3/14/2013 1:17:00 PM Fracking supporters announce well fees, tax rates
SPRINGFIELD, Ill. (AP) — Backers of a measure to regulate high-volume gas and oil drilling in Illinois have agreed on the fees and extraction taxes that drillers would pay to the state.
The rates were announced today during a House committee meeting.
Industry operators will pay $13,000 per well to help fund the state’s regulatory program. They’ll also pay a 3 percent per barrel “severance” tax during the first two years of operation, and higher taxes in later years.
Lawmakers are considering a measure to regulate hydraulic fracturing, or “fracking,” in Illinois. Fracking uses water, sand and chemical mixtures to crack deep rock formations to release oil and natural gas.
The committee will vote Friday on whether to move the proposal to the House floor for consideration.