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HomeMy WebLinkAboutOrdinance #1388 1st READING TABLED 1/29/68 - Adj . Mtg. ORDINANCE NO. 1388 1 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH AMENDING CHAPTER 21 OF THE HUNTINGTON BEACH ORDINANCE CODE BY ADDING ARTICLE 215 AND SECTIONS THEREOF PROVIDING FOR THE IMPOSITION OF A LICENSE TAX UPON PERSONS ENGAGED IN THE BUSINESS OF PRODUCING OIL IN THE CITY OF HUNTINGTON BEACH, BASED UPON THE QUANTITY OF OIL PRODUCED AND SOLD The City Council of the City of Huntington Beach does ordain as follows: SECTION 1. That Article 215 is hereby added to Chapter 21 of the Huntington Beach Ordinance Code and shall read. in words and figures as follows: ARTICLE 215 OIL PRODUCTION LICENSE S . 2151. Oil Business - Non-Production. Every person conduct- ing, managing, carrying on or engaged in the business or activity of oil well, injection well, or water source well drilling or servicing operations, or refining oil or petroleum products and, producing the by-products, or marketing, selling, distributing at whole- sale, oil or any petroleum products, or by-products, or maintaining tankage or warehouse storage facilities where oil is kept for the purpose of wholesale distribution thereof shall pay the sum of Fifty Dollars ($50.00) per year, plus an additional sum per employee, in excess of two for the average number of individuals employed. by such person whose principal activities are within the City of Huntington Beach during the twelve months immediately preceding the Ahirty (30) days next preceding the due date of the license: From 3 to 100 employees, inclusive, $1.00 per employee For the next 400 employees, . 500 per employee For all employees over 500, . 250 per employee S . 2151. 1. A license issued pursuant to this section shall in- clude and permit the marketing, selling and distributing at wholesale, of automobile tires, batteries and. accessories . The payment of one license fee hereinabove provided in this section shall permit the engaging in any of the businesses or activities licensed. without payment of an additional license tax; provided, however, that nothing in this subsection shall be deemed to apply to or relate to actual oil production operations or to the operation of automobile filling stations . S . 2152. Oil Business Production. Every person conducting, managing, carrying on or engaged. in the business or activity of producing crude oil, gas, petroleum or other hydrocarbon substances or products from any well or wells located within the City of Huntington Beach shall p-py the sum or sums, in the manner and to the extent as hereinafter provided: (A) The sum, or sums, to be paid on a per fiscal basis, payable quarterly. (B) For the fiscal year commencing July 1, 1968, and for each succeeding fiscal year, there shall be paid in the manner hereinafter provided, on or before September 30, December 31, March 31, and June 30, respectively, an amount 2 - equaling two cents ($. 02) per quarter for each barrel of oil produced by each well in excess of three hundred (300) barrels per quarter. Production during the months of June, July and August shall constitute the measurement of the amount due on or before September 30 for the first quarter of a fiscal year; production during the months of September, October and November shall constitute the measurement of the amount due on or before December 31; production during the months of December, January and February shall constitute the measurement of the amount due on or before March 31; production during the months of March, April and May shall constitute the measurement of the amount due on or before June 30. The first of such payments shall be due and payable on or before September 30, 1968. (C) For the purpose of determining the per license tax: (1) A well is located within the City of Huntington Beach if the surface loca- tion of the well, the surface of the well itself, or if any portion of the - 3 - well is located within the City of Huntington Beach, irrespective of the subsurface location of the well, the producing interval thereof, or where the hole of the well may be bottomed. (2) A barrel of oil shall consist of forty-two (42) U. S . gallons of crude petroleum or hydrocarbon substances corrected for termperature variations in accordance with methods generally approved in the petroleum industry, petroleum or hydrocarbon substances mean crude oil remaining after the re=. moval therefrom of water or other impurities by preliminary processing in the vicinity of the well site, preparatory to the shipment thereof. (3) If oil produced from two or more wells shall be comingled without the production of the respective wells being separately measured, each well whose production has been comingled shall be considered as having pro- duced an equal part of the total. (D) Every person having a current prepaid. license to conduct, manage, carry on or engage in the business or activity of producing crude oil, gas, petroleum, or other hydrocarbon substances - 4 - in the City of Huntington Beach shall be entitled to a credit for that portion of the unexpired term of this section. The amount of such credit shall be ascertained by dividing the total amount (not including penalties) paid for such. license by Three Hundred. and Sixty Five (365) and thereafter multiplying the resultant quotient by the number of days remaining in such unexpired term any such claimed credit shall be indicated on the quarterly statement pro- vided herein to be filed, and the person so filing such statement is authorized to deduct the amount thereof from the amount due. All credits shall be filed as herein provided on or before June 30, 1969. (E) The person subject to the payment of the tax shall, before the business tax for each quarter becomes delinquent, file with the City a written statement setting forth the number of wells in operation and the number of barrels of oil produced. by each well during the pertinent three-month period of production upon which the tax is due, is to be calculated and. such person shall pay at such time the amount of the business tax computed upon the measure of the tax re- ported in the statement . The written - 5 _ statement shall include a declaration substantially as follows : "I declare under penalty of making a false declaration that I am authorized to make this statement and that to the best of my knowledge and belief it is a true, correct and. complete statement made in good faith for the period stated., in compliance with the provisions of the Huntington Beach Ordinance Code . " w Such statement shall not be conclusive against the City of Huntington Beach, or to the information set forth therein, nor shall the filing of a statement preclude the City of Huntington Beach from collecting by appropriate action any additional tax that is later determined. to be due and payable. (F) Every person required. to have a license under this section shall keep full, true and accurate records as to the amount of oil produced and shipped or sold by him from# wells located within the City of Huntington Beach and shall upon demand of the City Administrator make said records, together with any shipping documents or sales invoices pertaining to such oil, available for the inspection of the City Administrator or his representative at all reasonable times. - 6 - S. 2153 . Supersedence . The provisions of this ordinance shall replace and supersede any other licensing provisions of the Huntington Beach Ordinance Code purporting to relate to the licensing of business herein taxed. S . 2154. Penalty for Delinquency. If any fee herein required to be paid to the City of Huntington Beach is not paid at the time and in the manner herein provided, the same shall, thirty days thereafter, auto- matically be and become delinquent, and a penalty in an amount equal to ten per cent (10%) of such fee shall be added thereto for such delinquency, which penalty shall be and become a part of such fee and shall be enforced and collected as a part of such fee. S . 2155. Severability. If any section, subsection, sentence, clause, phrase, or portion of this ordinance or the application thereof to any person, firm, corporation or circumstance, is for any reason held to be invalid or unconstitutional by any decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portion of this article. The City Council of the City of Huntington Beach hereby declares that it would have adopted this article and each subsection, sentence, clause, phrase or portion thereof, irrespective of the fact that one or more sections, subsections, sentence, clause or phrase or portion be declared invalid or unconstitutional. S . 2156. Penalty. Any violation of any of the provisions of this article shall be a misdemeanor and - 7 - punishable by a fine up to $500.00 or imprisonment up to 180 days or both. SECTION 2. The City Clerk shall certify to the passage and adoption of this ordinance and shall cause the same to be published by one insertion in the Huntington Beach News, a weekly newspaper, printed, published and cir- culated in the City of Huntington Beach, California, and thirty (30) days after the adoption thereof, the same shall take effect and. be in force. PASSED AND ADOPTED by the City Council of the City of Huntington 'Beach, California at a regular meeting held. on the day of 1968. Mayor ATTEST: City Clerk APPROVED AS TO FORM: City Attorney - 8 -