industry practices, employment opportunities,
8 regulations and taxation;

10 (iv) "Overriding royalty interest owner" means
11 any person, other than a governmental entity, who owns an
12 interest in crude oil and natural gas production, other
13 than the base royalty, but who does not participate in the
14 cost associated with operating and producing crude oil and
15 natural gas from the lease;

17 (v) "Person" means any individual, group of
18 individuals, or any partnership, corporation, association,
19 cooperative, or employee thereof, or any other
20 nongovernmental entity;

22 (vi) "Producer" means any person who produces
23 crude oil, condensate, casinghead gas or natural gas in
24 this state;

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2 (vii) "Promotion" means any action, including
3 paid advertising, to advance public awareness of the
4 economic, environmental and other contributions of the
5 domestic crude oil and natural gas industry;

7 (viii) "Qualified industry organizations" means
8 the various established state industry associations;

10 (ix) "Qualified production" means crude oil,
11 condensate, casinghead gas or natural gas, the proceeds
12 from which are owned by a royalty owner, working interest
13 owner, override royalty interest owner or producer;

15 (x) "Royalty owner" means any person, other than
16 a governmental or tribal entity, who owns an interest in
17 crude oil and natural gas production by virtue of the base
18 royalty of a crude oil and natural gas lease but who does
19 not participate in the costs associated with operating and
20 producing crude oil and natural gas from the lease;

22 (xi) "State industry association" means a
23 nonprofit organization exempt from tax, under section
24 501(c)(6) of the Internal Revenue Code of 1986, in

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1 existence as of January 1, 1999, and governed by a board, a
2 majority of which are producers, that represents the
3 domestic crude oil and natural gas industry on a statewide
4 basis;

6 (xii) "This act" means W.S. 30-5-401 through
7 30-5-413.

9 30-5-403. Wyoming crude oil and natural gas education
10 and enhancement council.

12 (a) There is established the Wyoming crude oil and
13 natural gas education and enhancement council that,
14 following the appointment of members by the governor,
15 speaker of the house and president of the senate, in the
16 manner prescribed by this act and through the exercise of
17 the powers provided herein, is authorized to create and
18 maintain an orderly procedure to fund and carry out a
19 coordinated program to promote energy education and greater
20 public awareness regarding the exploration, development and
21 efficient use of domestic crude oil and natural gas
22 resources, to remediate specified orphaned environmental
23 conditions for which there is no legal liability at
24 historical crude oil and natural gas production sites

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1 selected by the council, and for the other purposes set
2 forth in this act.

4 (b) The council shall consist of twelve (12) members.
5 The governor, speaker of the house and president of the
6 senate shall each appoint four (4) members, one (1)
7 representing a large producer, one (1) representing a small
8 producer, one (1) representing a royalty owner and one (1)
9 representing the public at large. Not more than one (1)
10 person from any company or affiliate of the company may
11 serve on the council at any given time. The terms of the
12 members shall be three (3) years, except each appointing
13 official shall make an initial appointment of one (1)
14 member for a term of three (3) years, one (1) member for a
15 term of two (2) years and one (1) member for a term of one
16 (1) year.

18 (c) Any vacancy in an unfinished term of a council
19 member shall be filled in the same manner as the original
20 appointment. Each member shall continue to serve until a
21 successor is appointed.

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1 (d) The members of the council shall serve without
2 compensation and shall not be reimbursed for expenses
3 incurred in performing their duties.

5 30-5-404. Powers and duties of the council.

7 (a) The council shall administer and enforce the
8 provisions of this act. The council shall promulgate rules
9 and regulations necessary for the implementation of the
10 provisions of this act.

12 (b) The council shall have the exclusive authority to
13 approve and set priorities for the expenditure of funds
14 collected under this act.

16 (c) The council may hire employees and enter into
17 contracts or agreements for the implementation of this act,
18 including programs to:

20 (i) Provide consumer information;

22 (ii) Enhance energy education;

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1 (iii) Improve public awareness of the role of
2 domestic crude oil and natural gas in the Wyoming and
3 United States economies;

5 (iv) Remediate orphaned environmental surface
6 conditions for which there is no legal liability at
7 historical crude oil and natural gas production sites in
8 Wyoming selected by the council. The council shall
9 coordinate these activities with the Wyoming oil and gas
10 conservation commission;

12 (v) Provide industry information; and

14 (vi) Provide information on technology and
15 production enhancement and other related materials.

17 30-5-405. Use of funds.

19 (a) The council may expend funds collected under W.S.
20 30-5-407 to implement the purposes of this act. The council
21 may allocate to qualified industry organizations up to
22 fifty percent (50%) of the funds collected under W.S.
23 30-5-407 to implement the purposes of this act.

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1 (b) The administrative expenses of operating the
2 council, excluding any costs incurred to enforce compliance
3 under W.S. 30-5-410 or processing and payment of refunds
4 under W.S. 30-5-409, shall not exceed ten percent (10%) of
5 the funds collected by the council in any fiscal year.

7 30-5-406. Administration.

9 (a) The council shall elect a chairman from its
10 members. The council may elect such officers as the council
11 deems necessary from its members. The council may establish
12 committees and subcommittees. The council may also
13 establish an advisory committee comprised of persons other
14 than council members.

16 (b) The council shall adopt rules and regulations for
17 the conduct of business and the implementation of this act.

19 (c) The council shall keep minutes, books and records
20 which clearly reflect the actions of the council which
21 shall be available to the public upon request. The council
22 shall have its books and financial records audited by a
23 certified public accountant at least once each fiscal year
24 and at such other times as the council may determine.

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1 Copies of the audit shall be provided to members of the
2 council and to qualified industry organizations.

4 (d) Meetings of the council shall be subject to the
5 public meetings law, W.S. 16-4-401 through 16-4-407.

7 (e) Each year the council shall prepare and make
8 available to the public a report which includes a
9 description of all programs and projects undertaken by the
10 council during the previous year and those planned for the
11 upcoming year. The report shall detail the allocation of
12 council resources for each program and project during the
13 previous year.

15 (f) The council may accept grants, donations,
16 contributions or gifts from any source for expenditure for
17 any purpose consistent with the powers and duties conferred
18 on the council by this act.

20 (g) Monies collected pursuant to this act shall be
21 deposited initially with the state treasurer and are
22 continuously appropriated to the council to invest and
23 expend in accordance with this act.

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1 30-5-407. Fees on qualified production.

3 (a) The council may impose and collect a fee on
4 qualified production in accordance with this section.

6 (b) The council shall impose a fee calculated on
7 qualified production at a rate not more than one-tenth of
8 one percent (.1%) of the taxable value from the first sale
9 of qualified production. By a majority vote of the council
10 members, the fee may be increased or decreased, provided
11 that the fee does not exceed the maximum rate of one-tenth
12 of one percent (.1%) of the taxable value from the first
13 sale of qualified production.

15 (c) Pursuant to rules and regulations adopted by the
16 council, the council shall rebate, in part, the fee paid on
17 qualified production when the fee exceeds one-half of one
18 percent (.5%) of a person's net operating income, if
19 requested by the producer.

21 (d) The fee shall be payable to the council on a
22 quarterly basis and in the manner prescribed by the
23 council. The fee shall be used to implement the provisions
24 of this act.

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2 (e) Any person remitting the gross production or
3 severance tax shall collect the fee on qualified production
4 and remit the fee to the council as provided by subsection
5 (d) of this section. The council may establish a late
6 payment charge and rate of interest to be imposed on any
7 person who fails to remit any amount due under this act.

9 30-5-408. Investment of funds.

11 (a) Pending disbursement pursuant to a program, plan
12 or project, the council may invest funds collected through
13 fees and any other funds received by the council in:

15 (i) Obligations of the United States or any
16 agency thereof;

18 (ii) General obligations of a state or political
19 subdivision of a state;

21 (iii) An interest bearing account or certificate
22 of deposit in amounts not exceeding the amounts insured by
23 the federal deposit insurance corporation or the federal

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1 savings and loan insurance corporation of a bank that is a
2 member of the federal reserve system;

4 (iv) Obligations fully guaranteed as to
5 principal and interest by the United States.

7 30-5-409. Refunds.

9 (a) Any person subject to the fee levied under this
10 act may request a refund, in whole or in part, of the fee
11 paid on qualified production owned by that person for the
12 preceding calendar year. If requested, the council shall
13 pay to each person making a timely request for a refund the
14 amount of the fee for qualified production owned by that
15 person and paid by or on behalf of the person during the
16 preceding calendar year and interest or such lesser amount
17 requested by the person.

19 (b) Refunds shall include interest earned at the rate
20 equal to the average United States treasury bill rate
21 during the preceding calendar year.

23 (c) Any request for a refund of the fee paid on
24 qualified production during the preceding calendar year

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1 shall be made during the first three (3) calendar months
2 following the calendar year for which the refund is
3 requested. Failure to request a refund during the period
4 prescribed by this subsection shall terminate the right of
5 any person to receive a refund for the fee paid on
6 production for the preceding calendar year.

8 (d) Any person requesting a refund shall execute an
9 affidavit showing the amount of refund requested and that
10 the affiant was the owner of the qualified production for
11 which the refund is requested. The council shall establish
12 criteria to verify the accuracy of the refund request.

14 (e) No person or company requesting a refund under
15 this section shall be eligible to serve or have a
16 representative serve as a member of the council.

18 30-5-410. Compliance.

20 The council may bring a civil action in any appropriate
21 district court of this state to compel compliance with this
22 act. A successful action for compliance under this section
23 may require payment by the defendant of the costs incurred
24 by the council in bringing the compliance action.

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2 30-5-411. Lobbying prohibited.

4 No funds collected by the council shall be used in any
5 manner to influence legislation or an election, but the
6 council may recommend to the legislature changes to this
7 act or other statutes which would further the purposes of
8 this act.

10 30-5-412. National plan.

12 Should a national plan substantially similar to the
13 provisions of this act be adopted by congress and become
14 law, the council shall coordinate this act with the
15 national act or recommend that the legislature repeal this
16 act by a majority vote of the council.

18 30-5-413. Sunset.

20 The authority granted under this act shall terminate if,
21 following three (3) years after the enactment of this act,
22 refunds paid under W.S. 30-5-409 exceed fifty percent (50%)
23 of the fees collected on qualified production for a period
24 of two (2) consecutive calendar years.

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2 Section 2. This act is effective July 1, 2001.

4 (END)

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