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HomeMy WebLinkAboutOrdinance #1652 ORDINANCE NO . 1652 AN ORDINANCE OF THE CITY OF HUNTINGTON BEACH AMENDING THE HUNTINGTON BEACH ORDINANCE CODE BY ADDING SECTION 2114 .2 .15 .1 PERTAINING TO OIL BUSINESS NONPRODUCTION LICENSE TAX, AND ADDING ARTICLE 215 TO CHAPTER 21 PERTAINING TO OIL PRODUCTION BUSINESS LICENSE TAX The City Council of the City of Huntington Beach does ordain as follows : SECTION 1 . The Huntington Beach Ordinance Code is hereby amended by adding thereto Section 2114 . 2 .15 .1 to read as follows : 2114 . 2 .15 .1 . OIL BUSINESS . NONPRODUCTION. Every per- son conducting, managing, carrying on, or engaging in, from a fixed place of business in the City of Huntington Beach , the business or activity of oil well , injection well , or water-source-well drilling or servicing operation, or refin- ing oil or petroleum products and producing the byproducts , or marketing, selling, distributing at wholesale , oil or any petroleum products , or byproducts , or maintaining tankage or warehouse storage facilities where oil is kept for the purpose of wholesale distribution thereof , shall pay a li- cense tax in accordance with Section 2114 of this chapter. Nothing in this section shall be deemed to apply or relate to actual oil or gas production operations. SECTION 2 . The Huntington Beach Ordinance Code is hereby amended by adding thereto a new Article 215 to read in words and figures as follows : ARTICLE 215 OIL PRODUCTION BUSINESS LICENSE TAX 2150 . OIL BUSINESS. PRODUCTION. LICENSE REQUIRED. It shall be unlawful for any person to conduct , manage , carry on or engage in the business or activity of producing crude oil, gas , petroleum or other hydrocarbon substances or products from any well or wells located in the City of Huntington Beach without first obtaining a license therefor from said city . 1. 2150 .1 . TERM OF LICENSE . The term of such license shall be one (1) year, commencing on July l of each year, beginning with the year 1971, except that in the event the effective date of this article is after July 1, 1971, the term of the license for such fiscal year shall commence with the effective date of this article and shall continue to June 30 , 1972 inclusive , and the base annual fee for such fiscal year shall be adjusted ac- cordingly. At the end of the term of any license issued or renewed hereunder, such license shall be of no further force and ef- fect unless renewed as hereinafter provided. 2151 . LICENSE FEES REQUIRED. Every person required by this article to have a license shall pay to the City of Hunt- ington Beach a base annual fee , and in addition thereto , the quarterly fees in the manner and to the extent hereinafter provided: (a) Prior to the issuance or renewal of such license , a base annual fee of Thirty Dollars ($30 . 00) per well . Such base annual fee shall apply to each well producing oil or gas , or both . (b ) For the fiscal year commencing July 1, 1971, and each succeeding fiscal year, and in addition to the base annual fee , an amount equalling two and one-half cents ($ .025) per barrel of oil produced by each well per quarter, less a credit of Seven and 50/100ths Dollars ($7 . 50 ) per well per quarter. No carry- over of credit shall be permitted. (c) For the fiscal year commencing July 1, 1971, and each succeeding fiscal year, and in addition to the base annual fee , an amount equalling one-fourth of one cent per MCF (one thou- sand cubic feet) of gas produced by each well per quarter, less a credit of Seven and 50/100ths Dollars ( $7 . 50 ) per well per quarter. No carry-over of credit shall be permitted . (d) A well producing both oil and gas shall be entitled to one (1) credit of Seven and 50/100ths Dollars ($7 .50) per such well per quarter. No carry-over of credit shall be per- mitted. 2151 .1 . BASE ANNUAL FEE . WHEN DUE AND DELINQUENT. All base annual fees , required by this article , shall be due and payable on or before June 30 , 1971, and on or before June 30 each year thereafter. Such base annual fees shall be delin- quent on the day following such due date , except that in the event the effective date of this article is after June 20 , 1971 , the base annual fees shall be due and payable on the effective date of this article and shall be delinquent ten (10 ) days thereafter. 2. 2151 .3 . QUARTERLY PAYMENTS . WHEN DUE . Payment for the quarter consisting of October, November and December shall be due and payable on January 1 ; payment for the quarter con- sisting of January, February and March shall be due and pay- able on April 1; payment for the quarter consisting of April, May and June shall be due and payable on July l; and payment for the quarter consisting of July, August and September shall be due and payable on October 1. 2151 .5 . QUARTERLY PAYMENTS . WHEN DELINQUENT. All pay- ments for all quarters , as required by this article, shall be delinquent on the thirty-first day after the day such quarterly payments are due and payable . 2152 . DEFINITIONS . For the purpose of determining the license fee : (a) A well is located within the City of Huntington Beach if the surface location of the well, the surface of the well itself, or if any portion of the well is located within the city of Huntington Beach, irrespective of the subsurface lo- cation of the well, the producing interval thereof, or where the hole of the well may be bottomed . (b ) A barrel of oil shall consist of forty-two (42) U. S . gallons of crude petroleum or hydrocarbon substances corrected for temperature variations in accordance with methods generally approved in the petroleum industry . Petroleum or hydrocarbon substances means 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. (c) If oil produced from two (2) or more wells shall be commingled without the production of the respective wells being separately measured, each well whose production has been com- mingled shall be considered as having produced an equal part of the total . 2153 . LICENSE RENEWAL. Any license issued under this article shall be renewed annually provided all delinquencies are paid in full and the annual base fee for the renewal term is paid in full prior to such renewal. 2153 .1 . LICENSE . SUSPENSION OF . The license required under this article shall be automatically suspended on any one or more of the following grounds : (a) Fees required by this article have not been paid and are delinquent . 3 . (b ) Production statements have not been filed with the city when and as required by Section 2154 . (c ) Failure to comply with Section 2154 .1 of this code . Any suspension of license shall be removed upon compliance with all provisions of this article . 2153 .3 . SUSPENSION OF LICENSE NOT BAR TO PROSECUTION . The suspension of any license , as herein provided, shall not be a bar to the prosecution of the holder thereof for violation of any provision of this article or of any law or ordinance of the state or city . 2154 . PRODUCTION STATEMENT REQUIRED. Every person re- quired, to have a license under this article shall on or before the tenth day of January, April , July , and October file with the City Clerk a statement setting forth such information as the City Clerk shall require , including: (1) the name or other identification of all oil wells located in the city operated by him during any quarter; (2 ) the number of barrels of oil or the number of cubic feet of gas produced from each of said wells during such quarter; and (3) the computation of the amount of fee with respect to such production due the city . Said statement shall be signed by the person required to have the license , or by a managing officer or agent thereof, and shall include a declaration substantially worded as follows : "I declare under penalty of making a false dec- laration 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 Hunt- ington Beach Ordinance Code . " 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 Hunt- ington Beach from collecting by appropriate action. any ad- ditional fee that is later determined to be due and payable . 2154 .1 . RECORDS REQUIRED. Every person required to have a license under this article shall keep full, true and accurate records as to the amount of oil or gas produced by him from wells located within the city of Huntington Beach , and shall upon demand of the City Clerk, or his representative , make said records , together with any shipping documents or sales invoices pertaining to such oil or gas available for the inspection of the City Clerk, or his representative , at all reasonable times . 4 . 2154 . 3 . EXEMPTION. Those businesses and activities for which a fee is required under this article shall be exempt from any other fee required by Chapter 21 of this code . 2155 . PENALTY FOR DELINQUENCY . If any fee herein re- quired to be paid to the City of Huntington Beach is not paid before it becomes delinquent , as provided in this article , a penalty in an amount equal to ten percent (10%) of such fee shall be added thereto for such delinquency on the date such fee becomes delinquent , and an additional penalty , in an amount equal to ten percent (10%) for each three-month period during which such fee continues or remains delinquent shall be assessed . Such penalties shall be and become a part of such fee and shall be enforced and collected as part of such fee , provided, how- ever, that the aggregate of such penalties shall not exceed one hundred percent (100%) of the amount of the delinquent license fee . 2155 . 1. PENALTY FOR VIOLATION. Any person violating any of the provisions of this article shall be guilty of a misde- meanor, and shall be deemed guilty of a separate violation for each and every day , or portion thereof, during which any vio- lation of any of the provisions of this article is committed, continued or permitted . Upon conviction of any such violation, such person shall be punished by a fine of not more than Five Hundred Dollars ($500 ) or by imprisonment up to six (6) months or both such fine and imprisonment for each such violation . 2156 . SEVERABILITY . If any section, subsection, sen- tence , clause , phrase , or portion of this article , or any a- mendments or revisions thereto, or the application thereof to any person, firm, corporation or circumstance , is for any rea- son 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 portions 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, including amend- ments or revisions thereto, irrespective of the fact that one or more sections , subsections , sentences , clauses , or phrases or portions be declared invalid or unconstitutional . SECTION 3 • This ordinance shall take effect thirty days after its adoption . The City Clerk shall certify to the pas- sage of this ordinance and cause same to be published within fifteen days after adoption in the Huntington Beach News , a weekly newspaper of general circulation, printed and published in Huntington Beach, California. 5 . PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the 16th day of August �971 • 6 e Mayor ATTEST: C7,.f,�e City erk APPROVED AS TO FORM: City Attorney 6 . Ord. Mo. 1652 STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss : CITY OF HUNTINGTON BEACH ) I , PAUL C. JONES, The duly elected, qualified, and acting City Clerk of the City of Huntington Beach and ex officio Clerk of the City Council of the said City, do hereby certify that the whole number of members of the City Council of the City of Huntington Beach is seven; that the foregoing ordinance was read to said City Council at a regular meeting thereof held on the 2nd day of August 19 71 and was again read to said City Council at a regular meeting thereof held on the 16th day of August , 1971 , and was passed and adopted by the affirmative vote of more than a majority of all the members of said City Council. AYES: Councilmen: Shipley, Bartlett , Green, Coen, McCracken NOES: Councilmen: None ABSENT: Councilmen: Gibbs , Matney City Clerk and -officio Clerk of the City Council of the City t. ►AllL C. JONES, CITY CLERK of the City of of Huntington Beach, California i Huntington Beach and ex-officio Clerk of the City Council, do hereby certify that this ordinance has been published in the Huntington Beach News on 19.......... in accordance with the City Charter of said City. PAUL C. JONES ..........I..................................................I............... C y City Clerk V Deputy City Clerk