It is 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 without first obtaining a license therefor from
the City.
(1652-9/71)
A.
The
term of such license shall be one year, commencing on July 1st of
each year beginning with July 1, 1978.
B.
At the
end of the term of any license issued or renewed hereunder, such license
shall be of no further force or effect unless renewed as hereinafter
provided.
(1652-9/71, 1924-7/74, 2298-6/78)
Every person required by this chapter to have a license shall
pay to the City of Huntington Beach the fees hereinafter provided,
in the manner hereinafter provided:
A.
Prior
to the issuance or renewal of such license, a base annual fee of $100.00
per well, which shall apply to each well producing oil or gas, or
both.
B.
For
the period commencing July 1, 1978, and for each succeeding fiscal
year, and in addition to the base annual fee, an amount equaling the
following:
1.
Ten
cents per barrel of oil produced and sold per well per quarter, except
for stripper well crude oil.
2.
Eight
cents per barrel of stripper well crude oil, as defined and used in
the Emergency Petroleum Allocation Act of 1975 as amended and recodified
(15 U.S.C.A. Section 757) and regulations promulgated thereunder,
produced and sold per well per quarter, less a credit of $25.00 per
well per quarter. No carry-over of credit shall be permitted.
3.
One
cent per thousand cubic feet (MCF) of dry or wet gas, produced and
sold for delivery outside the Huntington Beach oil and gas field.
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Further, in lieu of the alternative tax of two percent of the
gross market price provided in Ordinance No. 2298, the taxes imposed
by this subsection shall be increased or decreased annually as of
July 1st of each year, commencing July 1, 1979, in an amount equal
to the increase or decrease from the base index in the then latest
available consumer price index, as prepared and released by the United
States Department of Labor, Bureau of Statistics for the Los Angeles-Long
Beach area. The last index published for the month of June, 1978 shall
be deemed to be the base index for the purposes of this subsection.
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(1652-9/71, 1759-8/72, 1924-7/74, 2298-6/78, 2321-10/78)
The base annual fee shall be due and payable on or before July
1st of each fiscal year. Such base annual fee shall be delinquent
on the day following such due date; provided, however, that for the
period beginning July 1, 1978, every person required by this chapter
to pay such base annual fee shall be granted a grace period in which
to meet the requirements imposed by this chapter, and no penalty shall
be exacted therefor for the period up to and including October 31,
1978.
(1652-9/71, 1759-8/72, 1924-7/74, 2298-6/78, 2302-9/78,
2321-10/78)
Payment for the quarter consisting of October, November and
December shall be due and payable on January 1st; payment for the
quarter consisting of January, February and March shall be due and
payable on April 1st; payment for the quarter consisting of April,
May and June shall be due and payable on July 1st; and payment for
the quarter consisting of July, August and September shall be due
and payable on October 1st.
(1652-9/71)
All payments for all quarters, as required by this chapter,
shall be delinquent on the day following the due date for any such
quarterly payment; provided, however, that the quarterly payment due
October 1, 1978 shall not be delinquent until October 31, 1978.
(1652-9/71, 2097-9/76, 2321-10/78)
For the purpose of determining the license fee:
A.
A "well"
is located within the City 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, irrespective of the subsurface location of the well,
the production interval thereof, or where the hole of the well may
be bottomed.
B.
A "barrel
of oil" consists of 42 U. S. gallons of crude petroleum of hydrocarbon
substances corrected for temperature variations in accordance with
methods generally approved in the petroleum industry.
C.
"Petroleum
or hydrocarbon substances" means crude oil remaining after the removal
therefrom of water or other impurities by preliminary processing in
the vicinity of the well site, preparatory to the shipment thereof.
D.
If oil
produced from two or more wells shall be commingled without the production
of the respective wells being separately measured, each well whose
production has been commingled shall be considered as having produced
an equal part of the total.
(1652-9/71)
Any license issued under this chapter 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.
(1652-9/71)
The license required under this chapter shall be automatically
suspended on any one or more of the following grounds:
A.
Fees
required by this chapter have not been paid and are delinquent;
(1652-9/71)
The suspension of any license, as herein provided, shall not
be a bar to prosecution of the holder thereof for a violation of any
provision of this chapter or of any law or ordinance of the state
or City.
(1652-9/71)
Every person required to have a license under this contract
shall on or before the 30th 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:
A.
The
name or other identification of all oil and gas wells located in the
City operated by him or her during any quarter;
B.
The
number of barrels of oil produced from each of said wells during such
quarter;
C.
The
amount of wet or dry gas measured in thousands of cubic feet (MCF)
produced for delivery outside the Huntington Beach oil and gas field,
from each of said wells during such quarter; and
D.
The
computation of the amount of fee with respect to such production due
the City. The 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:
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I declare under penalty of perjury 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 Municipal Code. Executed at __________, California on __________.
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Such statement shall not be conclusive against the City,
nor shall it be conclusive as to the information set forth therein,
nor shall the filing of such statement preclude the City from collecting
by appropriate action any additional fee that is later determined
to be due and payable.
(1652-9/71, 1759-8/72, 2321-10/78)
Every person required to have a license under this chapter shall
keep full, true and accurate records as to the amount of oil or gas
produced by him or her from wells located within the City, and shall
upon demand of the City Clerk, or his or her representative, make
said records, together with any shipping documents or sales invoices
pertaining to such oil and gas available for the inspection of the
City Clerk, or his or her representative, at all reasonable times.
(1653-12/71)
Those businesses and activities for which a fee is required
under this chapter shall be exempt from any other fee required by
this title.
(1653-12/71)
If any fee herein required to be paid to the City is not paid
before it becomes one month delinquent, as provided in this chapter,
a penalty in an amount equal to 10% of such fee shall be added thereto,
and an additional penalty in an amount equal to 10% of such fee for
each one 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,
however, that the aggregate of such penalties shall not exceed 100%
of the amount of the delinquent license fee.
(1652-9/71, 1759-8/72)
